Celebrating individuality! - Exception!

Rezidor SAS Annual Report 2005
Rezidor SAS Annual Report 2005
Celebrating individuality! The spectacular Radisson SAS Hotel, Frankfurt with its breathtaking
architecture, exterior as well as interior is typical of the new generation of highly expressive Radisson
SAS four-star plus and luxury hotels. Although always strikingly contemporary, these New Breed hotels
are all different in style, defying design monotony.

This is Rezidor SAS
there are 22,000+ rezidorites committed to Yes i Can! in 49
countries worldwide. Rezidor SAS is one of the fastest growing hospitality
companies in the world with 263 hotels in operation and/or under
development in 49 countries across Europe, the Middle East, Africa and
Asia. The SAS Group has a 75% share in the company while Carlson
Hotels Worldwide has a 25% stake in the company and works closely
FiVe stroNG brANDs
n radisson sAs – First Class – 179 hotels
At Radisson SAS, the Yes I Can! culture translates into treating each and every guest as a true individual. Radisson SAS
aims to achieve its goal of being a market leader by combining one-to-one hospitality with clever service concepts and
New Breed hotel design.
n Country inn – Mid-market – 6 hotels
Offering a unique Country Concept with a cosy atmosphere and friendly staff, Country Inn is all about fireplaces in the hall,
comfortable lounges and relaxing rooms. Country Inn has positioned itself as a mid-market alternative for travellers who
want a high level of comfort and excellent value for their money.
n Missoni – Lifestyle – 2 hotels
Missoni is a new lifestyle hotel brand developed in partnership with the international fashion house of the same name and
aims to attract the design and style conscious traveller with hotels in city centres and resorts, designed in a strong
contemporary style. Given Missoni’s growing global brand awareness, it serves not only as a suitable replacement for
Cerruti, but is fundamentally a better proposition.
n Park inn – Mid-market – 68 hotels
At Park Inn, the focus is on offering the hospitality essentials better than any competitor within the same market.
An international, mid-market, highly efficient, fresh and innovative brand, Park Inn is an uncomplicated and affordable
hospitality product that offers consistently well executed service with a warm and friendly approach.
n regent – Luxury – 4 hotels
An international hospitality legend, Regent is virtually synonymous with luxury hotels. With a well-defined service concept
inspired by the Tao from the Far East, Regent has set the standard for high-end customer service by continuously
reinventing the luxury experience for guests.
Rezidor SAS also has 4 unbranded hotels in its portfolio.
owNersHiP
sAs GroUP
CArLsoN
HoteLs
worLDwiDe
75% 25%
reziDor sAs
executive Summary executive Summary
with Rezidor SAS in several areas such as distribution, loyalty programmes
and sales. In the year 2005, Rezidor SAS saw a 11% RevPAR
growth and group wide revenues reached MEUR 1,478 (1,247). Rezidor
SAS had 22,854 employees, of which 19,928 worked under the Radisson
SAS brand; 2,071 under Park Inn; 139 under Country Inn and 716
under Regent.
75% – Europe’s fourth largest airline, the SAS
Group is listed on the stock exchanges in
Stockholm, Copenhagen and Oslo.
25% – Carlson Hotels Worldwide is ranked
amongst the largest privately held corporations
in the United States and is based in Minneapolis,
Minnesota, USA.
CoVeriNG 49 CoUNtries iN eUroPe, tHe MiDDLe eAst, AFriCA 1AND
AsiA
1
AHr, oCC AND reVPAr
MANAGed ANd LeASed oPeRATioNS,
3
RoLLiNG (PR deC)
1
1
120
100
80
60
40
01
02
03
Priorities -05
n Continue to increase financial performance
1
04
3
1
12
n Substantially grow the Park Inn brand
n Form a viable partnership with a design
house to launch a lifestyle brand
n Establish a higher level of integration
with Carlson
05
AHR (eUR) RevPAR (eUR) oCC (%)
29
19
2
7
1
7
24
12
35
NUMber oF HoteLs
RezidoR 1
2
SAS 2
1
4 1
7 2
Radisson SAS (179) 1
Country inn (6)
Missoni (2)
1
Park inn (68)
Regent (4)
5
Unbranded (4)
2
29
1
1
6
4
n RevPAR growth increased by 11%
n Park Inn grew from 0 to 68 hotels
in just three years
1
n Rezidor SAS has partnered with design
house Missoni and the first Missoni Hotel
will open in 2007
n Carlson acquired a 25% stake in Rezidor SAS
7
1
2
1
1
1
1
1
1
1
2
8
4
1
3
1
1
2
19
1
7
2
1
1
3
7
35
1
1
1
1
2
2
4 1
7
FiNANCiAL HiGHLiGHts (Pro ForMA)
RezidoR SAS
1
1
2
5
1
2
1
2
TeUR 2005 2004
Group-wide revenues 1,478,000 1,247,000
operating revenue 587,046 498,728
eBiTdA 48,780 27,191
eBiTdA Growth, % + 179,4 + 234,2
RoCe, % 12,2 4,3
Total investments 34,605 53,828
ACHieVeD -05 Priorities -06
n Continue to increase financial performance
n Re-integrate Yes I Can! in the psyche
and culture of the company in a more
prominent way
n Acquire a higher level of self sufficiency
n Increase portfolio with a particular focus
on Russia, CIS, the Middle East and
Eastern Europe
1
1
6
4
1
1
1
1
1
1
1
2
2
4 1
7
1
1
2
2
1
2
1
1
4
1
1
4
Rezidor SAS locations
AUSTRiA
Radisson SAS: Salzburg, Vienna (2)
Park Inn: Vienna (opening 2006)
Country Inn: Vienna
1
AzeRBAijAN
Radisson SAS: Baku
Park Inn: Baku 1
BAHRAiN
2
1
Radisson SAS: Manama
BeLGiUM
Radisson SAS: Antwerp, Brussels (2), Hasselt, Spa (2)
Park Inn: Liège
BULGARiA
Radisson SAS: Sofia
CHiNA
Radisson SAS: Beijing
CRoATiA
Regent: Zagreb
CzeCH RePUBLiC
Radisson SAS: Prague
deNMARk
Radisson SAS: Aalborg, Aarhus, Copenhagen (3),
Frederikshavn, Odense, Bornholm, Silkeborg
Park Inn: Aalborg, Copenhagen, Vejle
eGyPT
Radisson SAS: El Quseir, Sharm El Sheikh, Taba
Unbranded: Sharm El Sheikh
eSToNiA
Radisson SAS: Tallinn
FiNLANd
Radisson SAS: Espoo, Helsinki (3), Oulu, Turku, Vaasa
FRANCe
Radisson SAS: Aix-Les-Bains, Les Arcs, Biarritz,
Bordeaux (opening 2007), Lyon, Marseille (opening
2007), Nice, Disneyland Resort Paris, Paris (2),
Paris-Boulogne
Park Inn: Arcachon, Lyon Ouest, Mâcon, Nancy,
Nice, Orange
Country Inn: Paris
Unbranded: Aix-Les-Bains
GeRMANy
Radisson SAS: Berlin, Cologne, Cottbus, Dresden,
Düsseldorf (2), Erfurt, Fleesensee, Frankfurt, Halle-
Merseburg, Hamburg, Hannover, Karlsruhe, Leipzig
(opening 2006), Lübeck, Neubrandenburg, Rostock,
Rügen, Wiesbaden, Wutzschleife
Park Inn: Berlin, Bochum, Chemnitz-Hartmannsdorf,
Cologne (2), Dortmund, Düsseldorf, Erfurt, Hannover,
Kamen, Munich (2)
Country Inn: Timmendorfer Strand
Regent: Berlin
2
1
2
HUNGARy
Radisson SAS: Budapest, Bükfürdö
Park Inn: Sarvar
iCeLANd
Radisson SAS: Reykjavik (2)
Park Inn: Reykjavik
iRAN
Unbranded: Kish Island
iReLANd
Radisson SAS: Athlone, Cavan (opening 2006), Cork,
Dublin (2; one opening 2007), Galway, Letterkenny,
Limerick, Sligo
Park Inn: Dublin, Dundalk, Mulranny
iTALy
Radisson SAS: Rome
joRdAN
Radisson SAS: Amman, Aqaba
kAzAkHSTAN
Radisson SAS: Astana (opening 2006), Medeu–
Almaty (opening 2007)
Regent: Almaty
kUwAiT
Radisson SAS: Kuwait City
LATviA
Radisson SAS: Riga
LeBANoN
Radisson SAS: Beirut
LiTHUANiA
Radisson SAS: Klaipeda, Vilnius
MALTA
Radisson SAS: Malta (2)
THe NeTHeRLANdS
Radisson SAS: Amsterdam (2)
NiGeRiA
Radisson SAS: Lagos
NoRwAy
Radisson SAS: Ålesund, Beitostølen, Bergen (2),
Bodø, Frederikstad (opening 2007), Haugesund,
Kristiansand, Lillehammer, Oslo (5), Spitsbergen,
Stavanger (2), Tromsø, Trondheim, Trysil (opening 2008)
Park Inn: Geilo, Haugesund, Stavanger, Rauland
oMAN
Radisson SAS: Muscat
PoLANd
Radisson SAS: Gdansk (opening 2007), Krakow,
Poznan (opening 2007), Szczecin, Warsaw, Wroclaw
PoRTUGAL
Radisson SAS: Lisbon
RoMANiA
Radisson SAS: Bucharest (opening 2007)
RUSSiA
Radisson SAS: Moscow (3; two opening 2007),
St. Petersburg, Sochi (3)
Park Inn: Ekaterinburg
SAUdi ARABiA
Radisson SAS: Jeddah (2), Al Madina (opening 2007),
Riyadh, Yanbu Al Bahr
Park Inn: Al Khobar (opening 2007), Riyadh
SLovAkiA
Radisson SAS: Bratislava
SoUTH AFRiCA
Radisson SAS: Cape Town
Park inn: Cape Town
SPAiN
Radisson SAS: Mijas (opening 2007)
SwedeN
Radisson SAS: Gothenburg, Helsingborg, Karlstad,
Linköping, Malmö, Örebro, Östersund, Stockholm (5),
Uppsala
Park Inn: Borlänge, Falun, Gislaved, Gävle, Haninge,
Karlskrona, Kvänum, Nyköping, Sandviken,
Stockholm, Solna, Täby, Uppsala, Vargön, Värnamo
SwiTzeRLANd
Radisson SAS: Basel, Lucerne (opening 2006),
St. Gallen
Park Inn: Lully, Zurich
TUNiSiA
Radisson SAS: Djerba (opening 2006)
TURkey
Radisson SAS: Ankara, Istanbul (2)
UkRAiNe
Radisson SAS: Kiev
UNiTed ARAB eMiRATeS
Radisson SAS: Dubai–Media City, Sharjah
UNiTed kiNGdoM
Radisson SAS: Birmingham, Bristol (opening 2008),
Durham (opening 2008), Leeds, Liverpool, London,
Manchester, Stansted, Belfast, Limavady, Edinburgh,
Glasgow, Jersey (opening 2007)
Park Inn: Bedford, Cardiff, Harlow, Lakeside, London
(2), Northampton, Nottingham, Telford, Watford, West
Bromwich, Newry
Country Inn: London (2)
UzBekiSTAN
Radisson SAS: Tashkent

TABLE OF CONTENTS
2005 HIGHLIGHTS
paGe 8
LeTTeR FROM THe CeO
paGe 0
THE GROUP
PAGE 14
Financials 20
Operations 24
Markets 26
THE BRANDS
PAGE 28
Brands 32
Marketing, Sales & Distribution 36
THE PROPERTIES
PAGE 38
Properties 42
Property Highlights 44
Business Development 48
THE RELATIONSHIPS
PAGE 52
Employees 58
Awards 60
Customers 62
Partners & Owners 64
Purchasing 65
Community & Environment 66
Governance & Management 68
THE FINANCIALS
PAGE 76
Statement Of The Board Of Directors
And Managing Director 77
Auditor’s Compilation Report 78
Board Of Directors’ Report 79
Group Highlights 82
Income Statement 83
Balance Sheet 84
Statement Of Changes In Equity 86
Cash Flow Statement 87
Notes To The Pro Forma Group Account 88

It has many nicknames: Blue Heaven, Giant Coin, Cube in a Coin and so on and so forth. as cute as the nicknames are, the Radisson SaS
Hotel in Frankfurt is not to be trifled with. This futuristic building, designed by London-based architect John Seifert and hospitality designers
Matteo Thun and adam Tihany, is the first thing to catch the eye as one drives away from the airport towards the centre of Frankfurt.

Whether guests want their shirts laundered
in three hours, check-out late at p.m. or
log on to the Internet for free from anywhere
in the hotel, at Radisson SaS, it’s all part of
the service package.

Resisting generic design solutions, the New
Breed of Radisson SaS hotels are kicking
hospitality design up a notch to surpass all
expectations and offer travellers an experience
and an adventure, a story that can be
taken home without packing anything extra in
the suitcase.

8
NEw BRAND:
The Missoni Deal
Rezidor SaS chose Missoni to make
its mark in the lifestyle hotel market
due to the truly unique and identifiable
style of the famous fashion house.
2005 Highlights
PERFORmANCE:
RevpaR reached eUR ,
an increase of %.
Group wide revenues grew
to MeUR , 8 up 8.5%.
eBITDa increased to
MeUR 8.8 (2 .2).
DEALS:
expanding park Inn
in the UK
park Inn took over management of nine
hotels across the UK and there are plans
to renovate and upgrade the current
product to park Inn standards for approximately
MeUR 2 over the next two years.

GROwTH:
In 2005, Rezidor SaS
opened hotels and
increased the supply of
number of rooms by
%. This is the most
significant organic growth
in the industry in europe.
2005 Highlights
CORPORATE:
The Carlson Deal
Carlson Hotels Worldwide, chaired by
Marilyn Carlson Nelson, acquired a
25% stake in Rezidor SaS, securing
the brand portfolio until 2052 and
reducing licensing costs.
SCALE:
Radisson SaS, known for
its innovative design and
striking architecture, is
now ranked the second
largest upscale brand in
europe.

0
Letter from the CeO
”Yes I Can! is the driving mechanism
of the genuine hospitality culture
that energises all our brands and
proves our commitment to superior
guest service and satisfaction.
Through Yes I Can! we constantly
build on an enthusiastic hospitality
culture that creates true value for
customers and owners alike.”

Turning an enthusiastic Hospitality Culture into Value
Today, Radisson SAS is the second largest
upscale brand in Europe and second
to none when measured on organic
growth. Its younger sibling, Park Inn, has
had a flying start, going from 0 to 68 hotels
in just three years.
I have sometimes been accused of being a
growth junkie and there is certainly some truth to
this. I do believe that outgrowing the competition
is the only way to secure a position in a marketplace
as dynamic as ours. The hotel industry has
changed drastically in the last decade, as have
all travel-related industries. Our industry is challenged
by complex business patterns dictated
by contrasting developments. However, there
are a number of strong underlying currents that
you have to deal with to stay in business, especially
if you want to stay ahead.
To have sharply defined and widely recognized
brands has become a major success factor.
Global brands and industry majors are
consistently increasing their market share, while
local brands and regional companies are finding
it hard to compete. To a great extent, success
in this business is about critical mass – to be eligible
in the hotel business race you have to be
there. And to be there, you must grow.
We have a long history of fast growth. We
have multiplied tenfold since we started operating
as a separate company in 1993 and now
rank among the five largest hotel management
companies in Europe. In fact, Rezidor SAS is
one of the fastest growing hospitality management
companies in the world. We intend not
only to keep up this pace but to accelerate it. By
2015, we aim to have 700 hotels and to achieve
this goal we will need to grow by at least 40
properties annually, across all brands.
But it’s not only a question of growing fast, it’s
vitally important to have profitable growth. To a
great extent that depends on how we fuel the
growth. Mergers and acquisitions are a fast track
to growth, but nothing matches the power of primarily
growing organically, building momentum
from within. In 2005, we increased our supply by
16% in terms of number of rooms, the most significant
organic growth in the industry in Europe.
Letter from the CeO
To grow organically, it is necessary to have truly
competitive brands and products, that not only
proactively meet the needs and preferences of
customers but are also easy to find and easy to
buy. An aggressive growth strategy coupled
with a clear understanding of customers and
what they want are our key value drivers. This is
true at every level: brand, hotel and individual
service provider.
Each of our five brands has a distinctive
brand promise which meets clearly defined
consumer needs and profiles and is delivered
by committed people. As customer needs and
preferences change, so do our brands and what
they offer. Radisson SAS is a good example of
how we’re responding to change in buyer needs
and preferences. Although clever functionality is
still the backbone of the Radisson SAS brand,
we know that upscale guests are looking for a
great experience, something truly memorable
from their stay. The New Breed of Radisson
SAS hotels with their spectacular architecture
and design – with service elements to match –
are redefining contemporary upscale hospitality.
Some of these new hotels clearly have “destinational”
qualities, while all of them create delight
and add value to a holiday or business trip. Increasingly,
we are building share of market by
gaining share of heart!
We will also bring more heart to the market
with our new lifestyle brand, Hotel Missoni. Bold
and highly contemporary, Hotel Missoni will build
on the typical Missoni look of iconic home-ware
design and offer the next generation of lifestyle
hotels. We entered into an agreement with the
famous Italian fashion house after exhaustive
partner evaluation that led us to conclude that
Missoni is one of few fashion houses with a truly
unique and identifiable style, well-suited for rescale
in a hospitality format. If Hotel Missoni can
capture any of the wonderful warmth and remarkable
finesse of the Missoni family, and not
least the spirit of Rosita Missoni herself, I know
it will be a great success. The first Hotel Missoni
will open for business in 2007, and the aim is to
have 30 hotels by 2015.
Our brand portfolio with focussed hospitality
products from mid-market to full luxury reflects
another key strategy – diversification. We believe
it’s important to explore various avenues for
growth and consolidation, and at the same time
hedge against market and country risk. Today,
we have hotels in operation and/or under development
in 49 countries in Europe, the Middle
East, Africa and Asia. We manage city centre and
suburban hotels, airport hotels and resort hotels.
Our properties vary from 900+ room high-rises to
boutique properties with just 46 rooms.
By 20 5, we aim to have 00
hotels and to achieve this goal
we will need to grow by at least
0 properties annually, across
all brands.
The year 2005, was a year of change, of the
market turning around, of progress and also,
sadly a year in which the world witnessed natural
disasters of large magnitudes and terrorism
found its way to our doorstep. On the 9th of
November, the Radisson SAS Hotel, Amman in
Jordan was the target of a vicious attack and a
member of the Rezidor SAS family, Yousef Homaisi,
a young waiter, lost his life, along with 30
of our guests. Seeing the damage saddened
and enraged me, as this company, in many
ways, is my life. The team at Amman showed
the true value of Yes I Can! and kept the hotel
running while cooperating with authorities and
taking care of guests.
This year saw the long-time franchise partnership
with Carlson Hotels Worldwide develop into
a shareholder agreement when Carlson acquired
a 25% shareholding in Rezidor SAS from the SAS
Group in return for renegotiated commercial terms
of the current Master Franchise Agreement (MFA).
The Carlson deal was a major step towards securing
our future, and made a favourable impact on
our bottom-line from the day the deal was signed.
Licensing costs were reduced as part of the deal,
improving pre-tax profits for the company by
MEUR 6 in 2005. The agreement brings additional
scale and profitability to Rezidor SAS and further
enhances development opportunities by giving us
an even better platform for growth.

Goals and targets
CORPORATE
2
FINANCIAL
mARkET
■ To be the preferred alternative in hotel management with
distinctive brands and treating hotels as individual units in
order to optimize profitability.
■ EBITDA margin of 10% and annual EBITDA growth of 15%
over a business cycle.
■ At least 700 hotels by 2015, as a result of growing the
number of hotels by at least 40 properties annually, across all
brands.
Letter from the CeO
properties in operation/under development and revenue growth
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No. of hotels
61
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80
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100
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113
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127
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146
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■ Continually improving RevPAR penetration to become the
leader within our competitive set in every market we serve.
160
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CUSTOmERS
EmPLOyEES
RESPONSIBLE
BUSINESS
182
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200
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Group-wide revenue (MeUR)
247
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263
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■ To achieve 93% customer satisfaction and loyalty for each
brand in 2006, with year on year improvement.
■ To be the employer of choice by accentuating personal
development, career development and empowerment. For each
brand to achieve a consistent and improved level of employee
engagement/retention. To increase Rezidor SAS overall Climate
Analysis scores with 2 percentage points in 2006.
■ Maintain industry leadership in environmental performance
by continuing to increase efficiency per guest night at
property, brand and group level and ensure compliance with
corporate ethical and human rights standards.

More importantly, the agreement secured our
brand portfolio until 2052, extending the original
MFA by 20 years. It also ensures that the companies
align and grow the brands globally,
through loyalty and rewards programmes as
well as a commitment to re-energise service
delivery across all brands.
Initially a Carlson programme, Yes I Can! is the
driving mechanism of the genuine hospitality culture
that we have taken fully into our hearts. We
introduced Yes I Can! at Rezidor SAS 10 years
ago, and it has been at the core of our operation
ever since. It is our mission and vision alike. It is
our policy to hire by a Yes I Can! attitude and to
train our people in Yes I Can! scenarios, not only
In 2005, we increased our
supply by % in terms of
number of rooms. This is the
most significant organic growth
in the industry in europe.
frontline but on all levels and in all areas in the
company. Everyone in Rezidor SAS embodies
Yes I Can! and creates value in all the company
functions, in good times as well as bad.
In fact, we attacked the many challenges of
the economic downturn in the last couple of
years with our Yes I Can! approach.
“Yes I Can! secure a fifty percent profit conversion
of every revenue increase and all cost
savings.”
“Yes I Can! get more customer value out of
less resource consumption.”
The past years have made us very good at
cost management. I dare say that we are industry
leaders in this respect! However, from 2005,
we have shifted our focus to revenue generation,
while keeping costs on a very short leash.
In March 2005, we organized the Revenue Generation
conference in Berlin for Rezidor SAS
employees and partners to shift the whole company
into an accelerated growth phase.
To take full advantage of the upturn we relaunched
Yes I Can! by taking it to a higher level
of intensity and enthusiasm across all our
brands. A system-wide refresher training pro-
Letter from the CeO
gramme was rolled out in December 2005 and
will continuously be in action from now on.
Yes I Can! is about attitude – about Yes! Having
the right attitude is what makes Rezidor SAS
people different from everyone else. Not everything
is possible, but almost everything is. At
Rezidor SAS we do our utmost to make things
happen, to say Yes and mean it.
Yes I Can! – it’s personal. It’s about me as an
individual service provider. We never forget that
hospitality is delivered on a one-to-one basis
and it’s up to each of us to create that memorable
hospitality experience for our guests. This is
a personal responsibility. Our industry has now
become so sophisticated that sometimes it’s
easy to forget the very foundation of it all – to be
a good host. I can assure you that this will not
happen in our company.
Finally, Yes I Can! is about competence and
empowerment – about Can! To be able to actually
deliver you must not only know what to do,
how to solve the problem, but also be empowered
to make decisions to do the right thing in
the first place, or make it right if it is not. In 2003,
we reorganised the company, moving decisionmaking
as close to the customer as possible,
empowering front line staff to make the best out
of each situation, be it a good one or initially a
not so good one. Things go wrong, that’s the
nature of business, which is why service recovery
is a very important aspect of Yes I Can!
I’m very proud of how strongly we have managed
to reset our minds to Yes I Can! on an
even higher level. I’m confident that it will energise
all our brands and prove our commitment
to superior guest service and satisfaction.
Through Yes I Can! we constantly build on an
enthusiastic hospitality culture, that creates true
value for customers and owners alike.
The year 2005 showed healthy commercial and
financial development. The company generated
group wide revenue of MEUR 1.478, an increase
of 18%. Earnings Before Taxes (EBT) was MEUR
31 versus MEUR 4.2 in 2004. This includes MEUR
6.2 gain from the sale of shares of Radisson SAS
Hotel, London Stansted Airport. With this sale we
have divested all real estate and operate as a pure
hospitality management company.
The key driver of our financial development is a
11% growth in the company’s Revenue Per Available
Room (RevPAR). The European hotel market
as a whole continued to develop favourably with a
RevPAR increase of 4-5% on average, but Rezidor
SAS was able to capitalize on this growth by being
present in the right markets at the right time and
by doing the right things to maximise potential.
A multi-continental company with Scandinavian
roots, Rezidor SAS has a very strong presence
in Scandinavia. With the Nordic capitals
gaining strongest RevPAR in 2005, Rezidor SAS
has benefited significantly from the market recovery
in these regions. Despite the terrorist attacks
in London, the UK hotel market performed at 4%
increase in RevPAR over the last year. The Middle
East, Russia and Eastern Europe have shown
tremendous growth potential for revenue yield.
In 2006, the company will continue with its assertive
development strategy with an increased
focus on developing Russia, CIS, the Middle East
and East European markets while reinforcing a
strong presence in the home markets. In first
quarter of 2006, we opened eight new properties
for business and signed another 10.
I believe we have found the right rhythm in
our trading cycle with the ability to sustain and
even accelerate organic growth from existing
hotels, new properties won over one by one or
in portfolios, as well as newly-built hotels starting
to trade. That said, I certainly do not rule out
acting on bigger business opportunities that
may cross our path.
I’m very confident that the platform we have
built positions us well for future growth. The
right market conditions are there. The right initiative
is here.
Brussels, 30 March 2006
Kurt Ritter
A devoted Yes I Can! Rezidorite since 1976

Generating revenue! Rezidor SaS is one of the fastest growing hospitality companies in the world working rapidly
towards its goal of 00 hotels by 20 5. The company is aggressively growing new home markets, seeking out new opportunities
and taking full advantage of the market upturn while growing critical mass and facilitating behind the scenes efficiency.

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Your account will be credited with 20 Gold Points for every 1€ of qualifying spend at Radisson SAS hotels (10 Gold Points for every
1€ spend at Park Inn and Country Inn hotels) including your room and meals. So, with Award Nights starting from as little as 10,000
points you’ll soon have earned enough for your first free stay. And remember, you can book an Award Stay in EMEA* before having
accumulated the necessary points, so book now and earn later.
TIME IS THE MOST PRECIOUS COMMODITY YOU POSSESS. WE UNDERSTAND
THAT – WHICH IS WHY EVERYTHING WE DO IS DESIGNED TO HELP YOU MAKE
THE MOST OF EVERY MOMENT YOU SPEND WITH US – ON BUSINESS OR PLEASURE.
GOLDPOINTS PLUS IS OUR WAY OF THANKING YOU FOR TRUSTING US WITH
YOUR TIME.
Join goldpoints plus now and earn
time to spend on the things you love.
UK - Travel

The latest ad campaigns strongly deliver the
brand message that Radisson SaS hotels are
stylish, upscale, innovative, contemporary,
edgy, easy, friendly and unpretentious. With
targeted outdoor advertising on billboards
and in print media, Radisson SaS gives travellers
a sense of always being with them.

With tactical advertising, brand-specific imagery, coordinated
marketing programmes and strategic partnerships, Rezidor
SaS brings its brands to life and effectively educates customers
about how each brand meets their needs better than anyone
else in the market.
8

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even though europe saw an average
RevpaR growth of just –5%,
Rezidor was ahead of the market
with a RevpaR increase of %
due to being in the right markets at
the right time and by doing the
right things to perform optimally.

Restoring profitability in a Tricky Business environment
It was yet another banner year for Rezidor
SAS, a year that saw the financial results
taking a big jump towards reaching the
company’s overall goals. In 2005, Rezidor
SAS signed 29 new hotel contracts (15
Radisson SAS, 13 Park Inn and one lifestyle)
totalling almost 5,000 rooms. A bold
business development strategy resulted
in the opening of 21 new Park Inn and 16
new Radisson SAS hotels across Europe
and the Middle East. At the end of 2005,
the Rezidor SAS portfolio included 263
hotels, of which 46 are under development,
encompassing approximately 50,000 rooms
in 49 countries.
Rezidor SAS capitalised on strong market
demand and growth to have very favourable
results. In 2005, all key ratios including Occupancy,
AHR (Average House Rate), RevPAR
(Revenue Per Available Room), and GOPPAR
(Gross Operating Profit Per Available Room)
were well above the previous year.
FINANCIAL HIGHLIGHTS
Financials
CONTINUING TO PROSPER
In the year 2005, operating revenues, including
owned and leased hotels reached MEUR 587
(498,7); an increase of 17.7% Earnings Before
Tax (EBT) was MEUR 31. This result includes a
gain of MEUR 6.2 from the sales of the shares
of Radisson SAS Hotel, London Stansted Airport.
The key driver of this healthy financial development
is a 11% growth in the company’s
RevPAR.
RevPAR reached EUR 67 (61) and Earnings
Before Interest, Tax, Depreciation and Amortisation
(EBITDA) was MEUR 48,8 (27,2). This
positive development in 2005 is mainly due to
comparable units increasing EBITDA by MEUR
20,0 over 2004.
This was the eleventh year of consecutive
growth in terms of number of hotels and business
volume.
At the end of 2005, 217 (190) hotels were
under operation and 46 (57) were under development,
totalling 263 (247) hotels in 49 (48)
countries. The number of rooms in the reserva-
tion system were 43,900 (39,400) – an increase
of 11.4 (16)%. In total, 22,854 (18,642), fulltime
equivalent employees worked under the five
Rezidor SAS brands, 19,928 (16,400) of whom
worked for Radisson SAS.
Of the 217 hotels in operation, none (1) are
owned, 60 (49) are leased, 81 (66) are managed
and 76 (72) are under franchise agreements.
While lease or management operation is the
core business for Rezidor SAS, franchising is
playing an increasingly important role in reaching
critical market awareness. In addition, franchise
fees are a secure income source,
regardless of the health of the local economy.
Owned and leased hotels contributed to 89.6
(89.6)% of the operative revenue and the remainder
came from management and franchise
contracts as well as other income sources.
Room revenue accounted for 55 (53)% of the
operating revenue, and Food & Beverage revenue
accounted for 31 (31)%.
2005 PRO FORmA 200 pRO FORMa 200 2002 200
Group-wide revenue, TeUR ) 1,478,000 ,2 ,000 , 2 ,000 , 0 ,000 ,0 0,000
Operating revenue, TeUR 587,046 8, 28 8 , 8 , 5 ,
eBIT, TeUR 34,987 , 22 –2 , 50 ,0 8 2 , 22
Financial items, net, TeUR 487 – , – ,0 8 – ,80 –2, 5
Net income, TeUR 26,448 ,5 2 – 2,5 ,8 ,
eBITDa Margin % 8.3 5.5 – .0 .2 –
eBIDTa, Growth, %* 179.4 2 .2 – 8 – –
equity, TeUR ) 158,520 28, ,52 ,8 0 , 20
Balance sheet total, TeUR 364,433 8 , 2 2 , 2 , 0 28 ,88
Dividends paid, TeUR 2) 0 , , 8 , ,
Total investments, TeUR
key ratios
34,605 5 ,828 5 ,280 0, 8,
profit Margin %, (GOp %) ) 35 0
Return on capital employed %
) Including minority interest, following IFRS.
12.2 . – . 8. .
2) Group Contribution in Norway in 200 , 200 and 2005.
) Gross Operating profit (GOp), including leased and managed hotels.
) Revenue in leased, managed and franchised hotels.
* pro forma for 2005 and 200 – prior years are also prepared in accordance with IFRS.
2

GETTING AHEAD OF THE mARkET
In the year 2005, the European hotel market
continued to develop favourably with a RevPAR
increase of 4–5% on an average. With a 11%
increase in RevPAR, Rezidor SAS has been able
to capitalize on this growth due its strong presence
in Scandinavia. Nordic capitals gained
strongest RevPAR in 2005: Copenhagen
+19.4%, Oslo +13%, Stockholm +10.2% and
Helsinki +9% and Rezidor SAS benefited significantly
from the market recovery in these regions.
Despite the terrorist attacks in London,
the hotel market there performed at 4% increase
in RevPAR over the last year. The Middle
East continues to perform at a mixed pace,
while Russia and Eastern Europe have shown
tremendous growth potential for revenue yield.
Occupancy for comparable unites increased
to 70 (65)% due to an increase in demand and
rates. AHR went up to EUR 99 (95), and RevPAR
rose by EUR 67 (61). As a result, the Gross Operating
Profit (GOP) margin increased to 35
(34)%. The GOP, the total operating revenue
minus operating expenses, is the basic operation
efficiency indicator.
Rezidor SAS maintained a RevPAR advantage
after taking operational efficiency into account,
with a GOPPAR above the industry average.
OPERATIONAL PROFILES
22
RADISSON SAS
By the end of the year 2005, 147 (138) Radisson
SAS hotels were in operation, offering 33,287
(31,400) rooms through the reservation system.
In addition, 32 hotels are under development.
Group-wide Radisson SAS revenues including
owned, leased, managed and franchised
hotels, reached MEUR 1,242 (1,095) in 2005.
operating revenues for owned and leased hotels
rose to TEUR 460.3 (406.6). Revenues from
comparable units increased by 13 (0.8)%. The
GOP margin increased to 37 (34)% in 2005 for
owned, leased and managed hotels.
Occupancy for comparable units increased
to 70 (65)%, due to increase in volume, both in
the business travel and meetings and events
segment. RevPAR increased to EUR 72 (63)
and AHR rose to EUR 102 (97).
PARk INN
Financials
At the end of the year 58 (40) Park Inn hotels were
in operation, representing 8,728 (6,300) rooms in
the reservation system. Park Inn grew by leaps
and bounds in 2005, establishing its presence in
the UK, Germany and France. In addition, 10 (18)
Park Inn hotels are under development.
Group-wide revenues for Park Inn, including
leased, managed and franchised hotels reached
MEUR 173.6 (102.0) in 2005. Occupancy was
at 56.5 (56.7)% and RevPAR was EUR 36 (32),
while AHR reached EUR 64 (57). The GOP for
leased and managed was 35 (32)% in 2005.
COUNTRy INN
At the end of the year, 6 (6) Country Inn hotels
were in operation, representing 515 rooms in
the reservation system. Group-wide revenues
for Country Inn, including leased, managed
and franchised hotels, reached MEUR 13.6
(13.5) in 2005.
REGENT
At the end of 2005, 3 (3) Regent hotels were in
operation offering 703 rooms in the high-end
luxury market segment. Group-wide revenue for
Regent, including leased, managed and franchised
hotels was MEUR 25.9 (18.0) in 2005.
BY DeC , 2005 REzIDOR SAS RaDISSON SaS paRK INN COUNTRY INN ReGeNT MISSONI
Number of hotels 263 8 *** 8 2
Number of hotels in operation* 217 50*** 58 0
Number of rooms 43,900 , 8 , 0 –
Number of rooms currently trading* 33,354 , 8 5 0 0
Countries of operation* 48 0 0
Occupancy**, % 70 0 5 – – –
aHR**, eUR 99 02 – – –
RevpaR**, eUR 67 2 – – –
GOp**, % 35 5 – – –
* Including franchise hotels
** Not including franchise hotels
*** Includes unbranded hotels

UNIT COST DEvELOPmENT, 2001– 2005
RezIDOR SaS, eUR
60
50
40
30
20
10
REvENUE PER AvAILABLE ROOm, 2001– 2005
RezIDOR SaS, eUR
80
70
60
50
40
30
20
10
GROUP-wIDE REvENUE, 2001– 2005
RezIDOR SaS, TeUR
1,500
1,200
900
600
300
01
01
01
02
02
02
03
03
03
04
04
04
05
05
05
Financials
NUmBER OF ROOmS, 2001– 2005
RezIDOR SaS, GROUp-WIDe
50,000
40,000
30,000
20,000
10,000
01
02
OCCUPANCy, 2001– 2005
RezIDOR SaS, peR CeNT
80
70
60
50
40
30
20
10
01
02
03
03
GOP PERCENTAGE, 2001– 2005
RezIDOR SaS, peR CeNT
40
35
30
25
20
15
10
5
01
02
03
04
04
04
05
05
05
2

Operations
Building excellence from the Bottom Up
De-centralisation has been the main focus
for Rezidor SAS for the past couple of
years as rapid growth and the need to
support expansion has made it vital to increase
hotel autonomy and accountability.
Rezidor SAS has evolved from being
a top-down company to becoming a
bottom-up company with every General
Manager carrying full responsibility for his
or her hotel.
A new operations structure, headed by Executive
Vice President and Chief Operating Officer,
Werner Kuendig, was introduced in 2005 to
strengthen decentralisation and empowerment.
This new structure is supported by the Corporate
Sales, Marketing, Finance & Accounting,
Revenue Development, People Development,
Safety & Security and Future Openings departments.
The goal is to streamline hotel operations,
offer support to increase revenue and
maintain a high standard of quality and customer
satisfaction.
OFFERING SUPPORT
– THE BIG REORGANISATION
General Managers are supported by Regional
Directors and Area Vice Presidents, who work
closely with the COO to define strategies and
develop tools designed to increase revenue and
optimise operations.
Hotels propose their own revenue goalsbased
on local parameters. Once the revenue goals are
accepted by the head office in Brussels, hotels
decide on how best to reach those targets.
Hotels now determine locally the best course
of action in terms of sales and marketing and
are supported in their efforts by the regional and
corporate offices. The marketing and sales
teams offer brand guidelines and support the
hotels by helping to create advertisements, brochures
and other print and online collateral.
Hotels are given communications and public
relations support from regional PR teams that
work closely with the Area Vice Presidents and
Regional Directors. The local Global Sales Office
help hotels by going on targeted sales calls,
2
while the distribution team looks for various online
opportunities to promote individual hotels
and drive revenue.
NEw OPENINGS
A dedicated team, which is part of the Brusselsbased
operations together with their respective
Area Vice President/Regional Director facilitates
and coordinates the entire pre-opening process.
The main aim of this team is to open all new
hotels, whether new builds or conversions, on
time, on budget and with all key executives well
placed and well trained.
The Directors of Revenue Development
(DRDs) together with their respective Regional
Directors/Area Vice Presidents are responsible
for the efficient launch of hotels in terms of identifying
and optimising revenue opportunities
with the help of established tools and checklists.
New hotel profiles, fact sheets and hotel
web content is created based on market studies
conducted by DRDs, and this collateral is
then distributed to the Global Sales Organization
(GSO). The GSOs then start driving sales
long before the hotel opens its doors.
For new openings, the corporate and regional
team is responsible for managing the pre-opening
budget, room configuration and defining the
scope of work in order to manage the overall
development of the project. This includes regular
interaction and dialogue with the technical
development and regional operations team.
Conversions on the other hand require extensive
employee training and coaching, and support
for the General Manager, Director of Sales
and Revenue Manager. The main focus in a
conversion is on transforming the hotel into a
true brand representative.
TOOLS FOR SUCCESS
Rezidor SAS pays special attention to the
needs of hotels that are performing below par.
The operations team follows up with these hotels
every month and coaches the hotel General
Manager on a regular basis to keep
communication lines open and offer help and
tools to increase revenue.
Part of this process includes the creation of an
Activity Plan by the General Manager of the
hotel to raise the Gross Operating Profit (GOP)
by an achievable percentage. The Regional Director
and Area Vice President work closely with
the General Manager to ensure success.
The Director of Revenue Development in
each region is responsible for sustaining and
supporting revenue generation. Tools provided
to each hotel include a checklist, a best practices
guide, profiles and fact sheets to help revenue
development.
ALL ABOUT QUALITy
The Quality Performance Review (QPR) Programme
aids the consistent delivery of the
brand promise. The QPR involves quality inspections
and has been developed around specific
brand service and operating standards. It
focuses exclusively on the customer experience
in relation to product, service and brand. The
QPR is performed by an impartial consultant
who uses a checklist to inspect specific areas
of the hotel with a focus on ensuring the continuous
adherence to the Yes I Can! culture.
The QPR monitors basics such as the checkin
experience, the quality and service of the restaurants
and bars, hotel security, meetings and
events facilities and the check-out experience.
The consultant also reports on the overall cleanliness,
maintenance and repair, interior décor
and design plus the service and friendliness of
hotel staff.
The QPR goal for both Radisson SAS and
Park Inn was set for 85 for 2005. Both brands
effectively achieved the required target and the
company plans to raise the bar in upcoming
year/s, by setting the goal to 87% for both
brands in 2006.
Hotels that scored below 85 are required to
develop a Management Action Plan (MAP) to
rectify issues and report to the relevant Regional
Director/Area Vice President, who in turn are
responsible for follow up. Information regarding
QPR, including reports, check lists and brand
information are available on the company’s intranet
library for reference.

Quality is all about exceeding expectations,
again and again! From Berlin
to Beirut and Copenhagen to Cape
Town, all Radisson SaS hotels offer
a consistently high level of service
and put a high emphasis on quality.

Taking advantage of the Market Upturn
Throughout 2005, the hotel industry, in
general, faced a number of challenges,
including natural disasters and the continuing
threat of terrorism. Hotel performance
remained resilient despite these
events and any adverse effects they had
on trading were short lived. RevPAR continued
to record positive growth throughout
the year across Europe, the Middle
East and Asia. International visitor arrivals
rose during 2005 and are expected to increase
in the coming years.
Hotels in the Middle East posted a hugely impressive
RevPAR growth of 21.4%. Hotel performance
across Asia slowed during 2005: the
region recorded a healthy increase in RevPAR of
9.1%, but this is a far cry from record-breaking
results achieved in 2004, when RevPAR grew
by 25%. In Europe, growth was steady and the
average RevPAR was up by 4–5% on average.
The enlargement of the European Union created
new opportunities for the hotel and travel
industry, with a high demand for quality accommodation
in the new member states. Hotel
branding is expected to grow across all categories
with a strong focus on mid-scale brands in
Eastern Europe. A common currency and borderless
Europe, coupled with the perception of
safer tourism are expected to foster hotel revenues
and increase tourism from countries like
India and China that are experiencing an economic
boom.
Rezidor SAS anticipates that hotel performance
across the Middle East and Asia will race
ahead in 2006, while trading across Europe will
remain steady. As the hotel industry begins to
consolidate and new brands enter the market,
a steady but sustainable growth in business
performance is expected to help keep the industry
moving in the right direction during the
coming year.
STRONG SCANDINAvIA
Scandinavian hotels top the growth in Europe
for 2005 as the region saw RevPAR growth of
6.7% with Copenhagen recording the highest
growth at 19.4%, followed by Oslo that saw a
2
Markets
13% growth in RevPAR and Stockholm where
RevPAR increased by 10.2%.
Oslo also recorded the highest growth in occupancy
in 2005, with an 11.5% increase to
68%. The potential for growth in Scandinavia is
for mid-market hotels, with limited growth for full
service hotels. Norway is a very mature and
consolidated hotel market with the major brands
already established as the big players.
Copenhagen is the most international market
in Scandinavia, although there is a strong variation
in demand with peak seasons in the summer
and a low season in the winter. Any
expectation of price increase is limited in this
region where there is, currently, no dominating
market leader.
Unemployment is still a considerable problem
in Sweden and the social system is being financed
by high taxes to reduce the official unemployment
numbers. In Sweden, as is in the
rest of Scandinavia, growth will be seen in the
mid-market brand with opportunities for portfolio
deals.
UP AND UP Uk & IRELAND
The UK hotel market recorded a 4% RevPAR
growth in 2005. While there were fluctuations in
the fortunes of hoteliers around the country, the
overall improvement in annual room yield clearly
demonstrates the strength and resilience of both
London and regional hotel markets.
London recovered remarkably quickly from
the July bombings to remain at the head of European
performance rankings in terms of overall
RevPAR, but the fact that the rest of the UK
grew almost twice as much highlights the terrific
performance of hotels in destinations such as
Gatwick, Aberdeen and Liverpool.
Nine UK destinations dominated the top 10
European occupancy table and included
Heathrow, Gatwick, Edinburgh, Manchester,
London, Cardiff, Newcastle, Bath & Bristol, and
Glasgow.
However, the buoyancy of the UK economy
is expected to marginally slow down in the coming
years. The Bank of England is considering
lowering interest rates in order to encourage
customer spending and retail sales. But the
property market is at the top of the cycle with
yields dropping to their lowest levels for the last
five years.
Despite a plethora of new supply, the Irish
economy in general, and the Irish hotel business
in particular, continue to perform surprisingly
well.
EmERGING EASTERN EUROPE
Hotels in Eastern Europe can be proud of their
performance in 2005, as RevPAR increased
12.5%. With the continued lack of internationally
branded hotels and increasing demand,
there seems to be no end in sight in the growth
of average room rates in the big cities. In Warsaw,
RevPAR grew an impressive 15%, driven
primarily by increasing demand. An increase in
the number of low-cost airlines servicing the city
continues to bring in more tourists and consequently
the supply demand imbalance that has
existed for the last few years is finally being
redressed.
In addition, Hungary, the Czech Republic and
Slovakia are also expected to experience strong
economic growth in the coming years. A marked
increase in prosperity is also predicted in the
Baltic countries. Bulgaria is preparing to become
a member of the EU in 2008 and is poised
for growth across all industries. Expansion is
also expected in key destinations such as Sarajevo,
Ljubljana, Montenegro, Dubrovnik and
Belgrade.
Though existing hotels are doing well in the
region and will continue to do well, the road to
expansion in Eastern Europe is made somewhat
bumpy by the emergent nations’ underdeveloped
legal systems and high levels of
bureaucracy.
CRISP CENTRAL EUROPE
Most large European countries showed positive
results in 2005, with performance indicators
generally on the rise. The economic downturn
faced by the EU15 countries, especially Germany,
France and the Netherlands is starting to
reverse.
Economic growth was moderate in Germany
in 2005, as the German elections led to a wait-

and-see policy by many leading economic players
over the third quarter. But now in the spotlight
as host nation to the 2006 World Cup, Germany
is enjoying a stable political situation and is
showing a slight improvement in performance.
SOmBRE SOUTHERN/mEDITERRANEAN
EUROPE
Southern Europe was the weakest performing
region during 2005, with no RevPAR growth. Its
performance was dragged down by the significant
RevPAR declines in both Lisbon and
Athens. Both cities hosted major sporting
events in 2004 and naturally could not sustain
this performance during 2005.
A number of Spanish cities are suffering from
over-supply and as a result the country only reported
a very modest RevPAR growth of 1.3%.
In 2006, in the four-star plus segment, RevPAR
is expected to increase due to a rise in occupancy,
while in the mid-scale segment, any increase
will come from a rise in room rates.
The strength of the individual business travel
sector in France has helped compensate for the
drop of the leisure clientele and the lack of any
real movement in the seminars sector. Turkey
and Greece continue to offer great potential, although
the political instability in both countries
creates difficult trading environments.
mAJESTIC mIDDLE EAST
The Middle East once again exceeded expectations
by recording solid growth in 2005. Diverse
and changing economic development show
high GDP growth in Qatar, Bahrain and Kuwait.
Middle East travel and tourism, growing nominally,
is expected to increase by 4.4% per
annum from 2006 through 2015.
Governments are encouraging industries and
services to reduce dependence on oil and drive
revenues through other sources. Tourism is playing
a major part in this effort to diversify, especially
in Dubai, Oman and other main feeder markets.
Dubai is slowly claiming the spot as one of the
top tourist destinations in not just the Middle
East, but the world and the hotel business in the
city is booming. The future is, however, difficult to
predict, due to instability within the region.
ROARING RUSSIA
Moscow performed exceptionally in 2005, with
a RevPAR increase of 30.4%. The Russian travel
market remains lucrative with the number of outbound
travellers reaching more than 20 million in
2005; Russians purchased approximately two
million package holidays during the year.
As Russians continue to gain additional disposable
income, the potential of the vast Russian
market continues to expand and the speed
of development will prove crucial to financial
success. Russia is encouraging private investment
through economic reforms, liberalisation,
privatisation and greater transparency.
However, government bureaucracy and inconsistencies
in the rule of law have the same
adverse effect on expanding business in Russia
as they do in Eastern Europe.
AmAzING AFRICA
A number of African countries are on a healthy
path of growth and recovery. The highest GDP
real growth was seen in Equatorial Guinea, Angola,
Morocco, Tunisia and Tanzania. The cur-
The hotel industry in Stockholm
did extremely well in 2005 with
a 0.2% increase in RevpaR
– the coming year promises to
be just as good.
rent unstable situation in the Middle East means
that West Africa is becoming an increasingly
important source of gas and oil. In many countries,
the upward shift in both manufacturing
and services is supported by diamond trading
and government-sponsored economic reforms
that attract foreign investments.
Other destinations such as South Africa, Seychelles,
Kenya, Tanzania, Morocco and Tunisia offer
good, if limited, tourism potential and leisure traveller
arrivals have increased in the sub-Saharan regions.
Internationally branded hotels are achieving
higher occupancies, rates and GOPs than in Europe.
The vast majority of African accommodation
is unbranded and offers great potential for hotel
development and brand coverage.
However, Africa is perceived as having low
safety and security, which limits business and
leisure travel. The continent suffers from corruption
in certain countries and a lack of adequate
infrastructure. Other challenges faced by the
hospitality industry include mobilization of
project financing and restriction on the import of
equipment and materials.
2

Redefining lifestyle hotels! Rezidor SaS is ready to make its mark in the lifestyle hotel market with its new,
bold, highly contemporary Missoni brand. In 2005, Rezidor SaS entered into an agreement with the famous fashion house to
develop and launch Missoni Hotels. The lifestyle hotels will interpret the current Missoni look of their iconic home-ware range
and will develop this into the next phase of lifestyle hotel design.

Instantly identifiable, rich in colour, vibrant in
texture! Missoni is not just a creation to fit a
short-term marketing opportunity, but a historic
brand with a great story. Three generation
of Missoni women have stayed faithful to
the deep emotional roots of the brand and
are committed to doing the right things for
its longevity and success.
0

Brands
Building Brands, Boosting Business
A multi-brand organisation, Rezidor SAS
offers hotel brands that meet the needs
of every type of traveller, whether they
are looking for the ultimate in luxury at a
world-class hotel or simply seeking a
good night’s sleep in a fresh and clean
hotel. Rezidor SAS guests are guaranteed
a consistent standard of service all
over the world from Europe and the
Middle East to Africa.
2
REzIDOR SAS, BRAND POSITIONING
luxury
first class
mid market
economy
budget
Formule 1
Rezidor SAS brands are carefully positioned,
both in the company’s portfolio and in their global
competitive set, to create maximum portfolio
and market dynamics. All brands have a
distinctive personality and every new hotel in
each brand helps carry the baton of individual
brand identity one step further.
To guard against brand confusion, all brands
are meticulously and strictly defined with brand
manuals and other brand identity collateral to
secure strict brand control. In addition, quality
assurance inspections follow up on individual
hotel compliance and the audits involve hotel
visits to monitor quality and performance, according
to pre-defined service criteria.
Ibis
Park Inn
Country Inn
Holiday Inn
Novotel
Scandic
Rezidor SAS, at the corporate level, also has
defined core values and developed graphic
guidelines. The multi-brand sales team uses
multi-brand sales collateral, which include the
Rezidor SAS World Wide Directory, a Rezidor
SAS Meeting Planner Guide and brochures for
the marketing and business development
departments.
All Rezidor SAS brands share a positive service
attitude and have a strict focus on safety and
security for guests and employees alike. This is
the foundation of the company’s strong commitment
to the environment, local community
and the Rezidor SAS Responsible Business
programme.
missoni
Four Seasons
Regent
Inter-Continental
Radisson SAS
Hilton
Marriott
Sheraton
minimum service limited service full service

Rezidor SaS offers an impressive
selection of hotel
brands, designed to suit a
variety of budgets, requirements
and occasions.

Brands
Radisson SaS defines the New Breed in hotel architecture and design as it scales
new heights with spectacular properties. From the aquaDom in Berlin to the
fabulous architecture of the new hotel in Frankfurt, Radisson SaS distinguishes
itself as a contemporary and progressive, first class hotel brand.
at Radisson SaS, the Yes I Can! service culture means treating every guest as a true
individual. By combining attentive one-to-one hospitality with clever service concepts
– most of them focusing on choice and making the stay easy – Radisson SaS offers
a unique service experience which truly celebrates individuality.
Country Inn is the hotel of choice for travellers looking for a cosier and homely
experience as well as great value for money. Combining all the consistencies and
standards expected from a major international hotel brand with all the comforts
of home is the Country Inn way.
Country Inn hotels are all about fireplaces in the hall, comfortable lounges, relaxing
rooms and an all-embracing country hospitality that meets and greets each guest
the moment they walk into the hotel.
Contemporary in style and culture, Missoni hotels will put a great emphasis on
design, plus certain key hardware and software elements, including – but not limited
to – bars and restaurants, bathrooms and the service culture.
Missoni is one of the very few fashion houses with a truly unique and identifiable
image and the hotels will interpret the look currently exemplified by the iconic Missoni
design. Missoni hotels will target well-travelled, stylish individuals who are willing to
pay for an experience that is reflective of how they see themselves and their values.
park Inn hotels focus on offering hospitality essentials better than anyone else in the
same market. Spotlessly clean, easy and safe, park Inn hotels are youthful, colourful,
energetic and fun with a warm and relaxed Yes I Can! approach to service. The brand
is deeply committed to providing the key essential of any hotel experience, a good
night’s sleep.
a value-driven and flexible concept with the most striking new brand identity in the
current hotel market, park Inn promises to be the best in its class, the hotel of
choice in the mid-market segment.
The brand heritage of Regent is one of unashamed luxury for all the senses. Regent
follows its unique Tao, drawing service inspiration from the Far east: to serve others
is to serve oneself, to hear without being told, to see without being shown and to
know without being asked.
Regent guests are a special breed of truly discerning and cosmopolitan individuals
who value superior hospitality and timeless traditions. They choose Regent for
business and pleasure knowing they are guaranteed a highly personalised level of
world-class service from employees with a passion for excellence and the greatest
attention to detail.
Rezidor SAS also has 4 unbranded hotels in its portfolio.

Number of hotels:
179
Number of hotels:
2
Brands
Number of hotels:
6
Number of hotels:
4
Number of hotels:
68 58
5

Marketing, Sales & Distribution
Creating accessibility In all Channels
Marketing brings brands to life and this
life-giving marketing operation at Rezidor
SAS is both aggressive and proactive. By
implementing strategic and tactical advertising,
co-ordinated marketing programmes
and strong partner relationships,
the company and its marketing staff embodies
the key Rezidor SAS message of
delivering positive brand associations
through strong customer service and an
indelible Yes I Can! spirit.
100% GUEST SATISFACTION
GUARANTEED – RADISSON SAS
The Radisson SAS advertising campaign
launched in 2005 used a combination of contemporary
illustration with photography, suggesting
rather than promising. The campaign
strongly delivered the brand message: Radisson
SAS hotels are stylish, upscale, innovative, contemporary,
edgy, easy, friendly and unpretentious.
The goal of the campaign was to increase
brand awareness, achieve maximum exposure
and change the buying behaviour of the business
traveller.
Well-targeted billboard advertising, coupled
with a print advertising campaign, gave travellers
the sense that Radisson SAS was always
there, with them and for them. In 2006, the
Radisson SAS image campaign will focus on
Free Broadband, a new and unique service
concept offered by all Radisson SAS hotels
since the end of 2005.
Individual Radisson SAS hotels are using the
new creative style as an integral part their own
tactical advertising, with an emphasis on the
leisure market. Advertisements were also
placed in magazines usually not used to advertise
the Radisson SAS brand; a shock tactic to
jolt travellers out of any preconceived notions
and help them reassess the Radisson SAS
brand in a whole new light.
The unique service concept of Yes I Can! sets
Radisson SAS apart from its competitors. It
stands out in a crowded market and changes
attitude, attracts attention and alters buying
patterns.
SLEEP wELL. LIvE wELL. – PARk INN
The Park Inn philosophy of offering the very best
service and accommodation in its market sector
has made it a genuine up-and-coming
brand. Park Inn’s appeal is generally local and in
autumn 2005, Park Inn ran an extensive regional
image campaign to increase brand awareness,
using different marketing tactics in different
regions.
In Germany, a major outdoor campaign was
launched to cover the entire tram network with
Park Inn branding, while viral e-mail marketing
was very successful in Sweden. In the UK,
advertisements were placed on the Heathrow
Express and proved successful in further establishing
the Park Inn brand.
LUxURy FOR ALL THE SENSES – REGENT
In 2005, Rezidor SAS invested aggressively in
promoting the Regent brand as a world-class
international luxury hotel. Regent hotels in
Berlin, Zagreb and Almaty share the same feeder
markets and generic advertising and PR
campaigns were implemented in the UK, the US
and Germany. High-end travel and lifestyle
magazines in these regions helped promote the
Regent brand with advertorials and editorials.
On the public relations front, the big coup was
when influential magazines such as Condé Nast
Traveller and BA’s High Life magazine ran articles
about the Regent brand in Europe. Regent also
sponsored the Condé Nast Traveller Awards in
the US, a two-day event that allowed Regent to
convey its brand message to 150 top North
American travel agents. With the help of PR
agencies in the US, UK and Germany, along with
exposure in luxury travel magazines, Regent
continues to establish its position as a highly desirable
up-scale brand with impeccable service.
AT THE CLICk OF A mOUSE
– E-COmmERCE & DISTRIBUTION
Easy to find! Easy to book! That’s the focus of
the Rezidor SAS e-commerce and distribution
strategy. The goal is to earn the trust of guests
by offering them a consistent buying experience,
relevant information and credible rates –
which, the company believes, is the only way to
drive business and get repeat business.
In 2005, search engine optimisation, keyword
buys, pay-per click advertising, plus paid placements
for brand websites and individual hotel
websites helped drive traffic and increase online
bookings. Web-sourced room nights went up
by 68% in 2005, including bookings from third
party websites and brand websites.
The Meetings, Incentives, Conferences and
Events (MICE) segment was a key focus for the
distribution team for 2005. In support of this, a
dynamic meeting facilities search engine was
launched, both on the Radisson SAS brand
website and on individual hotel websites. Quick
and easy to use, this tool enables meeting-planners
to match their precise business needs to
the right Radisson SAS hotel.
For the travel trade, Rezidor SAS continues
to leverage the strengths of Look To Book , a
unique, online loyalty programme for travel
agents booking through systems such as
Amadeus and Galileo. This programme allows
members to earn points that can be redeemed
for a wide range of awards. The scheme provides
a platform for targeted marketing communication
and system-wide offers that
currently reach over 250,000 members worldwide.
In 2005, Look to Book enrolled agents
generated more than MEUR 56 in revenue for
Rezidor SAS hotels. This figure is up 14% from
the year before.
OF mICE AND mEN!
A STORy ABOUT THE GSO
The Rezidor SAS Global Sales Office follows
one simple, golden rule: get the right people in
the right places. In order to achieve this, the
GSO changed structure to become more consolidated
throughout Europe and brought the
Scandinavian market under one GSO. To help
capture more of the American market a GSO
was opened in the United States, which proved
to be very successful. In 2005, the US outbound
business to Europe – mainly booked through
travel agencies and online partners – increased
room bookings by 44%.

Marketing, Sales & Distribution
In 2005, search engine optimisation,
keyword buys, pay-per click advertising
plus paid placements for brand
websites and individual hotel websites
helped drive traffic and increased online
bookings by 8%.
Currently, there are 52 sales people in seven
offices, each dedicated to offering complete
support to individual hotels. Each region has its
own GSO team focused on top national and
international key accounts in all relevant segments.
Their primary role is to sell and co-ordinate
client events within their region and market.
mEETINGS, INCENTIvES, CONFERENCES
AND EvENTS (mICE)
The focus for 2005 was largely on MICE. The
sales force aggressively pursued this market
and increased its share of the overall revenue to
20% (17%) in 2005. To help achieve this positive
result, the company launched the Weekly MICE
Challenge of acquiring MEUR 1 business every
week. The GSO met this challenge and business
worth MEUR 50 was confirmed in 2005.
A broad range of innovative sales tools were
launched to aid the sales process and boost revenues
for products and brands. Important new
sales tools included the Rezidor SAS Meetings
Facilities Directory, the Rezidor SAS World Wide
Directory, and individual brand brochures.
These new tools promoted MICE extensively
and the weekly MICE reports gave sales forces
across the company an incentive to become
even more competitive. MICE sales rose as a
result of these efforts in key growth markets, including
UK, France and Germany.
Park Inn launched Colourful Meetings in the
first half of 2005 in Europe. The campaign had
two goals. The first was to develop guidelines to
ensure consistent service delivery and minimum
standards across the brand. The second was to
define a communications concept and unique
client offering. Colourful Meetings offers four
types of meeting themes, each with flexible and
creative elements to help guests create their
perfectly customised meeting or event. Colourful
Meetings has proved to be an excellent sales
tool and a great communication platform. Efforts
to promote Colourful Meetings will continue
throughout 2006, with new tools, including a
Best Practices Guide that will help hotels offer
ever more innovative meetings options.

zero to 8 in three! park Inn has seen rapid growth in the past three years, mainly through cluster
conversions such as the take over of nine Queens Moat House hotels across the length and width of the UK in late
2005. park Inn growth will follow the successful pattern of Radisson SaS with greater penetration in home markets
and further expansion into Northern european markets.

0
Focusing on mastering the essentials, park
Inn offers an affordable hotel experience
that’s warm and casual, spotlessly clean,
easy to use, safe and fun. But above all else,
park Inn strives to provide ”the best sleep in
town” and that’s what makes them stand
apart from the crowd.

Rezidor SAS is one of the fastest growing
hospitality companies in the world with a
range of clearly differentiated hotel brands
offering excellent investment opportunities.
Rezidor SAS offers a broad spectrum
of solutions that are designed to meet the
needs of each individual hotel owner. The
options available range from lease and
management agreements to franchise
agreements.
BRAND NEw!
Rezidor SAS opened 37 (28) hotels in 2005,
increasing the total number of hotels in operation
and under development to 263 across 49
countries in Europe, the Middle East, Africa
and Asia.
In 2005, Rezidor SAS signed contracts for 29
(50) new properties. At the end of the year, Rezidor
SAS had 66 leased, 117 managed, and 80
franchised properties. Of the hotels in operation,
147 hotels were Radisson SAS, 58 were
Park Inn, three were Regent, six were Country
Inn and three remain unbranded.
DEvELOPING THE RADISSON SAS BRAND
In 2005, several groundbreaking Radisson SAS
hotels were opened. The most notable example
was the Radisson SAS Hotel in Frankfurt, a superbly
impressive landmark property that exemplifies
the New Breed of Radisson SAS design.
The elegant Radisson SAS Media Harbour
Hotel in Düsseldorf follows in the spectacular
design style of the New Breed.
The boutique-style Radisson SAS 1919 Hotel,
Reykjavik opened in 2005, as did the charming
Radisson SAS Hotel, Paris-Boulogne which is
just 10 minutes from the Eiffel Tower.
Hotels were also opened in destinations such
as Kiev, Dubai Media City, Jeddah, Hasselt, and
Rostock. New resorts with strong appeal for the
leisure traveller were opened in Les Arcs, El Quseir
and Malta. The hotel in the Disneyland Resort,
Paris, the hotel and spa in Cork and the hotel on
the Bosphorus in Istanbul will cater for both the
business and leisure market.
2
properties
The Building Blocks of Success
GROwING THE PARk INN BRAND
The expansion of Park Inn will focus on city centre,
suburban locations and transport terminals.
Strategic growth is planned in Scandinavia,
Germany, France, Benelux, Switzerland, UK/Ireland
and Russia. Growth in key destinations is
anticipated with newly-built flagship properties,
but the bulk of the growth is expected from franchising
and conversions.
Park Inn grew by 21 hotels in 2005, mostly
due to the franchise agreement for a portfolio of
seven hotels in Germany—previously operated
under a Holiday Inn franchise—and the conversion
of nine Queens Moat House Hotels in the
United Kingdom. The Park Inn Hyde Park was
another strategic opening in 2005 and Park Inn
also opened hotels in Baku, Azerbaijan and
Ekaterinburg, Russia in early 2006.
GIvING BIRTH TO A LIFESTyLE BRAND
In 2005, Rezidor SAS entered an agreement
with the famous fashion house Missoni to develop
and launch Missoni Hotels. Rezidor SAS
chose Missoni because it is one of the few fashion
houses with a truly unique and identifiable
look. The lifestyle hotels will interpret the Missoni
look of their highly individual and iconic homeware
range and will develop this style into the
next phase of lifestyle hotel design.
Missoni intends to make a significant mark in
the lifestyle and boutique hotel market, with 30
hotels in the next ten years.

PROPERTy mAINTENANCE
Extensive renovations of Radisson SAS hotels
were done in an effort to upgrade the properties
to New Breed levels defined by new hotels in
Frankfurt, Paris, Düsseldorf and Dubai.
At the Radisson SAS Scandinavia Hotel,
Gothenburg, all 246 bedrooms and suites were
renovated in Ocean and Chilli styles, as were
the three corridors that lead guests to their
rooms.
The kitchen and first floor conference facilities
were upgraded at the Radisson SAS Arlandia
Hotel, Stockholm; while 78 rooms at the
Radisson SAS SkyCity Hotel were renovated
in Ocean style.
The Radisson SAS Royal Viking Hotel, Stockholm
was reinvigorated with extensive renovations
of 18 Junior Suites in Urban style, and of
the swimming pool and gym.
DEvELOPmENT STRATEGy
Radisson SAS will see growth mainly through contracts
with financial commitments in mega, capital and secondary
cities and by joint ventures in emerging markets. The
Radisson SaS brand will see growth in city centres, airports
and resorts in mass tourism destinations. Russia and
France will be developed as home markets, while strategic
growth is planned for southern and eastern europe as well
as in the Middle east. Radisson SaS hotels will enter new
markets through capital and/or major cities only.
Regardless of size, every Country Inn hotel has the charm
and service values of a small, family-run hotel. The brand
has a narrowly-defined concept that has a broad appeal and
is an attractive option for newly built properties, especially
in off-centre locations in major and secondary cities.
Franchising forms the core of the Park Inn growth strategy,
but management and lease contracts are also considered.
park Inn has developed the industry’s most cost
effective conversion package for rapid expansion. The
properties
About 98 rooms at the Radisson SAS Norge
Hotel, Bergen were renovated in Urban style; full
renovations of 144 rooms in Ocean style, including
bathrooms and six guest floor corridors
were done in the Radisson SAS Scandinavia
Hotel, Oslo.
At the Radisson SAS Plaza Hotel, Oslo, 607
rooms were renovated in Milan Chic and Plaza
room style, the 66 remaining rooms will be renovated
by the end of 2006. Construction of the
new annex of the Radisson SAS Gardermoen
Hotel began in 2005 and is expected to be
completed in early 2007. The entire conference
area of Radisson SAS Hotel, Bodø was updated
in January 2005 and the renovation of the lobby
area and most of the rooms is scheduled to be
finished by fall 2006. The Radisson SAS Hotel,
Tromsø is going through extensive renovations
of most guestrooms and some of the public
areas; and a new building is in construction as
well, which will house the reception, the conference
area and the lobby bar.
At the Radisson SAS Hotel, Edinburgh, all
guestrooms were renovated and a new lobby
bar, Itchycoo was launched. The new concept
Pulse Bar was opened at the Park Inn Heathrow
and Regent Berlin expanded its meeting
facilities.
Guests at the Radisson SAS Hotel, Sharjah
can now enjoy a new swimming pool, restaurant,
lobby, landscaping and cabanas. The
Radisson SAS Hotel, Riyadh has newly refurbished
guestrooms; while the Radisson SAS
Hotel, Jeddah has renovated its guestrooms,
meeting rooms, lobby area and reception.
concept will be applied to new constructions as well. park
Inn will focus on growing in city centres, suburban locations
and transport terminals with strategic growth in Scandinavia,
Germany, France, Benelux, Switzerland, UK/Ireland
and Russia. Growth in key destinations will be made
possible with newly built flagship properties.
a luxury legend, born in the Far east, Regent immediately
attracts interest and business at the very high end. The
brand is only made available for management and lease
contracts and is expected to see growth in premier
destinations and capital cities.
The missoni brand will be developed through leases and
management agreements, including sliver equity participations,
where needed. The focus will be on mega and
primary cities, as well as resort destinations, with carefully
selected growth in major european and Middle
eastern markets.

Some property Highlights 2005
RADISSON SAS HOTEL,
FRANkFURT, GERmANy
www.frankfurt.radissonsas.com
The Radisson SAS Hotel, Frankfurt provides the city
skyline with a unique point of interest: a stunning centre
of attention for visitors and locals. Visually, it looks
like a glass cube held in a shining blue disc. Among
the spectacular facilities are a wellness centre, a topfloor
swimming pool and an array of dining venues including
Coast Brasserie & Oyster Bar, Gaia Restaurant,
Wunderbar Lounge and Jam coffee shop.
RADISSON SAS mEDIA HARBOUR HOTEL,
DüSSELDORF, GERmANy
www.mediaharbour.dusseldorf.radissonsas.com
The Radisson SAS Media Harbour Hotel in Düsseldorf
is modern, creative and awash with style and elegance.
Located in the middle of Medienhafen, the
exciting new area being developed south of Düsseldorf,
the hotel enhances the architecture and lifestyle
of its surroundings. Designed by the famed Italian
designer, Matteo Thun, this hotel embodies the essence
of being in a port city.
property Highlights
RADISSON SAS HOTEL, HASSELT, BELGIUm
www.hasselt.radissonsas.com
Housed in the TT tower, one of the most fashionable
shopping malls in the centre of Hasselt, the Radisson
SAS Hotel boasts unique room styles and excellent
dining facilities. The rooms are designed in an Evergreen
style drawing inspiration from juniper plants and
the local flora, while the Hazeltek rooms feature the
colour of hazel trees blended with exotic technological
undertones. The Koper Bar & Restaurant is already
gaining popularity and offers a contemporary
menu in an old Flemish setting.
RADISSON SAS BOSPHORUS HOTEL,
ISTANBUL, TURkEy
www.bosphorus.radissonsas.com
The Radisson SAS Bosphorus Hotel in Istanbul enjoys
a breathtaking location on the banks of the Bosphorus
Strait that joins the Sea of Marmara with the Black Sea
and separates Asia from Europe. Close to the airport,
the business centre, and shopping malls, the hotel is
perfect for business and leisure travellers. Both the
Cruise Lounge Lobby Bar and StarBoard Café offer
stunning views of the Bosphorus Strait and bridge.
RADISSON SAS HOTEL AT DISNEyLAND ®
RESORT, PARIS, FRANCE
www.disneyland.radissonsas.com
The elegant and comfortable, Radisson SAS Hotel at
Disneyland Resort in Paris is located on Golf Disneyland,
right next to the Disney Parks and the Disneyland
Resort Paris Convention Centre. With excellent
golf, nearby amusement parks and luxurious wellness
facilities, this hotel is perfect for families on holiday,
meetings and conferences. The hotel offers delicious
dining options with the exclusive Pamplemousse Restaurant
and the casual Brasserie Birdie.
PARk INN HyDE PARk, LONDON, Uk
www.hydepark.parkinn.co.uk
A London landmark building, the Park Inn Hyde Park is
conveniently located close to the bustling heart of the
city. Just a step away from the serenity of Hyde Park.
The hotel’s Bistro serves English and international cuisine,
while the Bar is ideal for a pre-dinner cocktail or
nightcap. The hotel also offers a 24-hour fully-equipped
fitness centre as well as 24-hour room service.

RADISSON SAS HOTEL, BIRmINGHAm, Uk
www.birmingham.radissonsas.com
property Highlights
enviably located in the centre of the city, the Radisson
SaS Hotel, Birmingham is a -storey glass structure
that brings true european flair to the heart of Birmingham
and is part of the city’s ongoing renaissance. The
hotel is just minutes away from the Bullring Shopping
Centre, the railway station, theatres, and galleries.
Filini, the hotel’s all-day dining restaurant offers an excellent
menu inspired by Italian and arabic cuisines.
RADISSON SAS HOTEL, kIEv, UkRAINE
www.kiev.radissonsas.com
Built in 1903, the Radisson SAS Hotel, Kiev is a monument
of architecture that has now been completely
renovated to offer first class service. The hotel offers
fabulous views over the Dnipro River from its rooms and
public areas, alongside excellent dining facilities including
the French restaurant Bistro Côté Est and Mille
Miglia Ristorante & Enoteca, which specializes in Italian
cuisine. The hotel is within walking distance of government
offices, numerous parks, golden churches and
shops which line the city’s main street, Khreschatyk.
RADISSON SAS HOTEL,
ROSTOCk, GERmANy
www.rostock.radissonsas.com
The brand new Radisson SAS Hotel, Rostock is in the
heart of the city and is already considered to be a city
landmark. Offering fabulous views of the harbour and
the Baltic Sea, the hotel is close to the pedestrian area
and Kröpeliner Tor, making it the ideal location from
which to explore the city. The hotel has an exclusive
400-sq metre Fitness and Wellness Centre, an excellent
bistro-style restaurant and an irresistible lounge
bar, all of which contribute to a very memorable stay.
5

Some property Highlights 2005
RADISSON SAS HOTEL & SPA, CORk,
IRELAND
www.cork.radissonsas.com
Offering a high standard of style and service to both
business and leisure travellers, the newly opened
Radisson SAS Hotel & Spa is just 10 minutes from the
centre of Cork. The highlight of the hotel is the Relax
Spa & Fitness Centre with a hydrotherapy swimming
pool, luxurious Elemis treatments and a relaxation
suite. The hotel’s restaurant, the Island Grillroom
serves imaginatively prepared food in an intimate
ambience.
RADISSON SAS HOTEL,
DUBAI mEDIA CITy, U.A.E.
www.dubai.radissonsas.com
Discover luxury, comfort and convenience in the bustling
media hub of Dubai at the Radisson SAS Hotel.
This modern property, with its chic interior and hightech
amenities, has a contemporary design ethos,
which sets it apart from other hotels in the region. The
hotel offers a wide selection of dining options – from
the Asian fusion restaurant, Mandalay – to the Arabian
and Persian influences at the Chef’s House.
property Highlights
PARk INN EkATERINBURG, RUSSIA
www.parkinn.com.ru
Newly constructed in the city centre, park Inn ekaterinburg
has a bright interior, and offers park Inn’s renowned excellent
service. Close to the commercial, shopping and business
districts and located just 20 kilometres away from Koltsovo
airport, the hotel is ideal for business and leisure travellers.
park Inn ekaterinburg is one of the first hotels to be built by
Rezidor SaS and the company’s partners for hotel development
in Russia: IFU, Swedfund and Finnfund.

RADISSON SAS 1919 HOTEL,
REykJAvIk, ICELAND
www.1919.reykjavik.radissonsas.com
A unique four-star hotel in the heart of Reykjavik, the
Radisson SAS 1919 Hotel is a superbly designed lifestyle
hotel that offers outstanding service to both
business and leisure travellers. The hotel is located in
premises built in 1919 and is generally acclaimed as
one of the most beautiful historical buildings in Reykjavik.
The hotel’s highlight is the trendy and vibrant
Salt Restaurant that offers a super-chic menu in an
upscale atmosphere.
RADISSON SAS EU HOTEL, BRUSSELS,
BELGIUm
www.eu.brussels.radissonsas.com
Right behind the European parliament and Schumann
area, the newly built four-star Radisson SAS
EU Hotel is within walking distance of one of the
main shopping districts, the Louise area and just 3
kilometres away from the centre of Brussels. Willards
Restaurant is a trendy open kitchen and serves a
variety of cuisines. The hotel also offers excellent
meeting facilities, ideal for small intimate board
meetings and large cocktail receptions.
property Highlights
RADISSON SAS RESORT, ARC 1950,
FRANCE
www.arc1950.radissonsas.com
The four-star Radisson SAS Resort, Arc 1950 offers
opulent rooms and breathtaking views of the Mont
Blanc. Designed to embody the local style, the hotel is
built with mountain stones and wood and is decorated
with genuine alpine paintings. Arc 1950 is the brand
new extension of the world-famous ski area in France,
Les Arcs, offering 239 runs spread over 425 kilometres
and 2,000 metres of uninterrupted vertical drop.
RADISSON SAS RESORT, EL QUSEIR, EGyPT
www.elquseir.radissonsas.com
Adorned with several pools, waterfalls and fountains,
the Radisson SAS Resort El Quseir invites guests to
unspoilt beaches, crystal clear waters and first class
service. The resort is built with the same architectural
aesthetics as the old townhouses in nearby Quseir,
and feature natural stone, tiles and plasterwork. In
addition to excellent dining facilities, the resort also
offers a wellness and fitness area as well as an Ayurvedic
Spa.
RADISSON SAS GOLDEN SANDS RESORT
& SPA, GOLDEN BAy, mALTA
www.goldensands.malta.radissonsas.com
One of the most exclusive five-star resorts in Malta, the
Radisson SAS Golden Sands Resort & Spa is brilliantly
located on the edge of a cliff overlooking the unique
Sandy Beach. This brand new resort offers unforgettable
views of the breathtaking sea and the countryside,
alongside luxurious accommodation and the very
best in hospitality service. An extensive Spa & Leisure
Centre is the most sought after on the island.
RADISSON SAS HOTEL, PARIS-BOULOGNE,
FRANCE
www.boulogne.radissonsas.com
The Radisson SAS Hotel, Boulogne blends the trendy
ambience of a boutique hotel with a quiet resort atmosphere.
The hotel boasts a mix of exotic wooden
textures, chic furniture and contemporary colours,
which are accentuated by its green gardens and terraces.
The hotel is just 10 minutes from the Eiffel
Tower and the Champs Elysées – a perfectly chic little
haven in the romantic French capital.

8
Business Development
Making New Deals in New Markets
2005 was a good year for the hospitality
business. The EU expanded by an unprecedented
10 countries, creating new opportunities
for the hospitality and travel
industry. The European economic downturn
started to rapidly reverse and RevPAR
went up by about 4–5%—with all but four
European markets reporting an improvement
compared to 2004.
Rezidor SAS Is one of the fastest growing hospitality
management companies in the world,
offering a great portfolio of brands, as well as
being a profitable business for shareholders.
Over the past eleven years, Rezidor SAS has
seen incredible growth, taking the company
portfolio from 29 hotels in 1994 to 217 hotels in
operation at the end of 2005.
Market coverage has expanded from the
original home markets of Scandinavia to the rest
of Europe, Russia, the Middle East and Africa.
Rezidor SAS added four new home markets in
2005, in addition to Scandinavia, reflecting our
increased market coverage in the UK, Ireland,
Germany, France and Belgium. Rezidor SAS
expects to grow through financial commitments
in capital and secondary cities, joint ventures in
emerging markets such as Russia, Eastern Europe,
Africa and the Middle East, and franchises
in small markets.
THE CARLSON DEAL
Carlson Hotels Worldwide acquired a 25%
share of Rezidor SAS and the two companies
re-negotiated commercial terms of the existing
Master Franchise Agreement (MFA) and extended
it until 2052. This agreement brings additional
scale and profitability to Rezidor SAS
and further enhances development opportunities
by giving Rezidor SAS a better platform for
growth. It also ensures that the companies align
and grow their brands globally, particularly
through their loyalty and rewards programs.
THE mISSONI DEAL
Rezidor SAS and the famous Italian fashion
house Missoni have entered into a partnership
to launch the lifestyle hotel brand, Hotel Missoni.
Rezidor SAS chose Missoni because it is one of
the few fashion houses with a truly unique and
identifiable style and a distinguished history. The
lifestyle hotels will interpret the current Missoni
look of their iconic home-ware range and will
develop this into the next phase of lifestyle hotel
design. Missoni hotels will be contemporary in
style and culture. The hotels will place great emphasis
on design and on certain key hardware
and software elements, including – but not limited
to – bars and restaurants, bathrooms and
the service culture.
PARk INN ExPANSION IN THE Uk
Park Inn took over the management of nine hotels
in the UK, which increase its coverage across
the region, including the greater M25, the Midlands
and Wales. The portfolio, previously part of
the Queens Moat House Group was sold by
Goldman Sachs and Westmont Hospitality.
The new portfolio totals 1,196 bedrooms in
hotels located in Nottingham (172 rooms), West
Bromwich (168 rooms), Bedford (120 rooms),
Telford (153 rooms), Lakeside (97 rooms),
Northampton (145 rooms), Cardiff (132 rooms),
Harlow (119 rooms) and Watford (90 rooms).
All properties offer a restaurant and bar, conference
facilities and a health club. The majority
are located at major motorway junctions and
close to a business park. Rezidor SAS plans to
renovate and upgrade the current product over
the next two years, bringing them in line with the
Park Inn brand.
SUPER SCANDINAvIA
Scandinavian hotels top the growth in Europe
for 2005, as the region saw an overall RevPAR
growth of 6.7% with Copenhagen recording the
highest growth at 20.1%, followed by Oslo that
saw a 11.5% growth in RevPAR and Stockholm,
where RevPAR increased by 10.2%.
The region is characterised by mid-scale hotels,
which has facilitated – and continues to facilitate
– the growth of Park Inn hotels. Brand
recognition for Radisson SAS is very high in this
region. This enables further growth of both
Radisson SAS and Park Inn in key destinations
by actively working with developers and inves-
tors to pursue every new opportunity and to
grow the company’s portfolio through lease and
management contracts as well as franchise
agreements – the main objective being to further
expand geographical coverage.
mORE THAN Ok – Uk & IRELAND
The UK hotel market recorded a 4% RevPAR
growth in 2005. The economy remains buoyant,
despite the July 2005 London bombings and
the continued threat of terrorism, while both the
Irish economy and the Irish hotel business continue
to be robust. Primary growth in the UK will
be via Radisson SAS and Park Inn, while Ireland
offers limited growth potential due to high market
penetration.
Park Inn had a booming 2005 and fits the
market perfectly with its colourful and flexible
concept. Rezidor SAS continues to work towards
adding more dots on the UK map, targeting
primary and secondary cities. Park Inn
began 2005 with one hotel in the UK and ended
the year with 12, mainly as the result of contracting
a portfolio of nine hotels in October
2005. Rezidor SAS intends to add another 25
Park Inn hotels in the UK in the next five years
through leases, management contracts and
franchise agreements.
One of the first Hotel Missonis, the company’s
lifestyle hotel brand, will open its doors in
two years on the Royal Mile in Edinburgh. Rezidor
SAS continues to look for carefully selected
opportunities for leases or management contracts
in primary cities to expand this exciting
new lifestyle hotel brand.
Ireland is one of the company’s most successful
markets and Rezidor SAS continues to
enjoy a great reputation with a total of 13 hotels
in operation and/or under contract. Two stunning
properties, the Radisson SAS Farnham
Estate Hotel in Cavan and the Radisson SAS
Royal Hotel in the centre of Dublin will open their
doors in 2006 and 2007 respectively. In early
2006, Rezidor SAS added another feather to its
cap with the opening of Park Inn Dublin the
heart of the city.
Rezidor SAS is actively focusing on the
growth of Park Inn in Ireland, with four proper-

ties in operation or under contract in Dublin,
Dundalk, Ballinasloe and Mulranny. The company
is pursuing opportunities for management
contracts and/or franchise agreements in primary
and secondary cities.
THE CHALLENGE OF CENTRAL EUROPE
The overall European hotel business is prospering.
However, Germany lags behind with low
occupancy, no significant increase in room rates
and an underperforming luxury segment. In
contrast, the Netherlands, Austria and Switzerland
remain steady and are performing within
expected parameters.
Both the Radisson SAS and Park Inn brands
have remarkable presence in Germany, with 19
and 14 hotels respectively. In 2005, the Radisson
SAS Hotel, Rostock, and the elegantly designed
Radisson SAS Media Harbour Hotel,
Düsseldorf were opened. The architecturally
stunning, Radisson SAS Hotel, Frankfurt
opened its doors in November 2005 and almost
immediately won the award for Best Hotel
Opened in the Year at the 6th Worldwide Hospitality
Awards. In 2005, Park Inn signed a multiple
franchise agreement for a portfolio of seven
hotels in Germany, previously operated under a
Holiday Inn franchise.
In Germany, strategic development is planned
in cities with potential for international four- and
three-star properties, where Rezidor SAS does
not yet have a presence. After the spectacular
openings in 2005, the company is positive the
coming year will open opportunities for Radisson
SAS in Munich and for Park Inn all over Germany.
The Radisson SAS Hotel, Lucerne, on the
banks of Lake Lucerne will open to high expectations
in June 2006. Rezidor SAS is targeting
Geneva and Zurich in Switzerland for both Regent
and Radisson SAS, and is also actively
looking for opportunities in Lausanne, Davos
and St. Moritz. Growth for Park Inn in the region
is expected through conversions and franchise
opportunities.
Park Inn and Radisson SAS will see growth in
other Austrian destinations, such as Graz, Linz,
Innsbruck and Kitzbühel.
In 2006, special focus will be on The Netherlands
where the aim is to further establish Rezidor
SAS presence through a Radisson SAS in
primary cities like Den Haag and Rotterdam,
and secondary destinations such as Utrecht
and Eindhoven. Radisson SAS already has a
strong presence in Amsterdam with a hotel in
the city and the airport, and Park Inn is working
on making its mark on the market as well.
Rezidor SAS operates six hotels in Belgium, of
which two are in Brussels, two in Spa, one in
The Middle east is lately becoming more
tourist friendly, with cities like Dubai and
Muscat emerging as bridges between the
east and the West. Rezidor SaS is taking
full advantage of this and is planning rapid
growth in line with its multi-brand strategy
and Radisson SaS leading the way.
Antwerp and a brand new one in Hasselt. In
addition, a Park Inn hotel is under development
at Liège Airport. Rezidor SAS is actively looking
for opportunities for both Radisson SAS and
Park Inn in the Flemish and Walloon regions of
the country, especially in places such as Bruges,
Ghent and Namur.
HEATING UP SLOwLy – SOUTHERN AND
mEDITERRANEAN EUROPE
There has been a steady slowdown in the economies
of several Southern European countries
where the global increase in GDP is expected to
remain below 2% with an unemployment rate in
the excess of 10%.
In the four-star plus segment, RevPAR is expected
to increase due to a rise in occupancy,
while in the mid-scale segment, any increase
will come from a rise in room rates.
There are a total of 18 Radisson SAS and Park
Inn hotels in operation in France. The hotels are
spread over prestigious locations such as Paris
(Champs Elysées, Paris-Boulogne, Charles de
Gaulle, and Disneyland), Nice, Biarritz, and Lyon,
as well as secondary destinations. In addition,
Rezidor SAS is targeting new developments in
Toulouse, Lille and Strasbourg. Following the
conversion of eight hotels in France owned by
the Groupe Partouche to the Park Inn brand, the

company is actively developing Park Inn based
on a dynamic franchise strategy.
In Southern Europe, Rezidor SAS has properties
in Lisbon, Rome, Istanbul, Ankara and Malta.
In 2006, a strong focus will be on Spain, Italy and
Portugal, especially in capital and primary cities
such as Madrid, Barcelona, Seville Milan and
Florence for the Radisson SAS brand.
Rezidor SAS is also working towards consolidating
its position in Turkey, where it currently
operates three properties and sees strong
growth potential, especially for the mid-market
Park Inn brand. In order to accelerate growth,
the strategy is to identify portfolio deals, which
will rapidly enhance the presence of Rezidor
SAS in the entire region.
STARS OF EASTERN EUROPE,
AND CIS COUNTRIES
The expansion of the EU has breathed new life into
the economies of Eastern Europe and the Baltic
and Balkan countries. Poland, Hungary, the Czech
Republic, Slovakia and the Baltic countries are
expected to see strong economic growth, while
Bulgaria is set to offer a wealth of new opportunities
when it joins EU in 2008. In addition, Turkey
and Greece continue to offer great potential, despite
residual difficult trading environments.
Rezidor SAS has established itself firmly in Eastern
Europe with properties in nearly all the capital
cities. The company currently has 15 hotels
in operation and/or under contract across eight
countries in this rapidly growing market. Hotels
50
include The Regent Esplanade Zagreb in
Croatia; the Radisson SAS Carlton Hotel, Bratislava
in Slovakia; the Radisson SAS Hotel, Riga
in Latvia; and the Radisson SAS Hotel, Sofia in
Bulgaria. However, Radisson SAS will actively
pursue key destinations like Sarajevo, Ljubljana,
Montenegro, Dubrovnik and Belgrade.
In the next few years, Rezidor SAS aims to
rollout the Park Inn brand throughout Eastern
Europe, and is looking for opportunities in key
primary and secondary destinations.
mOvING ON UP – THE mIDDLE EAST
Travel and tourism in the Middle East grew by
4.8% in 2005 and is expected to grow by 4.4%
per annum between 2006 and 2015.
High occupancy was seen in Kuwait City,
Oman, Doha and Dubai with the highest levels in
Dubai. Dubai is emerging as a bridge between the
East and the West. Middle Eastern governments
are encouraging industries and services to reduce
dependence on oil and drive revenues through
other sources, including tourism, especially in
places like Oman and Dubai. However, due to crisis,
instability and conflict in certain countries in
the region, the future is difficult to predict. Despite
the uncertain future, the Middle East is a competitive
market with great potential for management
agreements without financial commitments.
Rezidor SAS currently operates 15 hotels in
seven countries in the Middle East and the hotels
fall under the umbrella of the first class, full
service Radisson SAS brand. However, Park Inn
In the past years, Rezidor SaS
has seen unparalleled growth, taking
the company portfolio from 2
hotels in to 2 hotels in
operation or under development in
countries at the end of 2005.
is now ready to make its mark in this region with
hotels in primary and secondary cities. Regent
and Hotel Missoni will follow closely, in line with
a multi-brand strategy.
The first two Park Inn hotels are scheduled to
open in 2007 in Riyadh and Al Khobar in the
Kingdom of Saudi Arabia. In addition, Radisson
SAS will open its fourth property in Saudi Arabia,
in the holy city of Al Madinah at the end of 2007.
Dubai is growing to be one of the top tourist
destinations in not just the Middle East but the
world. Radisson SAS opened a new hotel in
Dubai Media City in 2005, the first international
hotel chain within the United Arab Emirates’
freezone, and will take over management of
the five-star InterContinental Hotel in the heart
of the business district in October 2006. Rezidor
SAS plans for further expansion in Dubai
with a Radisson SAS hotel at the Trunk and a
Hotel Missoni on the Crescent on The Palm,
Jumeriah, to be ready in 2008.
Kuwait is an established market since the
opening of Radisson SAS Hotel, Kuwait in
1980. Following a strategy of further penetrating
existing markets, Rezidor SAS plans to
add two more properties in Kuwait by 2008,
a Hotel Missoni and a Regent, with Park Inn
following closely.
Rezidor SAS is actively seeking opportunities
for hotels and residences, exclusively through
management agreements, in Lebanon, United
Arab Emirates and the relatively new markets of
Qatar and Libya.

FROm RUSSIA, wITH LOvE
Positive macro-economic indicators reveal
healthy signs for the hotel industry in Russia
with the GDP real growth at 5.2% and unemployment
down to 7.5%. As Russians continue
to gain additional disposable income, the existing
vast potential of the Russian market will continue
to grow, creating endless opportunities.
There is tremendous potential for international-standard,
quality hotel accommodation in
Russia and CIS countries in more than 50 cities,
each with a population of over 300,000. Rezidor
SAS has established a representative office in
Moscow to better service our ambitious expansion
plans and promote management agreements
for the Radisson SAS and Park Inn brands
with Russian and international investors.
Rezidor SAS has entered a Joint Venture with
Finland’s Finnfund, Sweden’s Swedfund and
Denmark’s IØ to build and manage hotels in
Russia. Radisson SAS hotels in Moscow, St
Petersburg and Sochi, and the goodwill generated
by the JV helped Rezidor SAS add seven
hotel projects to its management portfolio in
Russia and the CIS, including two Radisson
SAS hotels under development in Moscow.
These new properties strengthen the presence
of Rezidor SAS in the entire region.
The company and its brand values, combined
with innovative design concepts are a
perfect fit for the needs of the growing Russian
and CIS markets. The fastest growth in the region
has been planned for the Park Inn brand
with focus on large regional cities where the demand
for mid-market hotels is very high.
Over the next year and a half, Rezidor SAS
expects to add 10 hotels to the Rezidor SAS
portfolio of hotels, and negotiations are well underway
in a number of cities in Russia as well as
in the Ukraine and Kazakhstan.
Within the next 10 years, Rezidor SAS aims
to have 50 hotels under various brands in the
region. Some of these properties will be under
the JV ownership, but the majority of the hotels
are expected to be contracted through management
agreements with Russian real estate
investment groups and individual owners.
OUT OF AFRICA
Business Development
The economic patterns might be patchy in
Africa, but several countries are on a healthy
path of growth and recovery.
Many African governments are forging economic
reforms to attract foreign investments and
internationally branded hotels are achieving
much higher occupancies, rates and GOPs than
in Europe. The vast majority of African accommodation
is currently unbranded, which Rezidor
SAS sees as a great potential for growth.
In 2005, Rezidor SAS signed a Joint Venture
agreement with four Nordic government funds
(IFU of Denmark, Finnfund of Finland, Norfund of
Norway and Swedfund of Sweden) to expand its
presence in Africa. Rezidor SAS expects to have
10 hotels in operation in the near future and is
targeting over 50 hotels in the next ten years.
Currently, Rezidor SAS operates two properties
– the Radisson SAS Waterfront Hotel and the
Park Inn Greenmarket Square – in Cape Town.
The Radisson SAS hotel in Lagos and the
Radisson SAS Resort & Thalasso in Djerba are
due to open in 2006. The company is also pursuing
several projects in South Africa, Botswana,
Zimbabwe, Zambia, Malawi, Kenya, Nigeria,
Ghana, Senegal, D.R. of Congo, and
Morocco.
The company plans aggressive growth of
both Radisson SAS and Park Inn brands,
through individual projects and portfolio deals,
with a special focus on management agreements
for city hotels as well as resorts.
5

Celebrating quality service! Radisson SaS celebrated the tenth anniversary of Yes I Can! in 2005
and elevated the service concept to be the company’s mission and vision. The company strives to have its service
delivery, across all brands, be fully animated by a Yes I Can! attitude.

Yes I Can! sets Rezidor SaS apart from its
competitors and is the way of life for all employees
at all levels, including the executive
committee, to ensure that every guest leaves
a Rezidor SaS hotel happy.
55

5
Relationships
Building and Benefiting from Successful Relationships
STAkEHOLDER SUCCESS FACTOR GOAL/AmBITION
CUSTOMeRS ■ High customer satisfaction
pROpeRTY OWNeRS
& INVeSTORS
■ High rate of returning customers
■ High brand awareness
■ High return on investment
■ High Gross Operating Profit (GOP)
■ Trusted and recognized brand
■ High market penetration
eMpLOYeeS ■ High job satisfaction
■ Safe working environment
■ Personal development and growth
■ Continuous training and education
SUppLIeRS ■ Quality products for good value
for money
■ Continuous sourcing of innovative
product solutions
COMMUNITY ■ Local employment and training
■ Local purchasing
■ Community involvement
GOVeRNMeNT ■ Stable and secure tax payer
■ Regulatory compliance
■ To increase customer satisfaction
index to 91
■ Increase unprompted brand awareness
in all regions
■ Maintain high GOP
■ Increase number of hotels
■ EBITDA growth of 15% as an average
over a business cycle
■ An EBITDA margin of 10%
■ Increase job satisfaction index to 85
(out of 100)
■ Zero tolerance for work-related injuries
■ Stable and long-term relationships
■ To provide a unique products experience
to the guest
■ Use local purchasing power
■ At least one community activity per hotel
■ Partner with international charity, research
and interest organisations
■ Ensure all hotels comply with local
and national legal framework
eNVIRONMeNT ■ Minimise negative impact ■ Energy efficiency
■ Water conservation
■ Waste reduction
■ Receive Third Party recognition

Relationships
ACTIvITy RESULT
■ Re-launch of goldpoints plus
■ Various advertising campaigns
■ 50% profit conversion programme
■ Revenue related programmes
■ Internship programmes
■ Mentor programmes
■ Recognised individual performances
■ Management School
■ Enhance usage of PIN system
(Purchasing Information Network)
■ Close market evaluation
■ Hotels Environment Action Month
September each year
■ Gold Point members given opportunity
to donate points to Save the Children
■ Regional environmental legal database
for regulatory compliance
■ Checklists for compliance
■ Hotels set up local RB Action Plans
■ Focus on RB Training and energy saving
■ Chairing ITP Executive team, forum for
environmental managers
■ Overall customer satisfaction index at 91
■ Successful launch of goldpoints plus
■ Received numerous awards
■ 11 years of consecutive economic growth
■ Opened 37 hotels
■ Signed 29 new contracts
■ Increased RevPAR penetration
■ Job Satisfaction Index at 84.5
■ Six mentees moved into GM positions
■ 355 employees trained in Management School
■ Hotels joining one of the company’s brands save
10–15% of their total purchasing cost
■ Increase turnover e.g. buying power through
contracted suppliers of 33% compared with last year
■ 133 hotels from all brands joined HEAM, an increase of 60% since
debut in 2003
■ Local charity project amounted to TEUR 694
■ TEUR 81 in donations to the victims of the tsunami and South Asia
earthquake through money boxes in hotel lobbies and goldpoints
plus members donations
■ Finalisation of the UNESCO restoration project at Bahla Fort, Oman
■ In legal compliance
■ Environmental legal database in place
for four countries, and expanding to an
additional three countries by February 2006
■ Increased resource efficiency in most hotels
■ Energy saving at the hotels by 6%
■ Employees with RB training 79%
■ 28 hotels with third party environmental label,
five Norwegian hotels with Swan eco-label
5

58
employees
Turning attitude into a Competitive edge
Hospitality is a people-to-people business
and managing our brands is in the hands
of every individual service provider. However,
being a good host is an innate talent,
something that cannot be learnt and this
is why we focus on personality when hiring
new people. The result has been a
strong service brand and a solid relationship
with guests and other stakeholders.
Quite simply, the right and only attitude at
Rezidor SAS is the Yes I Can! attitude.
In 2005, Rezidor SAS had 22,854 employees,
of which 19,928 worked under Radisson SAS;
2,071 under Park Inn; 139 under Country Inn
and 716 under Regent.
yES I CAN!
Yes I Can! celebrated its tenth anniversary in
2005 with a re-energised campaign. To emphasise
the importance of this unique service attitude,
Rezidor SAS has made Yes I Can! the key
to the company vision. All hotels organised reinvigorating
Yes I Can! meetings and held refresher
training programmes in November and December
2005. The aim of these sessions was to reintegrate
the Yes I Can! attitude into the culture
of the company in a more dynamic way.
A special activity calendar was created to
help hotels and staff carry out certain key Yes
I Can! activities every month. The activities vary
from month to month, ranging from on-job
skills training and departmental Yes I Can!
meetings to the selection of the Host/Hostess
of the Month. Instead of having annual performance
reviews, employees will now have
twice-yearly performance reviews to keep the
lines of communication open and increase employee
satisfaction.
All Department Heads and General Managers
had been trained in the Leading Yes I Can!
programme by the end of 2005. All members of
the management team spent two days together
attending Yes I Can! Delivering the Promise and
Leading Yes I Can! before the programme was
launched in hotels. All Rezidor SAS employees
have attended the Yes I Can! Delivering the
Promise course.
Despite the decentralisation of the company,
Area Vice Presidents and Regional Directors
work closely with General Managers who then
send out a monthly Yes I Can! status report to
the head office in Brussels. The Rezidor SAS
Management School played an active role in
promoting Yes I Can! by offering several Hotel
Trainer Certification Workshops for both Park Inn
and Radisson SAS employees, to ensure that
every hotel has dedicated Yes I Can! trainers.
In 2005, Rezidor SAS forged ahead with its efforts
towards decentralisation and high-quality service by
announcing that each hotel will nominate a Host/
Hostess of the Month and Host/Hostess of the Year,
instead of announcing an Employee of the Year.
DRIvING EmPLOyEE SATISFACTION
Becoming the most attractive hotel chain to
work for is an important part of the company vision.
The annual Climate Analysis checks employee
opinions and perceptions of work
conditions, career opportunities and management
performance. In 2005, the climate analysis
survey was revised to place a stronger emphasis
on engagement, loyalty and retention. New
questions were added and some old ones were
removed to enhance the quality of the results.
In 2005, 13,535 (12,041) employees at 140
(133) hotels, including managed and franchise
properties, participated in the Climate Analysis survey.
The result was 84.5 (81) out of a possible 100.
The loyalty index was 74% and the goal for 2006
is to increase the total result from 84.5 to 86.
ALwAyS LEARNING
Rezidor SAS is committed to developing each
employee to his or her full potential. At each hotel
a minimum of 1% of total revenue should be spent
on education and training. Training at Rezidor
SAS has a two-pronged goal: career development
and personal development. Much of the
training is brand specific, including induction training,
service programmes and brand standards.
Other basic and advanced resources are cross
brand. The Management School is not just a training
platform; it is also a medium through which to
convey both the company culture and an understanding
of the hospitality industry as a whole.
The Management School continued to attract
members from all brands, with 355 (194) employees
attending in 2005. One course, Profit
Planning Framework, was added to the curriculum,
enhancing the current focus areas of Revenue
Enhancement, Sales, Business Planning
and Training Techniques.
In 2005, Rezidor SAS extended its learning
portfolio by introducing customised eLearning
resources to support the face-to-face Management
School forum. Learning anywhere, at any
time, offers staff the opportunity to blend this
teaching method with others and maximise
learning outcomes. Time is of the essence in

today’s world, and eLearning allows all students
to fit their learning into their busy lives, with a
flexible learning schedule and individualised
learning content.
The Per Axel Brommesson fund was founded
in 1989 in the honor of the former chairman of the
company, Per Axel Brommesson. The fund was
awarded for 16th consecutive year in 2005 and
offers the possibility for talented Rezidor SAS
employees to develop their management knowledge
at leading universities around the world.
Rezidor SAS hotels are continuing to be popular
amongst internship students. A large
number of schools in Europe and the USA are
visited twice every year to introduce the students
to career opportunities in the company.
Growing through growing people is one of
the four basic beliefs of the People Development
strategy. It reflects the importance of
human resources in the value building process
and translates into employee policy according
to which, the company also has a responsibility
for improving the quality of life for employees at
every level.
The company believes in communicating openly
and honestly within the company, in all directions.
The flow of ideas concerning how to develop
the company, each hotel, each function and each
job are strongly encouraged as are creativity and
the search for new solutions and opportunities.
Rezidor SAS believes in responsibility and
encourages and empowers employees to take
CLImATE ANALySIS, 2005
OF MaxIMUM 00
100
95
90
85
80
75
70
65
60
55
50
01
02
03
04
05
employees
ownership in every process they manage and to
participate in decisions that affect them. A fundamental
element of the 100% Guest Satisfaction
Guarantee programme is the empowerment
of staff to make things right.
FAST TRACk GENERAL mANAGERS
The Rezidor SAS Mentor/Mentee programme is
designed to identify and develop employees within
the company who show high potential talent to
become future General Managers of Rezidor SAS
hotels. This supports the company culture of promoting
from within and is a sound management
method for a fast-growing hospitality company.
A Mentor is a father figure, a teacher, a role
model, an approachable counsellor, a trusted
advisor and a challenger. A Mentor is a leader
with extensive experience who understands all
the intricacies of being a General Manager and
is able to pass this information on.
A Mentee, an employee with great potential,
is handpicked by a General Manager. A Mentee
has worked in several departments and had
budget and personnel responsibility. By working
with a Mentor in a different hotel for a period of
up to 12 months, the Mentee will acquire
enough knowledge and experience to become
a General Manager.
Rezidor SAS constantly evaluates Mentors
and Mentees and looks within to train and create
General Managers who are deeply rooted in
the Rezidor SAS hospitality culture.
GEOGRAPHICAL DISTRIBUTION OF EmPLOyEES
peR CeNT
Nordic countries (22)
Rest of europe ( 0)
Middle east
africa & China ( 8)
Rezidor SaS Values
Trust
To earn trust and show it; to
offer mutual respect, honesty,
integrity and loyalty
Confidence
To believe in ourselves, in what
we have achieved and in where
we are doing it, but also to
remain humble
Open
To be frank, transparent, accessible
and flexible; to listen to and
consider all options
Yes I Can!
is our attitude and driving force
empowerment
To enable and equip employees
to make the important decisions
Fighting Spirit
To always be entrepreneurial,
opportunity driven and hungry
for more
z-factor
To dare to be different in ways
that are fun and rewarding
5

2
0
awards
Rezidor SaS hotels around the
world are recognised for their
impeccable service, excellent
dining, marketing efforts, business
sense and overall efforts
as a group of highly-acclaimed
hotels.

■ The Radisson SAS Hotel, Frankfurt was
awarded “Best Hotel Opened In The Year” at
the Worldwide Hospitality Awards held during
November 2005 in Paris. 1
■ The brand new Radisson SAS Hotel,
Birmingham won the prize for ”Employer With
Fewer Than 250 Staff” at the Birmingham
Employer Coalition Awards.
■ The Radisson SAS Hotel & Spa, Galway
received the award for the “Best Sales and
Marketing Strategy” at the 9th Annual HSMAI
(Hospitality Sales & Marketing Association
International) Awards in 2005. 2
■ The Sea Grill Restaurant at the Radisson
SAS Hotel, Brussels was awarded 19 points
out of 20 and the coveted second place in the
GaultMillau 2006, a leading gastronomic guide
for Benelux. Yves Mattagne, the head chef
received two Michelin Stars in appreciation of
his culinary expertise. 3
■ Rezidor SAS was named the ”Best International
Hotel Company,” a prestigious Russia
Travel Industry Award at the MITT2006 fair in
Moscow.
awards
an Impressive array of awards in 2005
■ The Radisson SAS Hotel Glasgow won
“Best Hotel in the Customer Care” section at
the Scottish Thistle Awards in December 2005. 4
■ Radisson SAS hotels in Tallinn, Estonia;
Vilnuis, Lithuania and Bratislava, Slovakia were
named leading hotels in their countries at the
2005 World Travel Awards in London.
■ Other winners at the prestigious 2005 World
Travel Awards were Radisson SAS Saga Hotel,
Reykjavik (Iceland’s Leading Hotel), the
Radisson SAS Resort, Sharjah (Sharjah’s
Leading Hotel) and the Radisson SAS Roe
Park Resort (Northern Ireland’s Leading Hotel).
■ The Radisson SAS Golden Resort, Sharm
El Sheikh was awarded the “Marque of
Excellent” by Thomas Cook UK for quality
of service and accommodation, and “Best
Tropical Resort 2005” by First Choice UK at
the 2005 World Travel Market.
■ Radisson and Radisson SAS were awarded
the coveted title of “Best Worldwide Hotel
Group” in May 2005 at the Advantage Annual
Conference in Sorrento, where 800 leisure and
business Advantage Agents from the UK vote
for their 20 top suppliers in various categories
■ The Radisson SAS Hotel in Kuwait won the
“Best 5-Star Business/Corporate Hotel” and
the Radisson SAS Resort, Taba won the “Best
Environmental 5-Star Hotel” at the Middle East
and North Africa (MENA) Travel Awards held in
Dubai in May 2005.
■ Radisson SAS scooped the Gold (2nd place)
for “Best Hotel Group UK” at the Buying
Business Travel Awards in London.
■ The Czech gourmet guide, Grand Restaurants
2006, named the Radisson SAS Alcron
Restaurant as second in the Czech Republic’s
Top 20 Best Restaurants.
■ Christian Lohse, chef de cuisine at Fischers
Fritz at The Regent Berlin, won a muchcoveted
star by the world-renowned Michelin
Guide. GaultMillau also awarded him an
impressive 17 out of 20 points.
■ Hasan Sivrikaya (Switzerland), Chef de bar
at the Park Inn in Rümlang, won third place at
the World Championships of the International
Bartenders’ Association (IBA) in Helsinki.

Delivering the promise
In 2005, Rezidor SAS celebrated ten years
of Yes I Can! with a re-launch of the supreme
service concept that has made it
stand out from the competition. Yes I Can!
embodies the vision and philosophy of
Rezidor SAS in all activities, especially
customer service. Radisson SAS hotels
offers 100% Guest Satisfaction Guarantee,
a pledge it delivers to all customers
through the Yes I Can! culture. Yes I Can!
is a key, brand message that encapsulates
the true spirit of hospitality.
Delivering consistently on brand promises is a
crucial factor in ensuring customer loyalty. All
Rezidor SAS brands operate with clearly defined
product and service standards and the
Quality Performance Review programme ensures
that delivery is continuously secured.
PUTTING THE IT IN HOSPITALITy
In 2005, Radisson SAS once again raced ahead
of the competition by becoming the first international
hotel chain to offer Free Broadband to
all guests as part of its E@syConnect service
concept. Many competing hotel chains offer
free Internet access, but only to select guests.
Free Broadband at Radisson SAS hotels includes
high-speed and wireless Internet access.
Most Radisson SAS hotels are wired so
that hotel guests can access the Internet from
anywhere in the hotel – rooms, meeting facilities
and public areas – simply by using their name
and room number.
By the end of 2005, all Radisson SAS hotels
offered IT Concierge, which offers seamless
technical support for any guest in need of assistance
with IT related issues. This includes solving
Internet access issues, printing documents and
help with peripheral equipment such as LCD projectors
and audiovisual equipment. IT Concierge
is available seven days a week from 7 a.m.
through 10 p.m. Support outside of these hours
is offered by a local service provider.
SUCH A DELIGHT!
The Rezidor SAS customer satisfaction monitoring
programme (the CST programme) helps
2
Customers
the company determine and serve the needs of
customers more accurately. It adds new insights
into the development of the brands, providing
tracking data to compare with historical performance
and benchmark scores for products
and services across countries.
For 2005, the Delight Score, which represents
the percentage of guests marking the top
score for Willingness to Return was 93 (92) and
the Overall Satisfaction Index was 92 (90). As a
result, the Golden Question index, overall experience,
value for money and likelihood to return,
improved from 90 to 91.
The Quality Performance Review (QPR) programme
aids the consistent delivery of the
brand promise. The QPR involves an annual
quality inspection, which has been developed
around specific brand service and operating
standards. It focuses exclusively on the customer
experience in relation to the product,
service and the brand.
These are effective operational tools with
which the General Managers can evaluate the
performance of their hotel, and at the same time
help Area Vice Presidents and Regional Directors
to assess the situation in their regions.
TImE TO REwARD LOyALTy
The Rezidor SAS loyalty program was relaunched
as goldpoints plus sm to expand its appeal
and enable members to redeem points in
Asia Pacific and North America as well as Europe,
the Middle East and Africa. It also gave
Rezidor SAS the opportunity to work closely
with the Carlson loyalty programme of the same
name. goldpoints plus is the second largest loyalty
programme for Rezidor SAS, after SAS EuroBonus,
in terms of room nights generated
from over 130,000 members. Member enrolment
almost doubled in 2005 due to the relaunch
and renewed marketing efforts. The goal
for 2006 is to increase the number of enrolled
members to 230,000.
goldpoints plus offers its members a completely
customised online experience with relevant
features and functionality. In 2005, new
features were offered to make goldpoints plus
even more attractive. One such initiative was
“Spend Now and Earn Later” where members
could book an Award Night stay before they
even earned any Gold Points. This feature is
exclusive to goldpoints plus and is part of an effort
to differentiate goldpoints plus from the loyalty
programmes offered by competitors.
Of all partner programmes, SAS EuroBonus
remains the top room night contributor and is
responsible for over 39% of all transactions.
However, goldpoints plus comes a close second
with 24% of guest award stays, while
Lufthansa Miles & More is in third place with
11% of total partner transactions. In total, all 31
global airline partners generate an impressive
14.5% of all room nights at Rezidor SAS hotels.
Rezidor SAS partnered with Sixt Car Rental and
extended partnership contracts with Emirates
Airlines, Air Berlin and KLM/Air France Flying
Blue, Lufthansa and Icelandair to include Park
Inn hotels.
goldpoints plus won a warm reception from
its members who voted it into the top three at
the 2004 Freddie Awards where frequent travellers
nominate their favourite reward based loyalty
programmes. The 2005 Freddie Awards,
due be presented in mid 2006, bodes well for
goldpoints plus.
GET mORE LEISURE AND PLEASURE
The Get More leisure programme has quickly
become the cornerstone of leisure marketing
for Rezidor SAS, helping the company establish
a targeted and extensive leisure customer database.
This fresh and stylish programme has
attracted over 30,000 subscribers worldwide
and generated more than 45,000 room nights
in 2005.
The programme has been extremely successful
in Scandinavia. As a result, in 2006,
Rezidor SAS will launch Get More Scandinavia:
a Get More programme for guests travelling in
Denmark, Norway and Sweden. Members will
have to stay four nights in Scandinavia but will
be able redeem the free fifth night in any Rezidor
SAS hotel in EMEA.

CLIENTELE mIx
Room nights, per cent
Business individual: %
Leisure individual: 22%
Leisure groups: 0%
Business groups: %
Retail rates/rack: 5%
Customers
GUESTS DELIGHTED
per cent
80
70
60
50
40
30
20
10
01
02
wILLINGNESS TO RETURN
per cent
100
80
60
40
20
01
02
03
03
04
04
05
05

Rezidor SAS is one of the most dynamic
hospitality companies in the world, with a
carefully segmented portfolio of great
brands. A demanding associate, Rezidor
SAS often challenges partners, but it is
always fair, equitable and constantly on
the lookout for new and more efficient
ways of doing business.
THE COmPANy OwNERS
The SAS Group has a 75% stake in Rezidor
SAS and brings business to Rezidor SAS by
booking room nights for airline crew, staff, distressed
passengers and employees on duty
travel. Both companies belong to the same industry,
making it easy to package deals like the
popular 2005 SAS Christmas Calendar. As
2006 progresses, Rezidor SAS and SAS plan
to continue offering customers a variety of
travel offers that combine an airline ticket with
a hotel stay.
Carlson Hotels Worldwide has a 25% stake
in the company and works closely with Rezidor
SAS in several areas such as distribution, loyalty
programmes and sales. Rezidor SAS brings
European business to Carlson Hotels Worldwide
in the United States, and Carlson brings
business from America and Asia Pacific to Rezidor
SAS. The two companies have integrated
their customer and travel agent loyalty programmes,
goldpoints plus and Look to Book. In
2006, Rezidor SAS will introduce Gold Points
for Meeting Planners, another successful existing
Carlson programme.
partners & Owners
Securing Good Return on Investment
NUmBER OF HOTELS
THE PROPERTy OwNERS
Understanding property owners and their needs
is a fundamental success factor in hotel development.
Rezidor SAS has been a property
owner and therefore understands the wants
and needs of property owners better than most
other hospitality management companies.
Various types of owners are involved in the
hotel industry. Some owners and investors
focus on the construction, development and
ownership of buildings. They consequently
enter into lease contracts. Other investors focus
on the construction, development and management
of hotel properties and therefore enter into
management contracts with hotel management
companies. Other property owners operate
their own businesses, running their properties
as a brand agreed through franchise deals.
Rezidor SAS offers a broad spectrum of solutions,
ranging from lease and management
agreements to franchise agreements, depending
on the requirements of each individual hotel
owner, the hotel’s strategic fit and other
parameters.
CONTRACT STRATEGIES
Rezidor SAS offers both valuable brands and
professional hotel management services to entice
hotel owners to choose the company. The
Rezidor SAS focus on up-scale brands – Regent,
Radisson SAS and Missoni – is primarily based
on management and lease agreements. The Park
Inn brand is expected to grow through franchise
agreements, though lease and management
contracts are preferred for strategic locations.
Rezidor SAS offers centralised reservation services;
worldwide sales offices; marketing and
advertising programmes as well as experienced
technical services; safety and security services;
a mature, responsible business programme and
central purchasing services. Rezidor SAS is a
serious, flexible and accessible partner, operating
strong brands and providing a good return
on investment.
FRANCHISING
Franchising is a successful and expanding
method of marketing, selling and distributing
goods and services. It combines the skill and
experience of the franchisor and the goodwill
created by the brand. Franchised hotels constitute
an increasingly large share of the Rezidor
SAS hotel portfolio. At the end of 2005, 30
(34)% of all Rezidor SAS hotels in operation
were under franchised contracts.
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Owned 5 2 2 2 2 0
Leased 2 25 28 0 2 5 5 66
managed 2 5 8 2 2 88 0 117
Franchised 2 2 28 0 25 2 2 5 8 80
TOTAL 80 00 2 0 82 200 2 263

Hotels cite purchasing benefits as one of
the most compelling reasons to become
part of the Rezidor SAS portfolio of hotels.
Hotels joining Rezidor SAS enjoy enormous
savings of almost 10-15% on purchasing
costs and receive a much better
and broader level of service.
In the current increasingly competitive market,
the success of any enterprise depends on its
ability to stand apart and above the rest. Rezidor
SAS strives to set the highest possible
standards in a constantly evolving and highly
competitive market, and the company’s Purchasing
Service department offers solutions
and support to sustain and support the company’s
overall goals and strategies.
The Purchasing Services department’s goal
is to ensure that all selected individual goods
and services work together creating a total entity
that is more than just the sum of its components.
Purchasing Services at Rezidor SAS
works only with suppliers whose products have
proven to be innovative and represent good
value for reliable quality.
NUmBER OF PROPERTIES IN OPERATION
AND UNDER DEvELOPmENT
RezIDOR SaS, 2005
Radisson SaS ( )
Country Inn ( )
Missoni (2)
park Inn ( 8)
Regent ( )
Unbranded ( )
NUmBER OF PROPERTIES IN OPERATION
AND UNDER DEvELOPmENT
RezIDOR SaS, 2005
Managed ( )
Franchised (80)
Leased ( )
purchasing
providing Solutions as Well as Goods and Services
OLD SCHOOL, NEw SCHOOL
Traditionally, Purchasing Services answered
three simple questions: when, where and at
what price? These questions were related to
supply and demand and were driven by quantitative
considerations. Today, Purchasing Services
offers well-researched and comprehensive
information to value-driven hoteliers on the best
and most cost effective ways to meet the needs
of increasingly discerning travellers.
As guests become more environment conscious,
the Purchasing Services department
has been called upon to source products and
services that strike the right balance between
eco- and economic-friendly.
REmARkABLE BUyING POwER
The robust size of Rezidor SAS allows Purchasing
Services to take advantage of extensive existing
market research and successful
partnerships with premier suppliers that are
market leaders in their respective fields. Inline
with the Rezidor SAS think global, act local strategy,
the company is divided into eight dedicated
Purchasing Regions that cater for every pur-
chasing need and demand of each hotel based
on region. With a Yes I Can! service attitude, Purchasing
Services ensures that hotel needs are
met at the right time for the right price.
PIN UP
Rezidor SAS adopted the Purchasing Information
Network (PIN) in 1998 and it has been a
grand success. All information about regional
and corporate purchasing agreements is fully
integrated in the web-based PIN. In return for
market exposure on the PIN system, suppliers
offer payback rewards based on the actual purchase
price. These bonus payments average
around 3% and the money, which was well over
MEUR 2 in 2005 went straight back to the order
initiators, which meant more savings for the hotels.
In time, PIN will become a complete e-procurement
tool, allowing online end-to-end
transactions.
NUmBER OF PROPERTIES UNDER
DEvELOPmENT
RezIDOR SaS, 2005
60
50
40
30
20
10
01
02
03
04
05
5

Responsible Business Re-emphasised
Rezidor SAS is dedicated to leading the
field in the hospitality industry with regards
to environmental performance. The
company ensures compliance with ethical
and human rights standards and is continuing
to increase efficiency per production
unit at all levels including property,
brand and group.
The Rezidor SAS Responsible Business (RB)
programme is now in its sixth year and is a wellestablished
part of the company’s operation.
The cornerstones of RB are:
■ Taking responsibility for the health and
safety of employees and guests
■ Respecting social and ethical issues in the
company, as well as in the community
■ Reducing the company’s negative impact
on the environment
kEEPING UP THE GOOD wORk
The RB programme is now deeply embedded
in the company culture. But as with any mature
programme the real challenge now lies in keeping
the troops motivated to advance. In 2005, a
new information collection system was launched
to ensure that lines of communication are kept
open between the hotels and the head office in
Brussels. This innovation gives more structure
and transparency to the RB reporting process
and increases accountability.
The performance of all the hotels is measured
against the goals and targets defined in the corporate
RB programme. Rezidor SAS hotels are
spread all over the Europe, the Middle East,
Africa and Asia. And the RB programme has the
RESPONSIBLE BUSINESS PROFILE
flexibility to accommodate all regional and local
differences. Hotels receive a list of goals, which
they use to devise an action plan best suited to
their operational criteria. At the end of 2005,
94% of all hotels (excl. franchise hotels) had an
RB action plan in place.
mOTIvATING THE TROOPS
Hotels are encouraged to continuously train
their employees in the Responsible Business
programme. The training helps employees understand
how a hotel impacts the natural environment
and local community and how their
actions can make a positive difference. The
training material is updated regularly and includes
a CD with guides, manuals and presentations.
Every hotel has a skilled RB Coordinator
to guide and advise employees on how to
achieve their RB objectives.
All new employees are introduced to the RB
programme. New hotels that join the Rezidor
SAS portfolio have been offered rigorous RB
training since 2002. Over 10,000 employees
had received RB training by the end of 2005.
RECOGNITION FOR RESPONSIBLE
BUSINESS
Community & environment
External awards and certificates highlight the
pro-active passion that Rezidor SAS exhibits as
a responsible company that is sensitive about
the environment. In Norway, the company’s hotels
have made a strong commitment to the
Nordic Swan eco-label and five Norwegian
Rezidor SAS hotels had received certification by
the end of 2005. More Norwegian properties will
gain certificates in the coming year. An additional
23 hotels received local, external environmental
certifications.
ACTION AND AID IN A yEAR OF NATURAL
DISASTERS
A series of large-scale natural catastrophes
strengthened the partnership between Rezidor
SAS and Save the Children in 2005. Early in the
year, in the aftermath of the tsunami, an impressive
TEUR 20 was collected from guests and
employees, a sum that was matched by the
Rezidor SAS corporate office. goldpoints plus
members redeemed their points to aid the tsunami
relief and contributed TEUR 40. That figure
was also matched by the corporate office.
In October, when the South Asian earthquake
left thousands dead and millions homeless, a
new collection was initiated. Almost TEUR 11
was collected from employees and guests.
These funds will be used by Save the Children
to provide family packs to the homeless and
needy in areas hit by the earthquake. Each family
pack, costing USD 600, includes a tent, food,
sheets and other basic necessities.
wORkING wITH, AND FOR,
THE COmmUNITy
In September, 133 Radisson SAS, Park Inn,
Country Inn and Regent hotels participated in
the global Hotel Environment Action Month
(HEAM). HEAM was initiated in 2003 by the ITP
(International Tourism Partnership), the tourism
section of the Prince of Wales International
Business Leaders’ Forum. The aim of HEAM is
to further educate employees and guests about
environmental and social issues and to raise
awareness of the efforts made by individual hotels,
plus the work of the ITP.
Some form of HEAM activity took place in
almost all countries where the company operates.
Rezidor SAS hotels participated enthusi-
RaDISSON SaS paRK INN COUNTRY INN ReGeNT
energy kwh/m 2 2 0 5 2 8 20
Water litre/guest night 50 28 2 5 5 2
Unsorted waste/guest night .8 . 5 0. 2 .
Carbon dioxide emissions, ton 5. 0 0 0

astically with a wide range of ingenious activities.
These included clean-up campaigns, blood donations,
collection of toys and clothes for charity,
car-free days, art competitions for children,
non-smoking days and a renewed focus on
providing employees with training on environmental
management.
ENvIRONmENTAL EFFICIENCy
The hotels within the group are becoming increasingly
resource efficient. When measured in
terms of production unit, surface area with regard
to energy consumption, and guest nights
with regard to carbon dioxide emissions, water
consumption and waste generation, the overall
trend is positive.
In total, 86 (80)% of the hotels responded to
the 2005 annual RB Status Report, an Internet
based questionnaire asking the hotels about
their social and environmental performance.
During the year, the hotels invested TEUR
2,832 in environmentally related improvements,
including energy efficiency and waste
management. Over 60% of all hotels have now
installed low energy light bulbs, room key cards
used to switch on the power in the room, low
energy mini bars and thermostats to control air
conditioning.
The impact of these investments is that the
total energy consumption per square meter
was reduced by 6% and the company’s direct
carbon dioxide emissions were reduced 13%.
The direct CO2 emissions amounted to 5,990
(6,897) tons in 2005. The indicators for water
consumption and unsorted waste generation
remained more or less constant, 450 (451)
litres per guest night and 1.86 (1.84) kg per
guest night.
PROTECTING OUR PEOPLE AND
PROPERTy – SAFETy AND SECURITy
The safety and security of guests, employees
and property is a vital aspect of hotel operations.
At Rezidor SAS, the Risk Management
Task Force focuses on six main points:
■ Review and refine loss prevention standards,
applications, education, practice and auditing
Community & environment
■ Review insurance programme requirements
■ Define and develop crisis management and
business continuity processes
■ Assist in conducting and reviewing hotel
audits and pro-actively use them as a tool to
minimise risk and loss throughout the
company
■ Keep the board informed on a regular basis
and advise them on recommended policy
changes in the above four areas
■ Keep Regional Directors informed on a
quarterly basis and advise them on policy
changes as they come into effect
Since the terrorist attacks in the US in 2001 and
in London in 2005, there has been a great shift
in how hotel security is perceived. At Rezidor
SAS this has resulted in a more structured risk
management agenda, with more pro-active behaviour
about gathering and sharing information
throughout the company. The lines of communication
regarding safety and security issues are
kept open and the key focus is on prevention.
In 2005, the Radisson SAS Hotel, Amman
was targeted by terrorists and the banquet hall
of the hotel was bombed. The hotel coped extremely
well, maintaining operations and supporting
both victims and local authorities.
Terrorists increasingly targeted hotels and resorts
in 2005, a move possibly aimed at gaining
widespread exposure in the media. The current,
unsettled world situation means that safety and
security is a key issue for hotel guests and employees.
Rezidor SAS has an open approach to
safety and security, based on communication,
co-operation and a Yes I Can! attitude.
Underscoring the company’s commitment to
safety and security, Rezidor SAS became one
of the founding members of International Hotel
and Restaurant Association’s Global Council on
Safety Security and Crisis Management. The
company was also chosen to host the first faceto-face
meeting of the Global Council in Brussels
in 2005.
ENERGy CONSUmPTION, 2001– 2005
RaDISSON SaS, KWH/M2
300
250
200
150
100
50
01
02
03
04
wATER CONSUmPTION, 2001– 2005
RaDISSON SaS, LITReS/GUeST NIGHT
500
400
300
200
100
01
02
03
04
UNSORTED wASTE, 2001– 2005
RaDISSON SaS, KG/GUeST NIGHT
2,5
2,0
1,5
1,0
0,5
01
02
03
04
05
05
05

Walking the Talk
In 2005, Carlson Hotels Worldwide acquired
a 25% stake in Rezidor SAS to
become part owner along with the SAS
Group. Carlson is ranked amongst the
largest privately held corporations in the
United States and is based in Minneapolis,
Minnesota, USA. The SAS Group, Europe’s
fourth largest airline, is listed on the stock
exchanges in Stockholm, Copenhagen
and Oslo.
Rezidor SAS is organised to achieve its business
and value creation goals. It is governed
against clearly set targets, all relating to the
overall target of value growth measured in
EBITDA. Annual average EBITDA growth is
targeted at 15% over a business cycle and
performance towards key stakeholders, such
as customers, property owners and employees,
is assessed regularly.
SAS is represented on the board of Rezidor
SAS by the Chairman, Gunnar Reitan (Executive
Vice President & Deputy CEO, SAS Group), Jør-
The triangle of excellence
8
environment performance
eMpLOYeeS
INVeSTORS &
pROpeRTY OWNeRS
Social performance
economic performance
Governance & Management
gen Lindegaard (President & CEO, SAS Group)
and Benny Zakrisson (Vice President Corporate
Advisory, SAS Group). Jay Witzel (President,
Carlson Hotels Worldwide) and Trudy Rautio
(Executive Vice President and CFO, Carlson
Companies) represent Carlson in the board,
while Leo M. Renaghan (Associate Dean for Academic
Affairs, Cornell University) is an independent
external member.
The Board of Directors assess and approve
the year-end business plan and interim reports.
They then set the overall future business objectives
and strategies by agreeing a budget and
business plan. The board also decides on investments,
new hotel projects and major
changes in the organisation. Five ordinary board
meetings are held annually, while the Chairman
of the Board and the CEO of Rezidor SAS, Kurt
Ritter, have monthly meetings.
The CEO meets with the Executive Committee
every week to discuss board matters, business
plans, results, main issues, projects in the
pipeline and organisational matters. The CEO
COSTUMeRS
The Triangle of Excellence is central to
the Rezidor SAS business philosophy.
It acknowledges the importance of
owners, customers and employees,
and dictates that all three groups must
be satisfied in order to run a successful
hotel management operation.
As a socially and environmentally
responsible company, Rezidor SAS
acknowledges the role played by other
key stakeholders including suppliers,
local communities, government
(legislation) and the environment.
By maintaining an open dialogue
with key stakeholders, Rezidor SAS
can keep abreast of stakeholder
demands and thus swiftly adapt to
the continuously changing business
environment.
acts with the Planning Committee to define the
strategic plan for the company. They meet twice
a year to discuss and decide on the business
plan and strategic issues, including general risk
management.
The Sales & Marketing Committee meets
monthly to follow-up on all revenue related activities
and issues, including marketing, sales,
public relations and brand activities and assessment
of new initiatives. The Area Vice Presidents/Regional
Directors meet six times a year
with the COO to follow-up on the operational
issues including hotel’s financial performance.
DE-CENTRALISING FOR GROwTH
Rezidor SAS has focused on decentralisation to
sustain a high rate of growth, giving more authority
and accountability to individual hotels. To help
General Managers capitalise on their proximity to
the market, they are empowered with all the decision-making
authority they need to enhance
revenue, including pricing, revenue management
and profit generation at the GOP level.
Within the framework of brand definitions and
company policies, the Area Vice Presidents and
Regional Directors approve the quarterly business
plan. This plan is implemented by the General
Managers, who are fully accountable for
customer, owner and employee satisfaction at
their hotel.
The M-Powerment programme includes equipping
General Managers with state-of-the-art tools
for revenue management, operational efficiency
and profit generation.
The Area Vice Presidents and Regional Directors
are part of the Corporate Office and support
the General Managers, in future openings
and franchise operations, in achieving synergies
in operation and optimising market penetration.
They are responsible for following-up on revenues
and profitability and for improving general
brand perception in their regions. The corporate
office is responsible for developing strategies
and goal setting, establishing brand guidelines
and creating brand awareness, auditing and
control, as well as ensuring profitable growth.

Hotels
2 0 General Managers
Responsibilities
■ Brand delivery
■ Quality performance
■ Revenue generation
■ Customer, owner and employee satisfaction
■ Recruitment and people development
■ Promote and sustain Responsible
Business objectives
Governance & Management
HOTeLS
General Managers
Operations
ReGIONS
area Vice presidents
Regional Directors
Strategy
CORpORaTe
OFFICe
Regions
Regional Directors and
5 area Vice presidents
Responsibilities
■ Strategy formulation and implementation
■ Hotel support
■ Optimise operations
■ Revenue generation
■ Brand delivery
■ Owner satisfaction and relationships
■ Leadership development
Corporate Office
Corporate Office
Responsibilities
■ Strategy development
■ Regional and hotel support
■ Brand development and implementation
■ Succession planning
■ Audit and control
■ Financial performance

Leveraging relationships! Carlson Hotels Worldwide acquired 25% of Rezidor SaS in 2005 and the companies
renegotiated commercial terms of the current Master Franchise agreement (MFa). This agreement brings additional scale and
profitability to Rezidor SaS and further enhances development opportunities by giving Rezidor SaS a better platform for growth.
It also ensures that the companies align and grow their brands globally, particularly through their loyalty and rewards programs.

Board of Directors Photograph on previous page.
Trudy Rautio – Born 02/11/52
Position: Executive Vice President & CFO,
Carlson Companies
Member since: May 2005
Kurt Ritter – Born 10/02/47
President & CEO, Rezidor SAS Hospitality
Gunnar Reitan – Chairman, Born 21/09/54
Position: Executive Vice President & Deputy
CEO, SAS Group
Member since: April 1994
executive Committee
Standing left to right
Martin Rinck
Executive Vice President & CDO
Gordon McKinnon
Sr. Vice President Brands
Olivier Jacquin
Sr. Vice President of Sales
Jacques Dubois
Sr. Vice President, Marketing,
Distribution & CRM
area Vice presidents
Standing left to right
Jean-Marc Busato,
The Middle East
Marko Hytonen, Russia,
CIS, Baltics & Finland
Thorsten Kirschke, Germany
Standing left to right
Martin Creydt,
Area Vice President
Michel Stalport,
Regional Director,
France & Tunisia
Thorsten Kirschke,
Area Vice President
Han Oldenburger,
Regional Director, Benelux
Heimo Leitgeb, Regional Director,
Austria, Bulgaria, Hungary,
Czech Republic & Bratislava
Jørgen Lindegaard – Born 07/10/48
Position: President & CEO, SAS Group
Member since: May 2001
Benny Zakrisson – Born 02/12/59
Position: Vice President Corporate
Advisory, SAS Group
Member since: September 1992
Leo M. Renaghan – Born 15/07/43
Position: Associate Dean for Academic
Affairs, Cornell University
Member since: September 1992
Sitting left to right
Werner Kuendig
Executive Vice President & COO
Kurt Ritter
President & CEO
Knut Kleiven
Deputy President & CFO
Sitting left to right
Christian Gartmann, UK,
Ireland & Iceland
Werner Kuendig,
Executive Vice President & COO
Martin Creydt, Norway
Regional Directors & area Vice presidents
Roy A. Kappenberger,
Regional Director, Denmark
Michel Schutzbach,
Regional Director, Poland
Martin Holze,
Regional Director, Park Inn UK
Gaston Gellens,
Regional Director, Sweden
Felix Hauser,
Regional Director,
Switzerland & Italy
Jay S. Witzel – Born 12/06/47
Position: President, Carlson Hotels Worldwide
Member since: February 2003
Sitting left to right
Jean-Charles Donat,
Regional Director, Park Inn France
Christian Gartmann,
Area Vice President
Werner Kuendig,
Executive Vice President & COO
Jean-Marc Busato,
Area Vice President
Marko Hytonen, Area Vice President
Per Kyd Jacobsen, Regional Director,
Turkey & Azerbaijan

RADISSON SAS
aUSTRIa
Salzburg, Verena Forstinger
Vienna, Alfio Bernardini
Vienna, Heimo Leitgeb
azeRBaIJaN
Baku, Per Svendsen
BaHRaIN
Manama, Radek Cais
BeLGIUM
Antwerp, Marco Rabbia
Brussels, Nicolas Meylan
Brussels, Jesper Henriksen
Hasselt, Pierre Verbeke
Spa, Willem van der Zee
Spa, Willem van der Zee
BULGaRIa
Sofia, Martin Kolb
CHINa
Beijing, Mac Karlsson
CzeCH RepUBLIC
Prague, Pasquale Baiguera
DeNMaRK
Aalborg, Richard Byrdal
Aarhus, Henrik Bille Pedersen
Copenhagen, Roy Kappenberger
Copenhagen, Anders Johannesson
Copenhagen, William Palle
Frederikshavn, Camilla Frost
Odense, Jack Nielsen
Ronne, Birte Jensen
Silkeborg, Egon Klitgaard
eGYpT
El Quseir, Pascal Gadet
Sharm El Sheikh, Daniel Twerenbold
Taba, Johan Aschan
eSTONIa
Tallinn, Sam Holmberg
FINLaND
Espoo, Kimmo Niittymäki
Helsinki, Marjo Risku
Helsinki, Leena Turunen
Helsinki, Leena Turunen
Oulu, Jukka Räisänen
Turku, Satu Järvelä
Vaasa, Riku Asukas
FRaNCe
Aix-Les-Bains, Marc Augé
Les Arcs, Gervais Rousseau
Biarritz, Jacques Aiglon
Rezidor SaS General Managers
Paris, Fabrice Castellorizios
Paris, Nathalie Seiler
Paris, Valerie Portheault
Paris, Jean-Claude Dumet
Lyon, Yves Grardel
Nice, Lionel Servant
GeRMaNY
Berlin, Werner Knechtli
Cologne, Jürgen Wirtz
Cottbus, Tobias Brönstrup
Dresden, Fernando Gruenberg Stern
Düsseldorf, Erich Banziger
Düsseldorf, Thomas Swieca
Erfurt, Florian Meyer-Thoene
Fleesensee, Karl Foerster
Frankfurt, Oliver Staas
Hamburg, TBA
Hannover, Frank Raspe
Karlsruhe, Hagen Müller
Leipzig, Ralph Goetzmann
Lübeck, Rik Brust
Merseburg, Patrick Hagen
Neubrandenburg, Jürgen Preiss
Rostock, Holger Herrmann
Rügen, Tineke de Wit
Rötz-Wutzschleife, Monika Hauer
Wiesbaden, Manfred Gabriel
HUNGaRY
Budapest, Gabor Bencze
Bükfürdö, Guido Bayley
ICeLaND
Reykjavik, Nina Thomassen
Reykjavik, Hrönn Greipsdóttir
IReLaND
Athlone, Geir Sikko
Cavan, Sheila Gray
Cork, Ruairi O’Connor
Dublin, Neil Lane
Galway, Tom Flanagan
Letterkenny, Ray Hingston
Limerick, Stephen Hanley
Sligo, Eoin Little
ITaLY
Rome, Massimo Supino
JORDaN
Amman, Firas Mniemneh
Aqaba, Wahbeh Dahdah
KazaKHSTaN
Astana, John Grieg
KUWaIT
Kuwait City, Andreas Flückiger
LaTVIa
Riga, Carl Kjellberg
LeBaNON
Beirut, Peter Schuler
LITHUaNIa
Klaipeda, Cornelia Erhardt
Vilnius, Eirik Bergvoll
MaLTa
St. Julian’s, Ernest Barry
Golden Bay, Raphael Cauchi
NeTHeRLaNDS
Amsterdam, Harriet Koopman
Amsterdam, Han Oldenburger
NIGeRIa
Lagos, Eivind Dalvang
NORWaY
Ålesund, Vanja Langsaavold Braute
Beitostølen, Bjornar Hovi
Bergen, Lars Listhaug
Bergen, Per Paulsen
Bodø, Jan-Ove Edvardsen
Haugesund, Knut Henderson
Karlstad, Maria Ahgren
Kristiansand, Lars Ola Solstad
Lillehammer, Jorgen Holst
Longyearbyen, Ronny Gjøse
Oslo, Tarje Hellebust
Oslo, Jörg Schiffmann
Oslo, Peter Holst
Olso, Olav Brommeland
Oslo, Jörgen Ljunggren
Stavanger, Ina Eldøy
Stavanger, Ina Eldøy
Tromsø, Dag Høybakk
Trondheim, Rune Nordstokke
OMaN
Muscat, Christopher Pike
pOLaND
Krakow, Michael Rathgeb
Szczecin, Janet Fitzner
Warsaw, Michel Schutzbach
Wroclaw, Maciek Miazek
pORTUGaL
Lisbon, Virgilio Cordeiro
RUSSIa
Moscow, Jørgen Rathjen
Sochi, Lyudmila Rudneva
Sochi, Igor Rekubratskiy
Sochi, Ekaterina Goncharenko
St. Petersburg, Marko Hytonen
SaUDI aRaBIa
Jeddah, Muin Sarhan
Jeddah, Basel Talal
Riyadh, Mohamed Benamar
Yanbu Al Bahr, Tahar Chakray

SLOVaKIa
Bratislava, Sonja Divé-Dahl
SOUTH aFRICa
Cape Town, Maarten van den Nieuwenhuysen
SWeDeN
Gothenburg, Malin Franck
Helsingborg, Mikael Wennerström
Linköping, Tomas Hornstedt
Malmö, John Monhardt
Örebro, Patrik Hanberger
Östersund, Anders Hallin
Stockholm, Lena Andersson
Stockholm, Peder Backström
Stockholm, Lena Andersson
Stockholm, Gaston Gellens
Stockholm, Charlotte Blum
Uppsala, Nils-Goran Zedrén
SWITzeRLaND
Basel, Felix Hauser
Lucerne, Markus Conzelmann
St. Gallen, Daniel Werner
TUNISIa
Djerba, Christiane Antoine
TURKeY
Ankara, Atakan Turhan
Istanbul, Philippe Pellaud
Istanbul, Per Kyd Jacobsen
UNITeD aRaB eMIRaTeS
Dubai, Siegfried Nierhaus
Sharjah, Guy Chidiac
UKRaINe
Kiev, Conrad Meier
UNITeD KINGDOM
Belfast, Carina Williamson
Birmingham, Kathrine Ohm-Thomas
Edinburgh, Malcolm Rann
Glasgow, Philip Mahoney
Leeds, Peter Laursen
Limavady, John O’Carrol
Liverpool, Geir Tønnessen
London, Mark Willis
Manchester, Christian Gartmann
Stansted, Tim Cordon
UzBeKISTaN
Tashkent, Necip Fincancioglu
PARk INN
azeRBaIJaN
Baku, Thomas Stene
Rezidor SaS General Managers
DeNMaRK
Aalborg, Solveig Byrdal
Copenhagen, Rune Andersen
Vejle, Lone Møller
FRaNCe
Arcachon, Dieter Acke
Lyon, Yannick Paturel
Macon, Jean-Charles Donnat
Nancy, Alexandre Chirat
Nice, Paola Valzoano
Orange, Noël Biset
GeRMaNY
Berlin, Jürgen Gangl
Bochum, Jo Dahmen
Cologne, Marcus Nölke
Cologne, Hidir Özdemir
Dortmund, Daniel Hoffacker
Erfurt-Apfelstädt, Klaus Hoesselbarth
Hannover, Marcus Schellenberger
Hartmansdorf/Chemnitz, Jan Meyer
Kaarst, Bertold Reul
Kamen, Daniel Hoffacker
Munich, Frank Graichen
Munich, Simone Samland
HUNGaRY
Sarvar, Simone Sander
ICeLaND
Reykjavik, Ingibjörg Ólafsdóttir
IReLaND
Dublin, Sally Ann Hughes
Dundalk, Philip Uzice
Mulranny, Stephen O’Connor
NORWaY
Haugesund, Knut Henderson
Geilo, Kjetil Vassdal
Rauland, Kristian Samnoen
Stavanger, Øivind Wigand
RUSSIa
Ekaterinburg, Sanjay Deva
SOUTH aFRICa
Cape Town, Debra Sivertsen
SWeDeN
Borlänge, Lars Lundh
Falun, Janne Svedin
Gävle, Mikael Junger
Gislaved, Victoria Johansson
Haninge, Lotta Welander
Karlskrona, Marie Baggström
Kvanum, Tomas Lindqvist
Nyköping, Tell Mellander
Sandviken, Goran Cronwall
Solna, Stefan Larsson
Stockholm, Meha Patel
Täby, Ulrik Clemens von Döbeln
Uppsala, Cecilia Granath
Vargön, Tomas Lindqvist
Värnamo, Kåre Johansson
SWITzeRLaND
Lully, Jan Tore Halvorsen
Zurich, Andreas Stöckli
UNITeD KINGDOM
Bedford, Mark Barber
Cardiff, Roger Goldsworthy
Harlow, Anna Frigieri
Hyde Park London, Deborah Haines
London, Martin Holze
Lakeside, Didier Boehlen
Northampton, Phillip Dark
Nottingham, Sarah Bestwich
Telford, Adrian Pickard
Watford, Peter Bartlett
West Bromwich, Stephen Woodhouse
COUNTRy INN
aUSTRIa
Vienna, Karim Jalloul
Vienna, Jens Ostergaard
FRaNCe
Paris, George Balassis
GeRMaNY
Timmendorfer Strand, Timm Eckl
UNITeD KINGDOM
London, Raj Lallchand
London, Malcolm Linforth
REGENT
CROaTIa
Zagreb, Torbjörn Bodin
GeRMaNY
Berlin, Wolfgang Nitschke
KazaKHSTaN
Almaty, Alper Can Bulcum
UNBRANDED
eGYpT
Sharm El Sheikh, Hatem Ezzat
FRaNCe
Aix-Les-Bains, Jean-Christophe Chapuis
IRaN
Kish Island, TBA
5

The Financials
Statement Of The Board Of Directors And Managing Director 77
Auditors’ Compilation Report 78
Board Of Directors’ Report 79
Group Highlights 82
Income Statement – Pro Forma 83
Balance Sheet – Pro Forma 84
Statement Of Changes In Equity – Pro Forma 86
Cash Flow Statement – Pro Forma 87
Notes To The Pro Forma Group Accounts 88
76

Statement of The Board of Directors
and Managing Director
We have today presented the annual report (group accounts) of Rezidor SAS Hospitality Holdings AB for 2005.
The pro forma financial statements in the annual report have been prepared as described in the notes to the group accounts.
Actual financial statements (before pro forma adjustments) have been prepared and presented in accordance with International
Financial Reporting Standards (IFRS) on the presentation of financial statements. We consider the accounting policies appropriate
for the annual report (based on the financial statements before pro forma adjustments) to provide a true and fair view of the
Group’s and the Parent Company’s assets, equity and liabilities, financial position, results and cash flows.
We recommend the annual report for adoption by the Annual General Meeting.
Stockholm, March 10th 2006
Board of directors
Statement of The Board of Directors and Managing Director
Gunnar Reitan, Chairman, Jørgen Lindegaard, Jay S. Witzel, Leo M. Renaghan, Benny Zakrisson, Trudy Rautio
and Kurt Ritter.
77

Auditors’ Compilation Report
We have read the accompanying unaudited pro forma consolidated balance sheets of Rezidor SAS Hospitality
Holdings AB Group (the “Group”) as at 31 December 2005 and as at 31 December 2004 and the unaudited pro forma
consolidated Income statements, pro forma statements of Changes in Equity, pro forma Cash flow statements for
the years then ended and have performed the following procedures.
1. Compared the numbers appearing in the columns captioned “Actual 2005” in note 27, page 103–106, to the unaudited
consolidated Balance sheet as at December 31, 2005 and the unaudited consolidated Income statements and the unaudited
Cash flow statements for the year ended and found them to be in agreement. The Balance sheet, Income statement, and
Cash flow statement have been subject to review.
2. Compared the numbers appearing in the columns captioned “Actual 2004” in note 27, page 103–106, to the consolidated
Balance sheet as at 31 December 2004 and the consolidated Income statement and the Cash flow Statement for the year
ended and found them to be in agreement.
3. Made enquiries of certain officials of the Group who have responsibility for financial and accounting matters about the basis
of determination of the pro forma adjustments.
The officials described to us the basis for determination of the pro forma adjustments
4. Read the notes to the pro forma consolidated balance sheets, pro forma consolidated Income Statements and the pro forma
consolidated Cash flow Statements and found them to be consistent with the basis described to us for determination of the
pro forma adjustments.
.
5. Recalculated the application of the pro forma adjustments to the aggregate of the numbers in the columns captioned
“Pro forma 2005” and “Pro forma 2004” for the pro forma consolidated Balance sheets, pro forma consolidated Income
statement and the pro forma consolidated Cash flow Statements presented in note 27, page 103–106 and found the amounts
to be arithmetically correct.
The pro forma consolidated Balance sheets, pro forma consolidated Income statement, pro forma consolidated Statements
of Changes in Equity and pro forma consolidated Cash flow Statements are based on management assumptions. The foregoing
procedures are substantially less than either an audit or a review, the objective of which is the expression of assurance with
respect to management’s assumptions, the pro forma adjustments, and the application of the adjustments to the historical
financial information. Accordingly, we express no such assurance. The foregoing procedures would not necessarily reveal
matters of significance to the pro forma consolidated Balance sheets, pro forma consolidated Income statement, pro forma
consolidated Statements of Changes in Equity and the pro forma consolidated Cash flow Statements and we therefore make
no representation about the sufficiency of the procedures for the purposes of a reader of such statements.
Deloitte AB
Peter Gustafsson
Authorized Public Accountant
78
Auditors’ Compilation Report

Board of Directors’ Report
Primary activity
Rezidor SAS positions itself as a strong alternative
in hotel management with a carefully segmented
collection of distinctive brands from
mid­market to full luxury, treating hotels as individual
units in order to optimise profitability. The
company strives to provide business and leisure
travellers with a choice of hospitality products
that offer good value for money while
assuring a good return to owners and inspiring
employees.
It is the company’s vision to have its service
delivery – across all brands – fully animated by
a Yes I Can! attitude, and the target is to achieve
a 100 % guest satisfaction score.
The company’s business model focuses on
lease, management and franchise contracts. Inline
with this strategy, Rezidor SAS divested the
last of its real estate interests in 2005 and gained
MEUR 6.2 from the sales of the shares of Radisson
SAS Hotel, London Stansted Airport. The
hotel continues to be operated by Rezidor SAS
under a long­term lease agreement.
For leased properties, the company operates
at own risk (limited to a pre­defined maximum
loss as described below) and reward , and
the trading is included in the group books. Managed
and franchised properties give Rezidor
SAS a fee for services performed. In some managed
properties, Rezidor SAS offers a guaranteed
result to the owners and thus takes an
operating risk and obtain higher upside.
Since 1994, under an exclusive master franchise
contract with US­based Carlson Hotels
Worldwide, Rezidor SAS Hospitality has grown
Radisson SAS into the second largest up­market
hospitality brand in Europe, the Middle East
and Africa. In 2002, the parties signed a similar
deal for three additional Carlson brands: Regent,
Country Inn and Park Inn. Park Inn has since
grown from 0 to 58 hotels in the region.
During 2005 Rezidor SAS entered into an
agreement with the famous fashion house
Missoni to develop and launch Hotel Missoni.
At year end 2005, Rezidor SAS had five
brands in its portfolio: Radisson SAS, Park Inn,
Missoni, Country Inn and Regent. The number
of hotels in operation were 217 (190), in addi­
Board of Directors’ Report
tion, there are 46 (57) under construction and
development. The hotels are located throughout
Europe, the Middle East, Africa and Asia.
All Rezidor SAS brands have distinctive profiles
and features and operate in specific product
segments. Radisson SAS is a first class full
service brand and Park Inn is an efficient and
innovative mid­market limited services brand.
Country Inn focuses on being homey and country­like
by adapting to local character, while
Regent is all about unashamed luxury. Last but
not the least; Missoni caters for the style and
design conscious audience.
Growth – with limited financial commitments
– is strategically important to Rezidor SAS to
achieve critical mass with regards to brand awareness,
geographical coverage and economies
of scale. The company’s core strategy is to create
a profitable growth within each brand in the
portfolio. To achieve this, Rezidor SAS offers:
■ Property owners the best possible solution
for their individual property
■ Corporate and leisure travellers a collection
of strong brands in different price categories
■ Superior value to shareholders by fast and
focused growth
■ Increased multi­brand career opportunities
combined with continuous personal development
for employees
■ Value, through respect and cooperation, to
the communities where the company operates
Rezidor SAS added four new home markets in
2005, reflecting increased market coverage in
the UK, Germany, France and Belgium. In addition,
the planned expansion in Russia and
other CIS countries will make Rezidor SAS a
major player in this region.
LeGaL strUctUre
In 2005, Rezidor SAS Hospitality and Carlson
Hotels Worldwide entered an agreement that
enhanced their long­time franchise partnership
into a shareholder agreement. The basis of the
agreement saw Carlson Hotels Worldwide acquiring
a 25% shareholding in Rezidor SAS from
the SAS Group in return for re­negotiated commercial
terms of the parties’ current Master Franchise
Agreement (MFA). The terms also reduced
licensing costs, thereby improving pre­tax profits
for the company by ca MEUR 6 in 2005 and with
a full year effect of MEUR 11. The deal includes
extension options of the MFA’s with Carlson until
2052.
In connection with the above transaction, a
new parent company for the Rezidor SAS Hospitality
Group was established. The new parent
company, Rezidor SAS Hospitality Holdings AB
is domiciled in Sweden.
Due to the fact that the new structure was
established in the middle of the year, the consolidated
group accounts and the annual report
have been made on a proforma basis. The reason
for this is that such proforma accounts will
give the best picture of the financial development
of the group in 2005 and comparables for
2004. See separate note for description of the
preparation of proforma accounts.
When Rezidor SAS Hospitality Holdings AB
acquired Rezidor SAS Hospitality A/S and its
subsidiaries, the transaction resulted in a residual
(intangible asset) of MEUR 100.6 between
the acquisition price and the net assets in Rezidor
SAS Hospitality A/S Group. Business combinations
under common control are not
covered by IFRS and therefore the company
has chosen to recognize the transaction using
the book values and therefore adjust the residual
against equity.
deveLoPmeNt iN activities aNd
fiNaNces
At the end of the year 2005, there were 217
(190) hotels in operation within the Rezidor SAS
Group, with 147 (138) Radisson SAS hotels, 58
(23) Park Inn hotels, 6 (6) Country Inn hotels, 3
(3) hotels under the Regent brand and 3 (3) unbranded
hotels. The number of rooms available
for sale on a daily basis increased to from
39,900 to 43,900.
The year 2005 was yet another banner year
for Rezidor SAS with the opening of 37 (28) new
79

hotels. Fifteen new Radisson SAS hotels, spread
over 12 countries were contracted and 16
Radisson SAS hotels were opened across
EMEA. Of note are the properties in Frankfurt,
Dubai Media City, Düsseldorf, Paris­Boulogne,
Istanbul, Jeddah and Edinburgh. Park Inn grew
by 13 new hotels, nine of which were part of a
portfolio of Queen Moat House hotels that cover
Great Britain from the north to the south and the
east to the west. For accelerated growth and
faster market penetration, Rezidor SAS will pursue
more portfolio deals, such as the recent one
in the UK.
With distribution in 48 countries, Rezidor SAS
capitalises on local market upswing and has limited
vulnerability with respect to local market
setbacks. In 2005, when the average RevPAR
increase in Europe was dragged down by southern
and central Europe, RevPAR across Rezidor
SAS was buoyed by the strong hotel performance
in Scandinavia and Eastern Europe.
Strong home and core markets stabilities the
company and currently, Rezidor SAS regards
Nordic countries, Germany, UK, Ireland, France,
Poland, Switzerland, Austria, the Baltics and the
Benelux as its home markets.
In 2005, Rezidor SAS generated group wide
revenue of MEUR 1.478 (1.247). This positive development
is mainly due to comparable units increasing
RevPAR by 11 %. The additional increase
relates to the increase in number of hotels.
The increase in revenues and with good costcontrol,
EBITDA for 2005 increased to MEUR
48.8 (27.2 ) on a proforma basis. Gross Operating
Profit margin for all leased and managed
hotels improved from 34 % to 35 %.
EBT for 2005 (also proforma) was MEUR
35.5 (12.1). The result includes income of MEUR
6.7 from revaluation of Other shares.
Total investments in intangible and tangible
fixed assets for 2005 amounted to MEUR 37.8
(54.1), and represents mainly major renovations
in leased hotels.
80
Board of Directors’ Report
marKet deveLoPmeNt
Throughout 2005, the hotel industry faced a
number of challenges including natural disasters
and the continuing threat of terrorism. Despite
this, hotel performance remained resilient
and any adverse effects on trading caused by
these events were short­lived.
Europe experienced an overall RevPAR growth
of 4–5% during 2005. The Nordic capitals enjoyed
the strongest development with Copenhagen
up 20.1%, Oslo 11.5% and Stockholm
10.2%.
Also Eastern Europe continued its positive
market development. The market in Southern
Europe including France was more challenging.
The enlargement of the European Union has
created new opportunities for the hotel and travel
industry, as there is a high demand for quality
accommodation in the new member states.
Hotel branding is expected to grow across all
categories with a strong focus on mid­scale
brands in Eastern Europe. With Radisson SAS
and Park Inn, Rezidor SAS is taking advantage
of this opportunity to grow rapidly in the region.
risK maNaGemeNt oBJectives
The key risk management objectives of Rezidor
SAS may be summarised as follows:
■ Ensure that the risks and benefits of new
investments and contingent liabilities are in line
with Rezidor SAS’ financial objectives.
■ Reduce business cycle risks through brand
diversity, geographic representation and by
ensuring there is a business mix of leased,
managed and franchised hotels.
■ Review and assess Rezidor SAS’ insurance
programmes, on an ongoing basis.
■ Carefully evaluate investments in high­risk
regions, to match this with premium returns on
investments.
■ Protect brand values through strategic
control and operational policies.
oPeratiNG risKs
Rezidor SAS is subject to the operating risks
common to the Hospitality Industry, including:
■ Changes in general economic conditions.
■ Changes in travel patterns and demand.
■ Cyclical over­supply of hotels.
■ The financial condition of third party
property owners and franchisees.
■ Typical long­term nature of lease and
management contracts with guarantees.
fiNaNciaL eXPosUre
As a result of Rezidor SAS’ strategy not to own
real estate, the risks from financing activities are
limited.
The net position on interest bearing assets
and liabilities is net assets of MEUR 12.1 (net
liability of MEUR 63.5). Rezidor SAS’ main financing
risk is related to the ability to control
and meet its off­balance sheet commitments
under fixed leases and management contracts
with guarantees. These commitments are normally
limited to an agreed maximum financial
exposure for Rezidor SAS for the entire term of
the contracts (cap). Such cap usually amounts
to the equivalent of 2–3 years fixed lease or
guaranteed result. If the caps are utilised, the
contracts will continue without further commitments
of guaranteed cash flows to the property
owners. In order to manage and control the off
balance sheet commitments, a financial policy
was implemented some years ago.
cUrreNcy eXPosUre
Exposure to foreign currency fluctuations is
mainly related to the conversion of the accounting
for foreign entities into Euro. Activities in
foreign entities, which includes owned and
leased hotels, are typically carried out in local
currency. Furthermore, there is an exposure to
foreign currency fluctuation in the Danish entities
related to management and franchise fees,
which are typically invoiced in foreign currency.

iNterest rate eXPosUre
Rezidor SAS’ interest bearing position is a net
asset of MEUR 12.1. Based on the net interest
bearing position December 31, 2005, an increase
of 1% point in the interest level would
result in an increase in net interest income of
MEUR 0.1.
credit risKs
Credit risks related to financial assets equal the
values included in the balance sheet. In some
cases Rezidor SAS has granted loans to hotel
owners in early stages of new projects. Appropriate
interest rates, repayment schedules and
security arrangements have been agreed upon.
casH fLoW risKs
It is the policy of Rezidor SAS that the raising of
capital and placement of excess liquidity is managed
centrally. Furthermore the Group has
objectives for liquidity reserves, such as excess
cash and irrevocable credit facilities, that the
Group at any time should have available.
WorK of tHe Board of directors
The Board of Directors of Rezidor SAS Holdings
AB consists of 6 members, all elected by the
Annual General Meeting.
The Board’s work is governed by the Swedish
Companies Act, the Articles of Association and
the work plan adopted by the Board each year.
During the year, the board held 5 meetings.
At these meetings, the Board discussed regular
business items presented at the respective
meetings, such as business plan & budgets,
business and market conditions, industry
trends, financial performance, expansion strategies
and specific hotel projects.
iNteLLectUaL caPitaL resoUrces
The average number of employees in owned
and leased hotels in 2005 was 4,922 (4,454), of
which 2,566 were women. The group­wide average
number of employees (including also managed
and franchised hotels) was 22,854
(18,800), of which 19,928 worked under Radisson
SAS; 2,071 under Park Inn; 139 under
Country Inn and 716 under Regent.
Board of Directors’ Report
The annual Climate Analysis checks employee
opinions and perceptions of work conditions,
career opportunities and management performance.
In 2005, the climate analysis survey
was revised to place a stronger emphasis on
engagement, loyalty and retention. New questions
were added and some old ones were removed
to enhance the quality of the results. In
2005, 13,535 (12,041) employees at 140 (133)
hotels, including managed and franchise properties,
participated in the Climate Analysis survey.
The result was 84.5 (81) out of a possible
100. The goal for 2006 is to increase this score
by 2%.
Training at Rezidor SAS has a two­pronged
goal: career development and personal development.
The Management School continued to
attract members from all brands, with 355 (194)
employees attending in 2005. Rezidor SAS also
extended its learning portfolio by introducing
customised eLearning resources to support the
face­to­face Management School forum.
resPoNsiBLe BUsiNess PerformaNce
The hotels within the group are becoming increasingly
resource efficient.
In total, 86 (80)% of the hotels responded to
the 2005 annual RB Status Report, an Internet
based questionnaire asking the hotels about
their social and environmental performance.
During the year, the hotels invested TEUR 2,832
in environmentally related improvements, including
energy efficiency and waste management.
Over 60% of all hotels have now installed low
energy light bulbs, room key cards, low energy
mini bars and thermostats to control air conditioning.
The saving resulting from these investments
was TEUR 270.
The impact of these investments is that the
total energy consumption per square meter
was reduced by 6% and the company’s direct
carbon dioxide emissions were reduced 13%.
The direct CO2 emissions amounted to 5,990
(6,897) tons in 2005. The indicators for water
consumption and unsorted waste generation
remained more or less constant, 450 (451) litres
per guest night and 1.86 (1.84) kg per
guest night.
eveNts occUrriNG after tHe
BaLaNce sHeet date
There are no significant events which have occurred
after the Balance Sheet date.
oUtLooK
In the year 2006, Rezidor SAS intends to continue
its expansion in a similar manner as in 2005.
The strengthened relationship between Rezidor
SAS and Carlson Hotels is expected to further
enhance the company’s possibilities to grow and
improve the financial situation of the company.
While hotel performance across the Middle
East and Asia promises to race ahead, trading
across Europe is expected to remain steady throughout
2006. As the hotel industry begins to
consolidate and new brands enter the market,
steady but sustainable growth in business performance
is expected to help keep the industry
moving in the right direction throughout 2006.
Most markets throughout Europe have experienced
year­on­year increases in RevPAR in
2005, a growth which has primarily been generated
through increase in occupancy levels with
only modest increase in the Average Daily Rate
(ADR). In 2006, the RevPAR growth is expected
to be primarily driven by increase in rate as occupancy
levels are at a high in some of the key
markets.
With the traditional feeder markets of the United
States and Japan returning to Europe, and
the strong influx of travellers from Eastern Europe,
India and China, tourist arrival numbers
are expected to reach pre­2001 levels in most
European cities in 2006 and 2007.
For the year 2006, revenue is expected to
increase, mainly due to an increased number of
hotels and continued improvement in market
conditions.
81

Group Highlights
thousand eUr 2005 2004 2003 2002 2001
Key fiGUres
Operating revenue, TEUR 587,046 498,728 389,964 389,715 379,474
EBIT, TEUR 34,987 13,722 –24,650 11,068 24,322
Financial items, net, TEUR 487 –1,619 –3,078 –1,806 –2,365
Net income, TEUR 26,448 9,562 –32,593 3,876 14,146
EBITDA Margin % 8.3 5.5 –3.0 6.2 –
EBITDA Growth % 179.4 234.2 –148 –17 –31
Equity, TEUR 1) 158,520 128,991 66,526 99,867 104,120
Balance sheet total, TEUR 364,433 384,492 291,611 279,309 289,887
Dividends paid, TEUR 2) 0 4,173 3,438 13,799 16,474
Total investments, TEUR 34,605 53,828 59,280 30,113 18,646
Number of employees 3) 4,922 4,454 3,474 3,117 3,103
oPeratioNaL Key fiGUres
Groupwide revenue, TEUR 4) 1,478,000 1,247,000 1,127,000 1,109,000 1,090,000
RevPAR, EUR 5) 67 61 59 69 70
Occupancy % 6) 67,3 64,6 62,0 65,0 67,0
Number of Hotels 7) 263 247 200 182 160
Available Rooms per night (000) 44 39 33 29 –
Rooms sold (000) 6) 6,836 5,964 5,121 4,646 4.964
No of countries operating 49 47 42 40 38
Unsorted waste (Tons) 12,326 10,505 10,002 – –
Energy consumption per m2 (kWh) 260 277 276 289 292
Water consumption (liter/guest night) 450 451 473 423 436
Employee satisfaction 84.5 81.1 81.4 80.5 79.2
Customer satisfaction 91.0 90.0 91.0 87.1 86.0
Key ratios
Profit Margin %, (GOP %) 8) 35 34 30 33 33
Return on capital employed % 12.2 4.3 –14.6 8.4 11.7
1) Including minority interest, following IFRS.
2) Group Contribution in Norway in 2003, 2004 and 2005.
3) Owned and leased properties.
4) Revenue in leased, managed and franchised hotels.
5) Revenue per available room (RevPAR), including leased and managed hotels.
6) Includes owned, leased and Management hotels.
7) Of which 217 are in operation in 2005.
8) Gross Operating Profit (GOP), including leased and managed hotels.
82
Board of Directors’ Report
PRO FORMA FOR 2005 AND 2004 – PRIOR yEARS ARE AlSO PREPARED IN ACCORDANCE WITH IFRS

Income Statement – Pro Forma
FROM ACTUAl TO PRO FORMA, SEE NOTE 27
thousand eUr Notes Pro forma 2005 Pro forma 2004
Operating revenue 8,9 587,046 498,728
Cost of goods sold –43,737 –41,255
Personnel cost 10 –207,295 –182,340
Other operating expenses –135,403 –113,336
Gross operating income 200,611 161,797
Rental expense, insurance of properties & property tax 11 –158,044 –137,677
Share of income in associated companies 6,213 3,071
operating income before depreciation 48,780 27,191
Depreciation and amortization –20,469 –19,284
Income from sale of shares and tangible fixed assets 6,676 5,815
operating income before financial items 34,987 13,722
Financial income 12 7,732 2,044
Financial expenses 12 –7,245 –3,663
operating income before tax 35,474 12,103
Tax on ordinary result 13 –9,026 –2,541
Net income after tax 26,448 9,562
Minority interest
Income Statement – Pro Forma
Net income 26,448 9,562
83

Balance Sheet – Pro Forma
FROM ACTUAl TO PRO FORMA, SEE NOTE 27
assets
thousand eUr Notes Pro forma 2005 Pro forma 2004
NON-CURRENT ASSETS
intangible non-current assets
Goodwill 14 12,597 12,729
Other intangible assets 14 61,054 54,527
tangible non- current assets
84
73,651 67,256
land, buildings and fixed installations 14 21,695 77,878
Machinery and equipment 14 48,894 52,216
Construction in progress 14 8,314 4,439
financial non-current assets
78,903 134,533
Share of equity in associated companies 15 5,766 11,335
Other shares and participations 15 17,076 7,982
Pension funds, net 19 14,472 11,003
Deferred tax asset 13 13,084 11,535
Other long-term receivables 17 15,612 14,287
66,010 56,142
total non-current assets 218,564 257,931
CURRENT ASSETS
inventory 5,195 4,533
receivables
Balance Sheet – Pro Forma
Accounts receivable 16 48,312 35,321
Other receivables 54,604 53,289
102,916 88,610
Bank deposits, cash in hand, etc. 18 37,758 33,418
total current assets 145,869 126,561
total assets 364,433 384,492

Balance Sheet – Pro Forma
FROM ACTUAl TO PRO FORMA, SEE NOTE 27
eQUity aNd LiaBiLities
thousand eUr Notes Pro forma 2005 Pro forma 2004
EQUITy
Share capital 107 80,000
Translation differences 19,393 19,312
Reserves 143,545 61,514
Retained earnings –31,187 –41,712
Net profit for the year 26,448 9,562
equity attributable to equity holders of the parent 158,306 128,676
minority interest 214 215
total equity 158,520 128,891
lIABIlITIES
Non-current provisions
Pension commitments 19 1,034 2,640
Deferred tax 13 14,303 9,143
Non-current interest bearing liabilities
15,337 11,783
Other long-term liabilities 430 0
current liabilities
Balance Sheet – Pro Forma
430 0
liabilities to financial institutions 37,683 36,095
Accounts payable 34,732 30,943
Current tax 7,222 1,117
Other current liabilities 20 110,509 175,663
190,146 243,818
total liabilities and provisions 205,913 255,601
total equity and liabilities 364,433 384,492
Mortgages and contingent liabilities 21, 24
leasing commitments 22
Management contract commitments 23
Segment information 25
85

Statement of Changes in Equity – Pro Forma
FROM ACTUAl TO PRO FORMA, SEE NOTE 27
eQUity
thousand eUr
86
Statement of Changes in Equity – Pro Forma
share
capital
translation
differences
reserves
retained
earnings
equity attributable
to equity holders
of the parent
minority
interest
equity as of 01.01.2004 77,200 21,342 59,978 –37,208 121,312 214 121,526
Increase of Share Capital 2,800 2,800 2,800
Net profit for the year 9,562 9,562 9,562
Group contribution –4,173 –4,173 –4,173
Tax reductions from group contribution 1,205 1,205 1,205
Transfer 1,536 –1,536
Change in translation difference –2,030 –2,030 1 –2,029
equity as of 31.12.2004 80,000 19,312 61,514 –32,150 128,676 215 128,891
equity as of 01.01.2005 80,000 19,312 61,514 –32,150 128,676 215 128,891
Increase of Share Capital 3,000 3,000 3,000
Net profit for the year 26,448 26,448 26,448
Transfer –963 963 0 0
Change in translation differences 81 81 81
Creation of the Swedish Parent Company –82.893 82,993 100 100
equity as of 31.12.2005 107 19,393 143,544 –4,739 158,305 215 158,520
total
equity

Cash Flow Statement – Pro Forma
FROM ACTUAl TO PRO FORMA, SEE NOTE 27
thousand eUr Notes Pro forma 2005 Pro forma 2004
oPeratioNs
Earnings Before Interest and Taxes (EBIT) 35,410 11,533
Interest paid to external financial institutions –34 –268
Depreciation and amortization 14 20,469 19,284
Income from sale of shares and tangible fixed assets
and disposals
14, 15 –8,818 –5,815
Write down/up of investments –6,660
Change in tax position 917 –4,934
Share of income in associated companies 15 –6,213 –3,071
Dividend from associated companies 15 3,087 2,689
funds provided by the year’s operations 38,158 19,418
Change in:
Inventories –662 –1,161
Current receivables –1,990 –11,409
Current liabilities 1,964 4,905
change in working capital –688 –7,665
cash flow from operating activities 37,470 11,753
iNvestmeNts
Shares and participations 15 –2,629 –1,071
Interest received from external financial institutions 98 838
Other intangible assets 14 –2,504
Construction in progress 14 –13,806 –14,630
Machinery and equipment 14 –15,723 –19,234
land, Buildings and other fixed installations 14 –3,203 –19,964
total investments –37,767 –54,061
Sale of fixed assets and shares 85,042 17,641
cash flow from investing activities 47,275 –36,420
fiNaNciNG
Net on external loans 373 –2,156
long term interest bearing receivables –1,385 1,477
long term interest bearing liabilities –1,592 –281
Current interest bearing receivables –8,985 9,741
Current interest bearing liabilities –65,902 39,718
Other changes financial items –7,610 –5,422
total external financing –85,101 43,077
Increase share capital 3,107 2,800
Group contribution, Norway –4,173
cash flow from financing activities –81,994 41,704
effects of exchange rate changes on cash
and cash equivalents
–72 –91
change in liquid funds in the balance sheet 2,679 16,946
Liquid funds at the beginning of the year –2,604 –19,622
Liquid funds at year-end 18 75 –2,676
liquid funds consist of:
Cash Flow Statement – Pro Forma
Bank deposits, cash in hand etc. 37,758 33,419
liabilities to financial institutions –37,683 –36,095
Liquid funds 75 –2,676
87

Notes to the Pro Forma Group Accounts
Note i GeNeraL iNformatioN:
Rezidor SAS Hospitality Holdings AB is a limited company incorporated in
Sweden. Its registered office and principal place of business are in Sweden
(Stockholm). The principal activities of the Company and its subsidiaries are
described in the board of directors’ report.
Note 2 Basis of PreParatioN of Pro forma
fiNaNciaL statemeNts:
During the first quarter of 2005, the SAS Group concluded an agreement with
the U.S.-based Carlson Hotels Worldwide. Under this agreement Carlson
Hotels acquired 25% in Rezidor SAS in exchange for improved commercial
terms in the parties’ Master Franchise Agreement. The agreement was completed
end of June 2005.
In order to present comparable figures, the financial statements are presented
using a pro forma method as if this agreement with Carlson Hotels Worldwide
took place the 1/1/2004 (instead of July 1st 2005) with all the consequences in
the Income Statement regarding the reduction of fees paid to Carslon and its
related tax effect (see note 27).
In order to prepare the pro forma financial statements, we considered as starting
points:
For 2004, the actual financial statements of 2004 reported in last year annual
report. For 2005, the actual financial statements of 2005 taking into consideration
that the New Franchise Agreement took place as of its real date of completion
which is 1st July 2005.
Applying the pro forma method as if the New Franchise Agreement with Carlson
took place as of 1st January 2004, the above mentioned fees would have decreased
by an amount of 5,064 TEUR for 2005 and 9,097 TEUR for 2004 having
both of them a direct impact on the pro forma cash flow statement.
Moreover, 55,000 TEUR have been considered as other intangible assets in the
Parent Company financial statements due to the excess price for the valuation
considered for the whole Group.
Therefore and still assuming that the New Agreement took place as of 1st
January 2004, this amount of 55,000 have been depreciated over the length of
this New Agreement (47 years) starting 1/1/2004. The related pro forma adjustments
in the Income Statement are an increase of depreciation of 585 TEUR for
2005 and 1,170 TEUR for 2004. Finally, the related tax effects (28%) of these
adjustments have also been showed in the Income Statement as a pro forma
net tax charge (–1,254 TEUR for 2005 and –2,220 for 2004). These related tax
adjustments have been considered as cash outflows for 2004 and as a change
in the tax liability for 2005.
Note 3 adoPtioN of NeW aNd revised iNterNatioNaL
fiNaNciaL rePortiNG staNdards
In the current year, the Group has adopted all of the new and revised Standards
and Interpretations issued by the International Accounting Standards Board
(the IASB) and the International Financial Reporting Interpretations Committee
(IFRIC) of the IASB that are relevant to its operations and effective for accounting
periods beginning on 1 January 2005.
The adoption of these new and revised Standards and Interpretations has
resulted in changes to the Group’s accounting policies in the following area that
have affected the amounts reported for the current or prior years:
GOODWIll (IFRS 3)
IFRS 3 should be applied for business combinations for which the agreement
date is on or after 31March 2004.
88
After initial recognition, IFRS requires goodwill acquired in a business combination
to be carried at cost less any accumulated impairment losses. Under IAS
36 Impairment of Assets (as revised in 2004), impairment reviews are required
annually, or more frequently if there are indications that goodwill might be impaired.
IFRS 3 prohibits the amortization of goodwill. Previously, under IAS 22,
the Group carried goodwill in its balance sheet at cost less accumulated amortization
and accumulated impairment losses. Amortization was charged over
the estimated useful life of the goodwill, subject to the rebuttable presumption
that the maximum useful life of goodwill was 20 years. In accordance with the
transitional rules of IFRS 3, the Group has applied the revised accounting policy
for goodwill prospectively from the beginning of its first annual period beginning
on or after 31 March 2004, i.e. 1 January 2005 to goodwill acquired in business
combinations for which the agreement date was before 31 March 2004.
Therefore, from 1 January 2005, the Group has discontinued amortizing such
goodwill and has tested the goodwill for impairment in accordance with IAS
36. Because the revised accounting policy has been applied prospectively, the
change has had no impact on amounts reported for 2004 and prior periods.
Note 4 accoUNtiNG PoLicies
The financial statements before pro forma adjustments have been prepared in
accordance with International Financial Reporting Standards.
IFRS are implemented in order for the annual report also to comply with the
requirements of the accounting standards approved by the European Union.
REPORTING CURRENCy
As EUR is the functional currency for the Group, the financial statements are
presented with EUR as the reporting currency.
GENERAl PROvISION ON RECOGNITION AND MEASUREMENT
Assets are recognised in the balance sheet if it is likely that future economic
benefits will flow to the Group as a result of past events and the value of the
assets can be measured reliably.
Liabilities are recognised in the balance sheet if the Group has a legal or actual
obligation as a result of a past event, and it is likely that future economic benefits
will flow out of the Group, and the value of the liabilities can be measured reliably.
In the initial recognition assets and liabilities are measured at cost. Measurement
after the initial recognition is effected as described below for each item.
In connection with recognition and measurement, all affairs and conditions are
taken into consideration that arise before the time at which the Annual Report
is prepared and that confirm or invalidate affairs and conditions existing on the
balance sheet date.
Income is recognised in the income statement as and when earned, whereas
costs are recognised at the amounts attributable to the financial period under
review. Revaluations of financial assets and liabilities are included in the income
statement as financial income or financial expenses.
CONSOlIDATED FINANCIAl STATEMENTS
The consolidated financial statements include Rezidor SAS Hospitality Holdings
AB (Parent Company) and the group enterprises (subsidiaries) that are controlled
by the Parent Company, see group chart in note 7. Control is achieved by
the Parent Company, either directly or indirectly, holding more than (50%) of
the voting rights or in any other way possibly or actually exercising controlling
influence. Enterprises in which the Group, directly or indirectly, holds (between
20% and 50%) of the voting rights and exercises significant, but not controlling
influence are regarded as associates.
BASIS OF CONSOlIDATION
The consolidated financial statements incorporate the financial statements of
the Company and entities (including special purpose entities) controlled by the
Company (its subsidiaries). Control is achieved where the Company has the
power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities.

The consolidated financial statements are prepared on the basis of the financial
statements of Rezidor SAS Hospitality Holdings AB and its subsidiaries. The
financial statements used for consolidation have been prepared applying the
Group’s accounting policies.
The results of subsidiaries acquired or disposed of during the year are included
in the consolidated income statement from the effective date of acquisition or
up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries
to bring their accounting policies into line those by other members of the
Group.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Minority interests in the net assets of consolidated subsidiaries are identified
separately from the Group’s equity therein. Minority interests consist of the
amount of those interests at the date of the original business combination
and the minority’s share of changes in equity since the date of the combination.
Losses applicable to the minority in excess of the minority’s interest in
the subsidiary’s equity are allocated against the interest of the Group except
to the extent that the minority has a binding obligation and is able to make an
additional investment to cover the losses.
BUSINESS COMBINATIONS
For intra-group acquisitions, any difference between the acquisition costs and
the equity of the acquired companies are adjusted against equity according to
the pooling of interest method.
All assets and liabilities assumed in the business combination are recorded in
the acquirer’s group financial statements at their book value immediately before
the acquisition, without any adjustments to fair value. Comparative figures are
presented as if the business combination had occurred at the first day presented
in the group financial statement – even if they relate to a period before
the actual incorporation of the new parent company.
The acquisition of subsidiaries is accounted for using the purchase method.
The cost of the acquisition is measured at the aggregate of the fair values, at
the date of exchange, of assets given, liabilities incurred or assumed , and
equity instruments issued by the Group in exchange for control of the acquiree,
plus any costs directly attributable to the business combination. The acquiree’s
identifiable assets, liabilities and contingent liabilities that meet the conditions
for recognition under IFRS 3 are recognised at their fair values at the acquisition
date, except for non-current assets (or disposal groups) that are classified as
held for sale in accordance with IFRS 5 Non-Current Assets Held for Sale and
Discontinued Operations, which are recognised and measured at fair value less
costs to sell.
Notes
Goodwill arising on acquisition is recognised as an asset and initially measured
at cost, being the excess of the cost of the business combination over the
Group’s interest in net fair value of the identifiable assets, liabilities and contingent
liabilities recognised. If, after reassessment, the Group’s interest in the net
fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities
exceeds the cost of the business combination, the excess is recognised immediately
in profit or loss. The interest of minority shareholders in the acquiree is
initially measured at the minority’s proportion of the net fair value of the assets,
liabilities and contingent liabilities recognized.
PROFITS OR lOSSES FROM DIvESTMENT OF SHARES
Profits or losses from divestment of subsidiaries and associates are calculated
as the difference between the selling price and the carrying amount of the net
assets at the time of divestment, inclusive of non-amortised goodwill and estimated
divestment expenses. Profits and losses are recognised in the income
statement under ”Income from sale of shares and tangible fixed assets”.
TRANSlATION OF ACCOUNTS IN FOREIGN CURRENCy
Foreign currency transactions are at the initial recognition translated into the
reporting currency using average monthly rates, which essentially reflect the
rate of exchange at the date of transaction. Receivables, liabilities and other
monetary items denominated in foreign currencies that have not been settled
at the balance sheet date are translated using the rate of exchange at the balance
sheet date. Exchange differences that arise between the rate at the date
of transaction and the one in effect at the date of payment, or the rate at the
balance sheet date, are recognised in the income statement as financial items.
Fixed assets purchased in foreign currencies are translated using historical
exchange rates.
All foreign subsidiaries and associates are considered independent entities.
In recognising these entities the income statements are translated into the
reporting currency at average monthly rates, which essentially reflect the rate of
exchange at the date of transaction. Balance sheet items are translated using
the exchange rates at the balance sheet date. Goodwill is considered to belong
to the independent foreign entity, and it is translated using the exchange rate
at the balance sheet date. Exchange differences arising on the translation of
foreign entities’ equity at the beginning of the period using the exchange rates
at the balance sheet date as well as those arising on the translation of income
statements from using average rates to using the exchange rates at the balance
sheet date are taken directly to shareholders’ equity.
Exchange adjustments of long-term intercompany accounts with independent
foreign subsidiaries, which in substance forms part of the aggregate investment
in the relevant subsidiary, are recorded directly in shareholders’ equity.
ExCHANGE RATES
year-end rate average rate
one eur equals: currency 2005 2004 2005 2004
Denmark DKK 7.46 7.43 7.45 7.44
Sweden SEK 9.43 9.01 9.28 9.13
Norway NOK 8.02 8.28 8.01 8.37
UK GBP 0.69 0.71 0.68 0.68
89

iNcome statemeNt
REvENUE
Operating revenue consists mainly of fees from the hotel activities, including
management and franchise fees, and sales done in owned and leased hotels.
Fee revenue is included in the income statement for the period it relates to,
while revenue from sales in the hotels are included in the income statement
when the services have been rendered.
Revenue is measured at the fair value of the consideration received or receivable
and represents amounts receivable for goods and services provided in the
normal course of business, net of discounts and sales related taxes.
Interest income is accrued on a time basis, by reference to the principal outstanding
and at the effective interest rate applicable.
Dividend income from investments is recognised when the shareholders rights
to receive payment have been established.
COST OF GOODS SOlD
Cost of goods sold relates mainly to cost of goods in restaurants (Food &
Beverage) incurred to generate revenue.
lEASING
As a lessee, Rezidor SAS has entered into operating lease contracts. The lease
cost for operating lease contracts is recognised on a straight-line basis unless
another systematic basis is a better representative of the time pattern of the
benefits to the group.
PERSONNEl COST
Personnel costs comprise salaries and wages as well as social security costs,
pension contributions, etc. for the companies staff.
OTHER OPERATING ExPENSES
Other operating expenses include expenses related to operating the hotels
such as heat, light, power, IT and telecommunication, as well as expenses
related to sale, marketing and administration such as fee expenses and commissions.
FINANCIAl INCOME AND ExPENSES
These items include interest income and expenses, realised and unrealised exchange
gains and losses on securities and shares, debts and foreign currency
transactions, value adjustments of financial assets, addition or deduction of
amortisation relating to mortgage debt, as well as cash discounts etc.
TAxATION
Income tax expense represents the sum of the tax currently payable and
deferred tax.
The tax payable is based on taxable profit for the year. Taxable profit differs
from profit as reported in the income statement because it excludes items of
income or expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Group’s liability for
current tax is calculated using tax rates that have been enacted or substantively
enacted by the balance sheet date.
Deferred tax is recognized on difference between the carrying amount of assets
and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit, and is accounted for using the balance
sheet liability method. Deferred tax liabilities are generally recognized for all taxable
temporary differences and deferred tax assets are recognized to the extent
that is probable that taxable profits will be available against which deductible
temporary differences can be utilized. Such assets and liabilities are not
recognized if the temporary difference arises from goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities
in a transaction that affects neither the taxable profit nor the accounting profit.
90
Notes
Deferred tax liabilities are recognized for taxable temporary differences arising
on investments in subsidiaries and associates, and interest in joint ventures,
except where the Group is able to control the reversal of the temporary difference
and it is probable that the temporary difference will not reverse in the
foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the assets to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset realized. Deferred tax is charged
or credited to profit or loss, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt within equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable
right to set off current tax assets against current liabilities and when they relate
to income taxes levied by the same taxation authority and the Groups intends
to settle its current tax assets and liabilities on a net basis.
A policy has been adopted for writing down deferred tax assets relating to tax
losses carried forward based on the expected utilization periods for the losses
in accordance with forecasted, future results. Losses carried forward that are
expected to be utilized within the 1 to 5 years are valued at 75%, 6 to 10 years
at 50%, 11 to 15 years at 25% and after 15 years at zero.
BaLaNce sHeet
GOODWIll
Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity
represents the excess of the cost of the acquisition over the Group’s interest
in the net fair value of the identifiable assets, liabilities and contingent liabilities
of the subsidiary or jointly controlled entity recognized at the date of acquisition.
Goodwill is initially recognized as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the
Group’s cash-generating units expected to benefit from the synergies of the
combination. Cash-generating units to which goodwill has been allocated are
tested for impairment annually or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the cash-generating
unit is less than the carrying amount of the unit, the impairment loss is allocated
first to reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rate on the basis of the carrying
amount of each asset in the unit. An impairment loss recognized for goodwill is
not reversed in a subsequent period.
On disposal of a subsidiary or a jointly controlled entity, the attributable amount
of goodwill is included in the determination of the profit or loss on disposal.
OTHER INTANGIBlE ASSETS
Acquired intangible assets in the form of rights are measured at cost less
accumulated amortisation. These rights are amortised over the term of the
agreement.
Intangible assets are written down to the lower of recoverable amount and
carrying amount.
PROPERTy, PlANT AND EQUIPMENT
Land, buildings, and fixed installations as well as machinery and equipment are
measured at cost less accumulated depreciation and write-downs. No depreciation
is effected for land.
Cost includes the acquisition price, costs directly related to the acquisition, and
expenses of making ready the asset until the time when it is ready to be put
into operation.

Interest and other finance costs relating to tangible assets during the manufacturing
period are recognised in the income statement, except for interest and
other finance cost related to construction of new hotel buildings, where these
costs are capitalised and depreciated.
The basis of depreciation is cost less estimated residual value after ended
useful life. Depreciation is provided straight-line with the following percentages
based on an assessment of the assets’ estimated useful lives:
Buildings 2,5 %
Fixed installations and technical improvements 10,0 %
Guest room furniture, fixture and equipment 15,0 %
Other FF&E and machinery 20,0 %
Tangible assets are written down to the lower of recoverable amount and
carrying amount.
Profits and losses from the sale of tangible assets are calculated as the difference
between the selling price less selling expenses and the carrying amount
at the time of sale. Profits or losses are recognised in the income statement
together with depreciation and write-downs.
INvESTMENTS IN ASSOCIATES AND INTEREST IN jOINT vENTURES
An associate is an entity over which the Group has significant influence and
that is neither a subsidiary nor an interest in a joint venture. Significant influence
is the power to participate in the financial and operating policy decisions
of the investee but is not control or joint control over those policies.
A joint venture is a contractual arrangement whereby the Group and other parties
undertake an economic activity that is subject to joint control, that is when
the strategic financial and operating policy decisions relating to the activities
requires the unanimous consent of the parties sharing control.
The results, assets and liabilities of associates and joint ventures are incorporated
in these financial statements using the equity method of accounting,
except when the investment is classified as held for sale, in which case it is
accounted for under IFRS 5 Non-Current Assets Held for Sale and Discontinued
Operations. Under the equity method, investments in associates and joint
ventures are carried in the consolidated balance sheet at cost as adjusted for
post-acquisition changes in the Group’s share of the net assets of the associate,
less any impairment in the value of individual investments. Losses of an
associate in excess of the Groups interest in that associate (which includes any
long-term interests that, in substance, form part of the Group’s net investment
in the associate) are not recognized.
Any goodwill arising on the acquisition of the Group’s interest in a jointly controlled
entity is accounted for in accordance with the Group’s accounting policy
for goodwill arising on the acquisition of a subsidiary (see below).
OTHER SHARES AND PARTICIPATIONS
Other shares and participations are measured at fair value at the balance sheet date.
INvENTORIES
Inventories are measured at the lower of cost (using the FIFO principle) and
net realisable value. Cost of goods for resale, raw materials and consumables
consist of purchase price plus handling cost.
RECEIvABlES
Receivables are measured at amortised cost, usually equalling nominal value,
less provisions for bad debts.
SHAREHOlDERS’ EQUITy
Dividends are recognised as a liability at the time of resolution to this effect at
the general meeting. The recommended dividends for the financial period are
disclosed under a separate caption under “Shareholders’ equity”.
PROvISIONS
Provisions for obligations related to lease contracts and management contracts
Notes
are made if a contract is considered onerous. Other provisions are recognised
and measured as the best estimate of the expenses required for settling the
liabilities at the balance sheet date. Provisions that are estimated to mature
in more than one year after the balance sheet date are measured at their
discounted value.
MORTGAGE DEBT
Mortgage debt is at the time of borrowing recognised at cost, equalling the
proceeds received less transaction costs incurred, and it is subsequently measured
at amortised cost, which is equal to the capitalised value generating from
applying the effective-interest method.
OTHER FINANCIAl lIABIlITIES
Other financial liabilities are recognised at amortised cost, usually equalling
nominal value.
RETIREMENT BENEFIT OBlIGATIONS
Several companies within the Group have established pension plans for its
employees. These pension commitments are mainly secured through various
pension plans. These vary considerably due to different legislation and agreements
on occupational pension systems in the individual countries.
For pension plans where the employer has accepted responsibility for defined
contribution solutions, the obligation to employees ceases when contractual
premiums have been paid. For other pensions plans where defined benefit pensions
have been agreed, the commitments do not cease until the contractual
pensions have been paid. The Group calculates its pension commitments for
the defined benefit pension plans. Calculations of commitments are based on
estimated future final salary. An estimate of funded assets is made at the same
time.
Pension costs for the year comprise the present value of pension earnings for
the year, plus interest on the obligation at the beginning of the year, less return
on funded assets. Amortization of deviations from estimates and plan amendments
is added to this total for certain pension plans. Plan amendments and
deviations between anticipated and actual results for estimated pension commitments
and funded assets are amortized over the average remaining working
lives of the employees participating in the pension plan.
Cumulative actuarial deviations from estimates of up to 10% of the greater of
pension obligations and pension assets are included in the so-called corridor
and are not amortized. When the cumulated actuarial deviations from estimates
exceeds this 10% limit, the excess amount is amortized over a 15-year period,
which corresponds to the average remaining employment period.
FINANCIAl RISK MANAGEMENT
Rezidor SAS is exposed to interest rate- currency- credit- and liquidity risks.
According to the policy, Rezidor SAS should not use derivative financial instruments
to hedge the financial risks. As a result of Rezidor SAS’ strategy not to
own real estate, the risks from financing activities are limited.
INTEREST RATE RISK
Rezidor SAS’ main financing risk is related to the ability to control and meet its
off-balance sheet commitments under fixed leases and management contracts
with guarantees. These commitments are normally limited to an agreed maximum
financial exposure for Rezidor SAS for the entire term of the contracts
(cap). Such cap usually amounts to the equivalent of 2–3 years fixed lease or
guaranteed result. If the caps are utilised, the contracts will continue without
further commitments of guaranteed cash flows to the property owners. In order
to manage and control the off balance sheet commitments, a financial policy
was implemented some years ago.
All liabilities to financial institutions are variable rate loans.
CURRENCy RISK
Exposure to foreign currency fluctuations is mainly related to the conversion of
the accounting for foreign entities into Euro. Activities in foreign entities, which
includes owned and leased hotels, are typically carried out in local currency.
91

Furthermore, there is an exposure to foreign currency fluctuation in the Danish
entities related to management and franchise fees, which are typically invoiced
in foreign currency.
CREDIT RISKS
Credit risks related to financial assets equal the values included in the balance
sheet. In some cases Rezidor SAS has granted loans to hotel owners in early
stages of new projects. Appropriate interest rates, repayment schedules and
security arrangements have been agreed upon. As of 31st December 2005,
there were no concentrations of credit risks.
lIQUIDITy RISKS
It is the policy of Rezidor SAS that the raising of capital and placement of
excess liquidity is managed centrally. Furthermore the Group has objectives for
liquidity reserves, such as excess cash and irrevocable credit facilities, that the
Group at any time should have available.
FAIR vAlUE
The fair value of Rezidor SAS financial assets and financial liabilities correspond
to their book values.
THE CASH FlOW STATEMENT
The cash flow statement is presented using the indirect method. It shows cash
flows from operating activities, investing activities and financing activities as
well as the cash and cash equivalents at the beginning and the end of the
financial period.
Cash flows from the acquisition and divestment of enterprises are shown separately
under “Cash flow from investing activities”. Cash flows from acquired
enterprises are recognised in the cash flow statement from the time of their
acquisition, and cash flows from divested enterprises are recognised up to the
time of sale.
“Cash flow from operating activities” is calculated as operating income before
tax adjusted for non-cash operating items, increase or decrease in the working
capital and change in tax position.
“Cash flow from investing activities” includes payments in connection with the
acquisition and divestment of enterprises and activities as well as the purchase
and sale of intangible and tangible assets as well as investments.
“Cash flow from financing activities” includes changes in the size or composition
of the Group’s issued capital and related costs as well as the raising of loans,
instalments on interest-bearing debt, and payment of dividends.
“Liquid funds” includes bank deposits, cash in hand and liabilities to financial
institutions.
Cash flows denominated in foreign currencies, including cash flows in foreign
subsidiaries, are translated at average monthly rates, which essentially reflect
the rates at the date of payment. Cash at year end is translated at the rates at
the balance sheet date.
DEFINITION OF RATIOS
Profit margin % = Profit margin x 100
Revenue
Return on capital = Operating income plus financial income x 100
employed Balance sheet total less non–interest bearing debt
92
Notes
Note 5 criticaL JUdGemeNts iN aPPLyiNG tHe eNtity’s
accoUNtiNG PoLicies
In the process of applying the entity’s accounting policies, which are described
here above in note 4, management has made following judgments that have the
most significant effect on the amounts recognized in the financial statements.
FOR BUSINESS COMBINATION :
IFRS 3 has been adopted for business combinations for which the agreement
date is or after 31 March 2004.
Therefore the Group has applied the revised accounting policy for goodwill
prospectively from the beginning of its first annual period beginning on or after
31 March 2004. Nevertheless, the Group had no acquisitions during 2004
accounting period. The Group carried goodwill in its balance sheet at cost less
accumulated depreciation and accumulated impairment losses. Following IFRS
3, Goodwill is not subject to depreciation but to impairment testing (see here
below in note 6)
As accounting election, the Group used the books values instead of the fair
values when the costs of the business combination were allocated.
FOR AMORTIzING THE INTANGIBlE ASSETS:
Following the New Franchise Agreement, the brands of the Group have been
valued and thus classified as intangible asset. This intangible asset has been
depreciated on a linear basis throughout its useful life which is the lifetime of
the New Franchise Agreement.
Note 6 Key soUrces of estimatioN UNcertaiNty
The key assumptions concerning the future, and other key sources of estimation
uncertainty at the balance sheet date, that could have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are discussed here below.
FOR GENERAl IMPAIRMENT TESTING:
At least once a year, tests are performed to look for the existence of impairment.
At each year end (closing date), a review is conducted to look for any
indication that the company’s tangible, intangible assets and contracts are impaired
and if this is the case, an assessment is done of the recoverable amount
of the individual assets and contracts (or the cash-generating unit to which they
belong) to determine whether impairment exists. The method used for testing is
the net present value (NPV) technique using the internal discount rate (WACC:
see table hereunder) which is recalculated regularly and per region. The cash
flows discounted are based on long range plans. If the net present value of
these long range plans shows a negative NPV, then impairment is considered
on the related tangible and intangible assets or contracts.
FOR IMPAIRMENT ON GOODWIll:
The Group tests goodwill annually for impairment, or more frequently if there
are indications that goodwill might be impaired. The recoverable amounts are
determined from value in use calculations. The key assumptions for the value
in use calculations are those regarding the discount rates, growth rates and
expected changes to selling prices and direct costs during the period. Management
estimates discount rates using the WACC that reflect current market
assessments for the time value of money and the risks specific to the related
entity. The growth rates are based on internal and industry growth forecasts.
Changes in selling prices and direct costs are based on past practices and
expectations of future changes in the market. The Group prepares cash flow
forecasts derived from the most recent financial budgets approved by management
over the length of the lease contracts. The rate of growth utilized does not
exceed the average long-term growth rate for the relevant markets. The rates
used to discount forecasted cash flows is described in the table here below.
FOR IMPAIRMENT ON MANAGEMENT CONTRACTS AND lEASE
AGREEMENTS
The same method of impairment is applied to test if management contracts or
lease agreements are onerous and should then be impaired.

DISCOUNT RATES USED
(WEIGHTED AvERAGE COST OF CAPITAl: WACC)
region Wacc %
Europe 8.51
Denmark 8.49
Norway 8.89
Russia 12.45
South Africa 12.25
Sweden 8.54
Switzerland 6.87
UK 9.43
US 9.80
Africa 19.00
Note 7 GroUP comPaNies aNd LeGaL strUctUre
REzIDOR SAS HOSPITAlITy HOlDINGS AB HAS THE FOllOWING SUBSIDIARIES:
Bahrain registered in ownership % share capital
Rezidor SAS Hotels & Resorts, Mdl East W.l.l Manama Town 51 MUSD 1.0
Belgium
SAS Hotel Personnel S.A. Brussels 100 MEUR 0.1
Rezidor SAS Hospitality S.A. Brussels 100 MEUR 0.1
SAS Hotel Brussels leopold SA Brussels 100 MEUR 0.1
GH Holding SA Brussels 100 MEUR 0.1
SAS Hotel Brussels S.A. Brussels 100 MEUR 10.3
Rezidor SAS Park Belgium Nv/SA Brussels 100 MEUR 0.1
cyprus
Doriscus Enterprise limited limassol 16 MEUR 23.7
china
SAS Royal Hotel, Beijing, Co., ltd Beijing 50 MUSD 9.0
denmark
Notes
SAS Hotels A/S Danmark Copenhagen 100 MDKK 210.0
SAS Falconer Center A/S Frederiksberg 100 MDKK 1.2
SAS International Hotels Management A/S Copenhagen 100 MDKK 2.0
SIHSKA A/S Copenhagen 100 MDKK 3.0
SAS Scandinavia Hotel Aarhus A/S Aarhus 100 MDKK 0.5
SAS International Hotels Selection A/S Copenhagen 100 MDKK 5.0
SAS Riga Hotel A/S Copenhagen 100 MDKK 0.5
Hotel Development South Africa A/S Copenhagen 100 MDKK 1.0
SAS Hotel Kiev A/S Copenhagen 100 MDKK 1.0
SAS Hotel Investment Egypt A/S Copenhagen 100 MDKK 1.0
SAS Hotel Investment France A/S Copenhagen 100 MDKK 1.0
Hotel Investment Turkey A/S Copenhagen 51 MDKK 1.0
Nordrus joint venture A/S Copenhagen 100 MDKK 0.5
SAS Hotel Investment A/S Copenhagen 100 MDKK 1.0
Hotel Invest UK A/S Copenhagen 100 MDKK 5.0
Rezidor SAS Country A/S Copenhagen 100 MDKK 1.5
Rezidor SAS Park A/S Copenhagen 100 MDKK 1.0
Rezidor SAS Regent A/S Copenhagen 100 MDKK 2.0
Rezidor SAS lifestyle A/S Copenhagen 100 MDKK 1.0
Rezidor SAS loyalty Management A/S Copenhagen 100 MDKK 1.0
Rezidor SAS Cornerstone A/S Copenhagen 100 MDKK 2.4
Rezidor SAS Management & Development A/S Copenhagen 100 MDKK 0.5
93

Rezidor SAS Hospitality A/S Copenhagen 100 MDKK 83.0
Casino Denmark A/S Copenhagen 50 MDKK 1.0
Casino Copenhagen A/S Copenhagen 50 MDKK 0.0
Nordrus Hotels Holdings A/S Copenhagen 26.08 MDKK 1.2
Africa joint venture Holding A/S Copenhagen 100 MDKK 0.5
egypt
Al Quseir Hotell Company S.A.E Al Quseir City 20 MEGP 30
estonia
RDS Hotelli AS Tallin 14.10 MEEK 4.1
Astlanda Hotelli AS Tallin 100 MEEK 0.4
france registered in ownership % share capital
Rezidor SAS Resort France Nice 100 MEUR 0.0
Rezidor SAS Hospitality France S.A.S. Paris 100 MEUR 2.4
SAS Hotels France S.A.S. Paris 100 MEUR 2.5
Royal Scandinavia Hotel Bordeaux S.A.S. Paris 100 MEUR 0.0
Royal Scandinavia Hotel Nice S.A.S. Nice 100 MEUR 2.4
Royal Scandinavia Hotel Marseille S.A.S. Paris 100 MEUR 0.0
Rezidor SAS Park France S.A.S. Paris 100 MEUR 0.0
Rezidor SAS lyon S.A.S. lyon 100 MEUR 0.0
Rezidor SAS Aix les Bains S.A.S. Aix les Bains 100 MEUR 0.0
Rezidor Park Nancy S.A.S. Nancy 100 MEUR 0.0
Rezidor Park Mâcon S.A.S. Mâcon 100 MEUR 0.0
Rezidor Park lyon–Ouest S.A.S. la Tour de Salvagny 100 MEUR 0.0
Rezidor Park Arcachon S.A.S. Arcachon 100 MEUR 0.0
Rezidor Park Orange S.A.S. Orange 100 MEUR 0.0
Rezidor les loges S.A.S. Aix les Bains 100 MEUR 0.0
Germany
zweite Rezidor SAS Regent Berlin GmbH Munich 100 MEUR 0.0
SAS Hotels Deutschland GmbH Hamburg 100 MEUR 0.2
SAS Hotels Management GmbH Hamburg 100 MEUR 0.0
Marliane Betriebs GmbH Hamburg 100 MEUR 0.0
SAS Hotel Dresden GmbH Hamburg 100 MEUR 0.0
SAS Hotel Rügen GmbH Hamburg 100 MEUR 0.0
SAS Hotel Investitions GmbH Hamburg 100 MEUR 0.0
SAS Hotel Hannover GmbH Hamburg 100 MEUR 0.0
SAS Hotel Köln GmbH Hamburg 100 MEUR 0.0
SAS Hotel Wiesbaden GmbH Hamburg 100 MEUR 0.0
SAS Hotel Berlin GmbH Hamburg 100 MEUR 0.0
Rezidor SAS Regent Berlin GmbH Hamburg 100 MEUR 0.0
SAS Hotel Karlsruhe GmbH Hamburg 100 MEUR 0.0
SAS Hotel Frankfurt GmbH Hamburg 100 MEUR 0.0
Country Inns and Suites FRG Hotel Management GmbH Munich 100 MEUR 0.8
Country Inn München Frankfurter Ring GmbH Munich 100 MEUR 0.0
Country Inn München Ost GmbH Munich 100 MEUR 0.0
Rezidor SAS lifestyle Hotels Deutschland GmbH I. G. Munich 100 MEUR 0.0
Rezidor SAS Park Deutschland GmbH Munich 100 MEUR 0.0
94
Notes

Netherlands
SAS Hotel Amsterdam B.v. Amsterdam 100 MEUR 0.0
Norway
Rezidor SAS Hospitality Norway AS Oslo 100 MNOK 102.0
SAS Royal Hotel AS Oslo 100 MNOK 11.3
SAS Hotel Norge AS Bergen 100 MNOK 0.5
SAS Globetrotter Hotel AS Stavanger 100 MNOK 0.5
SAS Atlantic Hotel AS Stavanger 100 MNOK 0.5
SAS Hotels Service Centre AS Oslo 100 MNOK 0.1
Rezidor SAS Park Norway AS Oslo 100 MNOK 0.1
russian federation
zAO Hotel Corporation St. Petersburg 36.37 MRUR 40.9
south africa
RHW joint venture Southern Africa (prop) ltd. Waterfront 50 MRAND 6.5
RHW Management Southern Africa (prop) ltd. Cape Town
sweden registered in ownership % share capital
Rezidor SAS Hotel AB (dormant since 01.01.05) Solna 100 MSEK 5.2
Rezidor SAS Sweden AB Sundbyberg 100 MSEK 0.1
Rezidor SAS Hospitality Sweden AB Sundbyberg 100 MSEK 18.0
Rezidor SAS Services Sweden AB Sundbyberg 100 MSEK 0.5
AB Strand Hotel Stockholm 100 MSEK 0.3
Royal viking Hotel AB Stockholm 100 MSEK 8.0
Hotel AB Bastionen Gothenburg 100 MSEK 1.0
SAS Arlandia Hotel AB Stockholm 100 MSEK 1.0
SAS SkyCity Hotel AB Stockholm 100 MSEK 1.0
SAS Royal Hotel AB Malmö 100 MSEK 1.0
Rezidor SAS Park AB Sundbyberg 100 MSEK 0.1
switzerland
Rezidor SAS Switzerland AG zug 99 MCHF 0.1
SAS Hotels Switzerland AG Basel 97 MCHF 0.1
turkey
Feri Otelcilik ve Turizm A.S Istanbul 10 BTl 135
Macka Otelcilik Anonim Sirketi Istanbul 99.30 BTl 50
United Kingdom
Notes
SAS Hotels UK ltd. Manchester 100 MGBP 0.0
SAS Portman (Holdings) ltd Manchester 100 MGBP 0.0
SAS Hotel Manchester ltd Manchester 100 MGBP 0.0
SAS Hotel leeds ltd Manchester 100 MGBP 0.0
SAS Hotel Edinburgh ltd Manchester 100 MGBP 0.0
SAS Hotel Stansted Airport ltd Manchester 100 MGBP 0.0
SAS Hotel Stansted ltd Manchester 100 MGBP 0.0
Rezidor lifestyle Glasgow ltd Manchester 100 MGBP 0.0
Rezidor SAS Hotel Management ltd Manchester 100 MGBP 0.0
Rezidor SAS Park UK ltd Manchester 100 MGBP 0.0
Park Hotel Heathrow ltd Manchester 100 MGBP 0.0
Park Hotels Management limited Manchester 100 MDBP 0.0
Rezidor lifestyle Edingburgh limited Manchester 100 MGBP 0.0
95

Rezidor SAS Hospitality Group AB is owned by Carlson Hotels Worldwide – USA
(for 25%) and by SAS – Sweden (for 75%). Rezidor SAS Hospitality Holdings AB
is owned by Rezidor SAS Hospitality Group AB for 100%. The financial statements
are consolidated at the level of Rezidor SAS Hospitality Holdings AB.
96
Rezidor SAS
Country A/S
(Denmark)
Country Inn
Operations
Preferred shares
75% – 30% votes
SAS AB
(Publ)
(Sweden)
Rezidor SAS
Park A/S
(Denmark)
Park Inn
Operations
Note 8 reLated Parties
Rezidor SAS
Regent A/S
(Denmark)
Regent
Operations
Related parties with controlling influence: SAS AB, the ultimate parent company
and Carlson owning 25% of the shares. Other related parties with whom
Rezidor SAS has had transactions: The SAS AB Group and the management of
Rezidor SAS.
The business relationship with SAS (apart from the ownership-related transactions,
see Board of Directors’ report and Statement of changes in equity) mainly
involved services for the crew and staff of SAS throughout the world, and
administration of parts of SAS’ frequent flyer program, Eurobonus. Rezidor SAS
also buys services from SAS Finance. All transactions with SAS are based on
commercial terms and professional attitude.
Rezidor SAS has established a financial grouping of liquid funds, which utilizes
the services from SAS Finance.
As at year-end, Rezidor SAS had ordinary current receivable claims towards
SAS of TEUR 18,422(10,248) and ordinary current liabilities of TEUR 21,865
(91,304)
1.6 % (2.2 % in 2004) of Rezidor SAS operating revenue represents sales to
other companies within the SAS Group.
Remuneration to the Board of Directors and the Board of Management is
disclosed in note 10 below.
Notes
75% 25%
Rezidor SAS Hospitality
Group AB
(Sweden)
Rezidor SAS Hospitality
Holdings AB
(Sweden)
Rezidor SAS
Hospitality A/S
(Denmark)
Rezidor SAS
lifestyle A/S
(Denmark)
lifestyle
Operations
Ordinary shares 100% – 60% votes
100% shares and votes
– Rezidor SAS
Hospitality
Norway A/S
– Rezidor SAS
Sweden AB
– Hotel Invest UK A/S
– SAS Hotels A/S
Denmark
Radisson
SAS
Operations
Carlsson Hotels
(USA)
Carlsson Sub
(USA)
Preferred shares
25% – 10% votes
Rezidor SAS
loyalty
Management A/S
(Denmark)
Rezidor SAS
Cornerstone A/S
(Denmark)
Rezidor SAS Hospitality Holdings AB is consolidated as a subsidiary in the
consolidated financial statements of SAS AB, Stockholm. The financial statements
are available at www.scandinavian.net.
The business relationship with Carlson mainly consisted in a flow of operating
costs related to the use of the brands and for the use of the reservation system
of Carlson.
As at year-end, Rezidor SAS had ordinary current liabilities of TEUR 2,199
(2,538). The total amount of pro forma operating costs paid is 6,087 (4,412) and
the actual being 11,151 (13,509).
Note 9 oPeratiNG reveNUe
operating revenue per
area of operation
2005
2004
Rooms revenue 321,424 266,317
Food & Beverage Revenue 183,707 156,739
Fee revenue 45,904 36,272
Other revenue 36,011 39,400
total 587,046 498,728

Note 10 PayroLL cost, NUmBer of emPLoyees, etc
Payroll cost 2005 2004
Salaries 153,327 136,967
Pension costs 5,737 2,503
Social security 26,701 21,953
total 185,765 161,423
The average number of employees in Rezidor SAS during 2005 was 4,922
(4,454).
2005 2004
men Women men Women
Denmark 132 115 115 141
Norway 513 765 496 822
Sweden 202 323 278 383
UK 634 544 335 323
Germany 475 519 396 415
France 163 160 146 146
Belgium 180 92 150 80
Other 57 48 133 95
totals 2356 2566 2049 2405
4922 4454
2005 2004
total of which men total of which men
Board members 6 83% 5 100%
Presidents and
Other senior executives
5 100% 5 100%
Remuneration to the external Members of the Board of Directors amounted to
TEUR 30 (26). Salaries and other remuneration to the management team was
TEUR 2,035 (2,184). Rezidor SAS also covered housing and company cars for
the management team in total TEUR 286 (313). Part of the remuneration to
Rezidor SAS management team is paid as bonus.
In the event that Rezidor SAS decides to terminate the Managing Director for
reasons other than breach of contract or gross negligence, severance pay
would amount to three years annual remuneration. For the other nine executives
in the management team severance pay would amount to between one
and three year’s annual remuneration.
Note 11 reNtaL eXPeNse, iNsUraNce of ProPerties
& ProPerty taX
2005 2004
Minimum lease payments 121,729 99,934
Contingent lease payments 18,450 19,514
Other 17,865 18,229
total rent, insurance and tax 158,044 137,677
Notes
Note 12 fiNaNciaL items iN teUr
reZsas Group 2005 2004
Interest income received from SAS 173 113
Other Financial Income 1) 7,559 1,776
Exchange differences 155
financial income 7,732 2,044
Interest expense paid to SAS –3,320 –3,280
Other Financial expense –2,847 –383
Exchange differences –1,078 0
financial expense –7,245 –3,663
Net 487 –1,619
1) Includes the following value adjustments on shares (at fair value)
held by the following companies:
SAS Hotel Investment AS: 3,000 TEUR for RBS Hotelli AS
SAS Hotel Kiev A/S: 3,000 TEUR for Doriscus
Enterprise ltd
SAS Hotels A/S Denmark: 368 TEUR for SAS Royal Hotel
Beijing Co ltd
CI&S FRG GmbH: 307 TEUR for Timmerdorfer
Strand
total 6,675 teUr
Note 13 Pro forma taX oN ordiNary resULt
income tax: 2005 2004
Denmark –285 –349
Norway –1,646 –1,155
Sweden –1,112 –2,223
United Kingdom –1,347 –1,014
Belgium –798 –822
Netherlands –372 –200
France –31 –275
Switzerland –55 0
Germany 2 139
deferred tax:
–5,644 –5,899
Current year –3,382 3,358
–3,382 3,358
total Pro forma tax –9,026 –2,541
Pro forma tax is calculated at the below mentioned tax rates. Pro forma taxation for
other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
country tax rate (2005) tax rate (2004)
Denmark 28% 30%
Norway 28% 28%
Sweden 28% 28%
United Kingdom 30% 30%
Belgium 34% 34%
Netherlands 31% 34%
France 34% 35%
Switzerland 31% –
Germany 40% 40%
97

The pro forma tax charge for the year can be reconciled to the pro forma profit per the pro forma income statement as follows:
98
2005 % 2004 %
Pro forma operating income before tax 35,474 12,103
Tax at the domestic income tax rate of 28% –9,933 28.0 –3,389 28.0
Tax effect of expenses that are not deductible in determining taxable income 1,884 –5.3 –704 5.8
Tax effect of income that is not taxable 8,159 –22.9 4,675 –38.6
Effect of different tax rates of subsidiaries operating in other jurisdictions –942 2.6 –702 5.8
Change in loss carry forward not capitalized –7,055 19.9 –5,539 45.8
Withholding taxes –199 0.6 –326 2.7
Adjustment of prior years taxes 2,442 –6.9 86 –0.7
Deferred tax –3,382 9.5 3,358 –27.7
Pro forma tax expense and effective tax rate for the year –9,026 25.4 –2,541 20.9
Pro forma net income after tax (before minority share) 26,448 9,562
As soon as the mother company is now located in Sweden, the applicable
domestic tax rate is the Swedish one (28%). In the last annual report (2004),
the domestic tax rate considered was the Danish one (30%) which is now at
the same level as the Swedish one (28%). Therefore, there is no pro forma difference
in applying this rate in 2005. but there is one for 2004 (and represents a
domestic tax difference of 242 TEUR – see hereafter).
2004 tax rate income tax
Pro forma operating income before tax 12,103 28% 3,389
Pro forma operating income before tax 12,103 30% –3,631
Pro forma tax difference 12,103 –2% –242
deferred tax in the balance sheet 2005 2004
Deferred tax asset 13,084 11,535
Deferred tax liability –14,303 –9,143
Net position 31-12-2005 –1,219 2,392
The movements for the year in Rezidor SAS’ net deferred tax position was as follows:
2005 2004
Net deferred tax asset/liability, opening balance 2,392 –522
Charged to income for the year –3,382 3,358
Deferred tax in acquired companies 0 0
Translation differences –229 –444
Net deferred tax asset/liability, closing balance –1,219 2,392
The above-mentioned tax losses can be carried forward without time limit.
The total tax value of net operating losses not included in the deferred tax
asset is TEUR 27,426 (19,124).
Notes

Note 14 iNtaNGiBLe aNd taNGiBLe fiXed assets (Pro forma)
Goodwill
other
intangible
assets
construction in
progress
machinery and
equipment
Buildings
and install.
Land and
improvements
Acquisition value 01-01-2004 15,139 55,971 44,485 111,681 90,524 3,260 321,060
Investments 14,630 19,234 19,838 126 53,828
Sales/Disposals –30 –1,414 –17,739 –3,523 –22,706
Reclassifications –54,211 11,567 42,335 309 0
Translation adjustment 428 14 –435 –675 –816 77 –1,407
Net BooK vaLUe 31-12-2004 15,567 55,985 4,439 140,393 134,142 249 350,775
Acc.depreciation 01-01-04 –1,523 –34 –78,106 –62,419 –1 –142,083
Depreciation accord. to plan –1,280 –1,225 –12,015 –4,774 –19,294
Sales/Disposals 1,065 9,809 6 10,880
Translation adjustment –35 –199 879 871 –5 1,511
Acc.depreciation 31-12-04 –2,838 –1,458 –88,177 –56,513 0 –148,986
Net BooK vaLUe 31-12-2004 12,729 54,527 4,439 52,216 77,629 249 201,789
Goodwill
other
intangible
assets
Notes
construction in
progress
machinery and
equipment
Buildings
and install.
Land and
improvements
Acquisition value 01-01-2005 15,567 55,985 4,439 140,393 134,142 249 350,775
Investments 0 2,504 13,806 15,723 2,570 2 34,605
Sales/Disposals 0 0 0 –12,323 –56,868 –131 –69,322
Reclassifications 0 5,861 –9,171 2,278 1,020 12 0
Other adjustments 221 8 –779 180 124 5 –241
Translation adjustment 130 103 19 603 3,078 9 3,942
Net BooK vaLUe 31-12-2005 15,918 64,461 8,314 146,854 84,066 146 319,759
Acc.depreciation 01-01-05 –2,838 –1,458 –88,177 –56,513 0 –148,986
Depreciation accord. to plan –35 –1,821 –12,559 –6,051 –3 –20,469
Sales/Disposals 0 10 1,743 651 0 2,404
Other Adjustments –460 –131 1,245 –237 0 417
Translation adjustment 12 –7 –212 –363 0 –570
Acc.depreciation 31-12-05 –3,321 –3,407 0 –97,960 –62,513 –3 –167,204
Net BooK vaLUe 31-12-2005 12,597 61,054 8,314 48,894 21,553 143 152,555
Net BooK vaLUe 31-12-2004 12,729 54,527 4,439 52,216 77,629 249 201,789
total
total
99

GOODWIll
cost
At 1 january 2004 15,139
Exchange difference 558
At 1 january 2005 15,697
Elimination of amortization accumulated
prior to the adoption of IFRS 3
Arising on acquisition of a subsidiary –
Eliminated on disposal of a subsidiary –
Reclassified as held for sale –
Other adjustments 221
at 31 december 2005 15,918
amortisation
At 1 january 2004 –1,523
Exchange differences –23
Amortisation for the year –1,315
At 1 january 2005 –2,861
Other adjustments –460
Elimination of amortisation accumulated
prior to the adoption of IFRS 3
at 31 december 2005 –3,321
Note 15 oWNersHiP iN associated comPaNies aNd otHer sHares
associated companies
ownership (%)
Book value
01.01.05
share of
income
dividend
investments
other
Book value
31.12.05
Casino Denmark A/S 50.0% 94 2 0 0 –1 95
Casino Copenhagen K/S 50.0% 4,075 2,094 –3,087 0 –10 3,072
RHW jv Southern Africa (P) ltd 50.0% 1,429 –689 0 0 –352 388
zAO St-Petersburg (*) 35.0% 5,638 3,320 0 0 –8,958 0
Nordrus Hotel Holding A/S
Rezidor SAS Hotels & resorts
26.1% 99 –113 0 0 175 161
Middle East Wll
50.0%
0
438
0
0
452
890
SAS Royal Hotel Beijing Co ltd 50.0% 0 1,161 0 0 –1 1,160
total 11,335 6,213 –3,087 0 –8,695 5,766
(*) The shares of ZAO St-Petersburg have been disposed of during 2005.
other shares and participation
ownership (%)
Book value
01.01.05
share of
income
dividend
investments
other
Book value
31.12.05
Feri Otelcilik ve Turizm A.S 10.0% 2,164 0 0 0 119 2,283
RBS Hotelli AS 14.1% 1,901 0 0 0 2,994 4,895
Al Quesir Hotel Company S.A.E. 20.0% 1,469 0 0 0 217 1,686
Doriscus Enterprise ltd 16.0% 2,325 0 0 384 2,994 5,703
First Hotels Co K.S.C.C 1.8% 0 0 0 2,042 66 2,108
Timmerdorfer Strand 20.0% 0 0 0 0 307 307
Others 123 0 0 33 –62 94
total 7,982 0 0 2,459 6,635 17,076
Net gain on sale of shares 2005 2004
Sales price 6,787 0
Book value –631 0
Gain on sale of shares 6,156 0
100
Notes
–
–
impairment
Impairment loss recognised in the year ended
31 December 2005 and balance at 31 December 2005
Net carrying amount
At 31 December 2005 12,597
At 31 December 2004 12,729
Goodwill acquired in a business combination is allocated, at acquisition, to the
cash generating units that are expected to benefit from that business combination.
The net carrying amount of goodwill had been allocated as follows:
cash Generating units 2005 2004
Radisson SAS Hotel, Amsterdam 1,867 1,867
Rezidor SAS Country A/S – for Country
Inns & Suites FRG Hotelmgt Gmbh
3,813 3,621
SAS Hotels A/S Denmark –
for Radisson SAS Hotel Nice
6,320 6,342
Others 597 899
total net carrying amount 12,597 12,729
Regarding annual impairment testing on Goodwill, refer to note 6.
Net gain on sale of assets 2005 2004
Sales price 799 18,065
Book value –279 –11,826
Transaction cost –424
Net gain 520 5,815
–

Note 16 accoUNts receivaBLe
Current receivables are stated net of an allowance for doubtful accounts of
TEUR 6,852 (5,194).
Note 17 LoNG–term receivaBLes
loans to parties relating to
operation of hotels
2005 2004
12,153
11,475
Other 3,459 2,812
total 15,612 14,287
In some cases Rezidor SAS grants loans to operators of our hotels, or to our
joint venture partners in early stages of new projects. The terms for such loans
vary, but in general there is agreed on interest on the loans and the repayment
schedule is based on the project opening and project progress.
Note 18 casH aNd BaNK
TEUR 2,432 (2,275) of the total cash at bank is restricted to meet the liability
arising from payroll taxes withheld.
Note 19 PeNsioN fUNds, Net
Pension funds, net,
over funded plans
Pension funds, net,
under funded plans
2005 2004
14,472
–1,034
11,616
–612
total 13,438 11,003
Per country 2005 2004
Norway 12,244 9,935
Sweden 1,724 961
Belgium –530 107
total 13,438 11,003
When calculating Rezidor SAS’ pension commitments, the year’s pension earnings
and returns, the following long-term economic assumptions apply to the
Rezidor SAS Group which represent a weighted average:
2005 2004
Discount rate 5.1% 6.4%
long-term rate of return 5.6% 7.7%
Inflation rate 2.3% 3.0%
Future salary adjustments 3.3% 3.0%
Future adjustments of current pension 2.0% 2.0%
In the financial statements, the commitments in the Rezidor SAS Group are
included as specified in the table below. The items “unrecognized amounts”
include deviations from estimates, actuarial gains and losses and plan amendments.
These are allocated according to two methods. Plan amendments are
spread over the average remaining working lives of employees participating
in the plan. Deviations from estimates are amortized over fifteen years when
they exceed 10% of the greater of pension obligations of pension assets. Most
pension plans in Scandinavia are defined benefit plans. Most pension plans are
Notes
secured through insurance companies. The collective pension plans for salaried
employees in Sweden and for employees in Norway are secured through
defined benefit pension plans with insurance companies. For employees in
Denmark Rezidor SAS mainly has defined contribution plans.
defined benefit pension plans 2005 2004
Pensions earned during the year –1,541 –1,274
Interest cost –2,050 –1,696
Expected return on pension assets for
the year
The year’s amortization of deviations
from estimates and plan amendments
impact on income for the year,
net, pertaining to defined benefit
pension plans
2,763 2,403
–53 –121
882 688
defined benefit pension plans, assets 2005 2004
Status December 31
Plan assets 43,436 36,324
Pension commitments –41,923 –30,419
Difference between plan assets and
commitments
Unrecognized plan amendments, and
deviations from estimates including
actual return
1,513 5,905
11,925 5,098
Book assets 13,438 11,003
In some pension plans the actual return has been lower than Rezidor SAS’
estimated long-term return, which is reflected in the item unrecognized
deviations from estimates. Information on actual return is not yet available.
Pension assets, net, including pension commitments, assets under management
and unrecognized plan amendments and deviations from estimates for
the defined benefit pension plans developed as follows:
Pension assets, net 2005 2004
Opening balance 11,003 10,035
Earnings impact for the year –882 –688
Paid-in premium 3,985 1,812
Utilization/payment of client
company funds in Alecta
Change in deviations from estimates
and pension plans
–167 –81
–759 –245
Currency effects 258 170
closing balance 13,438 11,003
Note 20 otHer cUrreNt LiaBiLities
2005 2004
Financing from SAS Group companies 21,865 91,304
Other current liabilities 88,644 84,359
closing balance 110,509 175,663
Liability for VAT, social security and payroll taxes is included in other current
liabilities with TEUR 16,760 (14,707).
101

Note 21 assets PLedGed aNd coNtiNGeNt LiaBiLities
assets pledged 2005 2004
Securities on deposit 2,432 2,275
Book value of secured loans 0 0
contingent liabilities
Miscellaneous guarantees 1,529 1,715
In certain agreements entered into by the members of the group, there are
clauses leading to possible changes in business relations and financial structure,
if the ownership of Rezidor SAS should become subject to a change.
Note 22 LeasiNG commitmeNts
At year-end Rezidor SAS has 62 leasing contracts for hotel buildings, of which
some also include other fixed assets than buildings.
The leasing agreements expire in the following years:
year Number of leasing agreements expiring
2006 – 2009 4
2010 – 2014 7
2015 – 2019 10
2020 – 2024 22
2025 – 2029 6
2030 – 2034 12
2035 – 2040 1
Future leasing expenses for leasing agreements effective on 31st of December
are estimated to:
102
total estimated future leasing expenses
2005 2004
Within 1 year 156,000 132,000
1 – 5 years 644,000 715,000
After 5 years 2,146,000 2,143,000
total 2,946,000 2,990,000
Amounts listed above are a mix of minimum and contingent lease payments,
summarizing the actual amounts.
In contracts containing a minimum lease payment, the financial exposure
related to the minimum lease payments is usually limited (capped) to a maximum
amount for the entire lease period that the minimum lease payments can
exceed a contractually defined variable lease. The maximum excess payments
are usually limited to 2–3 years minimum lease.
Note 23 maNaGemeNt coNtract commitmeNts
The management agreements can have commitments by Rezidor SAS with
respect to financial liabilities. Rezidor SAS has in some cases guaranteed to
the hotel owners a minimum annual cash flow. In most of the agreements the
guarantee is limited to a maximum amount over the term of the agreement as
well as a maximum annual amount. The maximum amount over the term of the
agreement is usually equal to 2–3 times the annual guaranteed amount.
As at the end of 2005, Rezidor SAS had granted some kind of financial commitment
in 51 Management contracts.
The management contracts containing such financial risk for the group will
expire as presented in the table below:
Notes
year Number of management contracts expiring
2006 – 2009 2
2010 – 2014 4
2015 – 2019 14
2020 – 2024 15
2025 – 2029 16
The total guaranteed annual cash flow according to these management contracts
is the following:
year total guaranteed annual cash flow
2006 80,000
2007 79,000
2008 42,000
2009 21,000
2010 15,000
Note 24 LitiGatioN
Rezidor SAS operates in a number of countries around the world and is always
involved in several complex projects and business relationships where there
can be professional disputes on various issues. Most often these situations
finds its solution through negotiations and discussions. In some rare situations
these disputes can lead to major disagreements or claims of violation of law.
Proper accounting for possible financial implications has been done.
Note 25 seGmeNtaL discLosUres
The Group is only engaged in the business segment ”Hotel Operations”.
Revenue, segment assets and additions to tangible and intangible assets
are disclosed within the secondary geographical segments. The segment
information complies with the Group’s accounting policies and internal financial
management.
Fixed assets in the geographical segments include those used directly in the
operation of each segment, including intangible assets, property, plant and
equipment, and investments in associates. The assets are distributed according
to their physical location.
GEOGRAPHICAl – SECONDARy SEGMENT (PRO–FORMA)
2005 revenue segment assets investments
Norway 175,283 83,525 10,982
Sweden 79,269 116,625 6,198
Denmark 64,863 51,461 230
Germany 81,763 30,940 3,988
United Kingdom 100,585 36,778 7,986
Other countries 85,283 45,104 5,221
total 587,046 364,433 34,605
2004 revenue segment assets investments
Norway 160,227 45,072 4,813
Sweden 87,001 152,457 1,851
Denmark 56,613 46,015 105
Germany 66,286 34,537 5,365
United Kingdom 70,806 73,819 30,657
Other countries 57,795 32,592 11,037
total 498,728 384,492 53,828

Note 26 aUditors’ fees
deloitte
Group
2005 2004
Audit assignments 659 407
Other assignments 131 353
total deloitte 790 760
other audit firms
Audit assignments 5 21
Other assignments 344 2
total other audit firms 349 23
total 1139 783
Note 27 recoNciLiatioN from actUaL to Pro forma
INCOME STATEMENT – FROM ACTUAl TO PRO FORMA
thousand eUr
subnotes
actual
2005
from actual
to Pro forma
Pro forma
2005
actual
2004
from actual
to Pro forma
Pro forma
2004
Operating revenue 587,046 587,046 498,728 498,728
Cost of goods sold –43,737 –43,737 –41,255 –41,255
Personnel cost –207,295 –207,295 –182,340 –182,340
Other operating expenses 1 –140,467 5,064 –135,403 –122,433 9,097 –113,336
Gross operating income 195,547 5,064 200,611 152,700 9,097 161,797
Rental expense, insurance of
properties & property tax
Share of income in associated
companies
operating income before depreciation
–158,044 –158,044 –137,677 –137,677
6,213 6,213 3,071 3,071
43,716 5,064 48,780 18,094 9,097 27,191
Depreciation and amortization 2 –19,884 –585 –20,469 –18,114 –1,170 –19,284
Income from sale of shares and
tangible fixed assets
operating income before financial
items
6,676 6,676 5,815 5,815
30,508 4,479 34,987 5,795 7,927 13,722
Financial income 7,732 7,732 2,044 2,044
Financial expenses –7,245 –7,245 –3,663 –3,663
operating income before tax 30,995 4,479 35,474 4,176 7,927 12,103
Tax on ordinary result 3 –7,772 –1,254 –9,026 –321 –2,220 –2,541
Net income after tax 23,223 3,225 26,448 3,855 5,707 9,562
Minority interest
Notes
Net income 23,223 3,225 26,448 3,855 5,707 9,562
103

BAlANCE SHEET – FROM ACTUAl TO PRO FORMA
assets
thousand eUr
NON-CURRENT ASSETS
intangible non-current assets
104
subnotes
actual
2005
from actual
to Pro forma
Pro forma
2005
actual
2004
from actual
to Pro forma
Pro forma
2004
Goodwill 12,597 12,597 12,729 12,729
Other intangible assets 4, 5 62,809 –1,755 61,054 697 53,830 54,527
tangible non-current assets
land, buildings and fixed
installations
75,406 –1,755 73,651 13,426 53,830 67,256
21,695 21,695 77,878 77,878
Machinery and equipment 48,894 48,894 52,216 52,216
Construction in progress 8,314 8,314 4,439 4,439
financial non-current assets
Share of equity in associated
companies
78,903 78,903 134,533 134,533
5,766 5,766 11,335 11,335
Other shares and participations 17,076 17,076 7,982 7,982
Pension funds, net 14,472 14,472 11,003 11,003
Deferred tax asset 13,084 13,084 11,535 11,535
Other long-term receivables 15,612 15,612 14,287 14,287
66,010 66,010 56,142 56,142
total non-current assets 220,319 –1,755 218,564 204,101 53,830 257,931
CURRENT ASSETS
inventory 5,195 5,195 4,533 4,533
receivables
Notes
Accounts receivable 48,312 48,312 35,321 35,321
Other receivables 54,604 54,604 53,289 53,289
102,916 102,916 88,610 88,610
Bank deposits, cash in hand, etc. 6, 7 25,816 11,942 37,758 26,541 6,877 33,418
total current assets 133,927 11,942 145,869 119,684 6,877 126,561
total assets 354,246 10,187 364,433 323,785 60,707 384,492

BAlANCE SHEET – FROM ACTUAl TO PRO FORMA
eQUity aNd LiaBiLities
thousand eUr
EQUITy
subnotes
actual
2005
from actual
to Pro forma
Pro forma
2005
actual
2004
from actual
to Pro forma
Pro forma
2004
Share capital 107 107 80,000 80,000
Translation differences 19,393 19,393 19,312 19,312
Reserves 8 143,545 143,545 6,514 55,000 61,514
Retained earnings 9 –36,895 5,708 –31,187 –41,712 –41,712
Net profit for the year 9 23,223 3,225 26,448 3,855 5,707 9,562
equity attributable to equity
holders of the parent
149,373
8,933
158,306
67,969
60,707
128,676
minority interest 214 214 215 215
total equity 149,587 8,933 158,520 68,184 60,707 128,891
lIABIlITIES
Non-current provisions
Pension commitments 1,034 1,034 2,640 2,640
Deferred tax 14,303 14,303 9,143 9,143
Non-current interest bearing liabilities
15,337 15,337 11,783 11,783
Other long-term liabilities 430 430 0 0
current liabilities
Notes
430 430 0 0
liabilities to financial institutions 37,683 37,683 36,095 36,095
Accounts payable 34,732 34,732 30,943 30,943
Current tax 10 5,968 1,254 7,222 1,117 1,117
Other current liabilities 110,509 110,509 175,663 175,663
188,892 1,254 190,146 243,818 243,818
total liabilities and provisions 204,659 1,254 205,913 255,601 255,601
total equity and liabilities 354,246 10,187 364,433 323,785 60,707 384,492
105

CASH FlOW STATEMENT – FROM ACTUAl TO PRO FORMA
thousand eUr
oPeratioNs
106
Sub-notes
actual
2005
from actual
to Pro forma
Pro forma
2005
actual
2004
from actual
to Pro forma
Pro forma
2004
Earnings Before Interest and Taxes (EBIT) 1, 2 30,931 4,479 35,410 3,606 7,927 11,533
Interest paid to external financial institutions –34 –34 –268 –268
Depreciation and amortization 2 19,884 585 20,469 18,114 1,170 19,284
Income from sale of shares and tangible
fixed assets and disposals
Write down/up of investments –6,660 –6,660
–8,818 –8,818 –5,815 –5,815
Change in tax position 3 917 917 –2,715 –2,219 –4,934
Share of income in associated companies –6,213 –6,213 –3,071 –3,071
Dividend from associated companies 3,087 3,087 2,689 2,689
funds provided by the year’s operations 33,094 5,064 38,158 12,540 6,878 19,418
Change in:
Inventories –662 –662 –1,161 –1,161
Current receivables –1,990 –1,990 –11,409 –11,409
Current liabilities 1,964 1,964 4,905 4,905
change in working capital –688 –688 –7,665 –7,665
cash flow from operating activities 32,406 5,064 37,470 4,875 6,878 11,753
iNvestmeNts
Shares and participations –2,629 –2,629 –1,071 –1,071
Interest received from external financial
institutions 98
Other intangible assets –2,504 –2,504
Construction in progress –13,806 –13,806 –14,630 –14,630
Machinery and equipment –15,723 –15,723 –19,234 –19,234
land, Buildings and other fixed installations –3.203 –3,203 –19,964 –19,964
total investments –37,767 –37,767 –54,061 –54,061
Sale of fixed assets and shares 85,042 85,042 17,641 17,641
cash flow from investing activities 47,275 47,275 –36,420 –36,420
fiNaNciNG
Net on external loans 373 373 –2,156 –2,156
long term interest bearing receivables –1,385 –1,385 1,477 1,477
long term interest bearing liabilities –1,592 –1,592 –281 –281
Current interest bearing receivables –8,985 –8,985 9,741 9,741
Current interest bearing liabilities –65,902 –65,902 39,718 39,718
Other changes financial items –7,610 –7,610 –5,422 –5,422
total external financing –85,101 –85,101 43,077 43,077
Increase share capital 3,107 3,107 2,800 2,800
Group contribution, Norway –4,173 –4,173
cash flow from financing activities –81,994 –81,994 41,704 41,704
effects of exchange rate changes on
cash and cash equivalents –72
98
838
838
–72 –91 –91
change in liquid funds in the balance sheet –2,385 5,064 2,679 10,068 6,878 16,946
Liquid funds at the beginning of the year 7 –9,482 6,878 –2,604 –19,622 –19,622
Liquid funds at year-end –11,867 11,942 75 –9,554 6,878 –2,676
liquid funds consist of:
Notes
Bank deposits, cash in hand etc. 25,816 11,942 37,758 26,541 6,878 33,419
liabilities to financial institutions –37,683 –37,683 –36,095 –36,095
Liquid funds –11,867 11,942 75 –9,554 6,878 –2,676

sUB-Notes to Note 27
The purpose of these sub-notes is to explain the pro forma adjustments made
between the actual financial statements of 2004 and 2005 in order to achieve
the pro forma financial statements. They are all related to the assumption that
the New Franchise Agreement (or assignment agreement) with Carlson took
place as of 1/1/2004.
1 Pro forma fees adjustments based on the assignment agreement
2 Pro forma depreciation adjustments on intangible asset.
3 Pro forma tax effect related to adjustments made on fees and on depreciation
of intangible asset (see sub-notes 1 & 2).
4 Intangible asset related to the assignment agreement adjusted as of the
opening balance January 1, 2004. This is a non cash issue.
5 Pro forma depreciation adjustments on intangible asset (see sub-note
2). The adjustments for 2005 consist of the depreciation amount of 2004
(1,170) and the depreciation amount of 2005 (585).
6 Cash collection related to fees adjustments.
The adjustments in the cash flow statement for 2005 consist of the reduction
of fees collected in 2004 (9,097) and the reduction of fees collected
in 2005 (5,064). Indeed, as soon as actual financial statements are the
starting points to achieve the pro forma financial statements for both years,
all pro forma amounts considered to be collected in 2004 have also to be
considered as collected in 2005.
Sub-notes
7 Payment of net income tax related to tax impacts attributable to the fee
reduction and to the depreciation on intangible asset.
The adjustments in the cash flow statement for 2005 consist also of the net
taxes paid related to pro forma adjustments made in 2004 (2,219). Indeed
and for the same reason mentioned in sub-note 6, as soon as actual financial
statements are the starting points to achieve the pro forma financial
statements for both years, all pro forma amounts considered to be paid in
2004 have also to be considered as paid in 2005.
In the cash flow statement for 2005 and for the same reasons described
in sub-notes 6 & 7, the liquid funds at the beginning of the year have been
adjusted with the pro forma adjustments of 2004 which represent the net
cash collection of the reduction of fees adjusted in 2004 (9,097) minus the
net taxes related to pro forma adjustments made in 2004 (2,219).
8 Same as sub-note 4. It is a non cash issue related to the assignment
agreement.
9 Net impact on retained earnings related to pro-forma adjustments in the
Income statement (see sub-notes 1, 2, 3). Year 2005 contains also the net
impact of the adjustments made in the Income statement in 2004.
10 Adjustment on tax liability.
107

108
PareNt comPaNy
Rezidor SAS Hospitality Holdings AB
Central Business Registration No.: 556674-0972
Registered in: Stockholm
Board of directors
Gunnar Reitan
Jørgen Lindegaard
Jay S. Witzel
Leo M. Renaghan
Benny Zakrisson
Trudy Rautio
Kurt Ritter
aUditor
Deloitte AB
Peter Gustafsson
Authorized Public Accountant