Rezidor: Economic slowdown in Europe impacts 3rd quarter
“The European hotel market in the third quarter was negatively impacted by the
economic slowdown and the financial turmoil. Like-for-like RevPAR development
for Rezidor was almost flat in the quarter with a decrease in occupancy offset
by an increase in average room rate. This compares to the strong first half year
RevPAR growth of nearly 8%,” says Rezidor's President & CEO, Kurt Ritter.
The uncertainties surrounding the global economy make it difficult to predict
the outlook. To mitigate the effects of the slowdown, a cost savings plan
comprising mainly a reduction in fixed costs and improved purchasing agreements
is being implemented throughout Rezidor. The plan is expected to result in
annual cost savings of MEUR 20, with full effect as of the second half of 2009,
Ritter continues.
“Although some new openings are likely to witness delays as a result of the
credit crunch, 2008 will be another record year for Rezidor in terms of new
signings. The long term strategy remains to grow our portfolio and focus on fee
based high margin management and franchise contracts with limited or no down
side. We have a contracted pipeline of close to 23,000 rooms out of which circa
85% are fee based and over 60% are in emerging markets,” concludes Kurt Ritter.
The financial report is attached as pdf. For further information please contact:
The Rezidor Hotel Group
Per Blixt, Senior Vice President Investor Relations & Corporate Communications
Per.Blixt@Rezidor.com, +32 2 702 9224
About the Rezidor Hotel Group:
The Rezidor Hotel Group is one of the fastest growing hotel companies in the
world. The group features a portfolio
of 352 hotels in operation and under development, with approximately 75,000
rooms in 53 countries.
Rezidor operates the brands Radisson SAS Hotels & Resorts, Regent Hotels &
Resorts, Park Inn and Country
Inns & Suites in Europe, the Middle East and Africa, along with the goldpoints
plusSM loyalty programme for frequent hotel guests. Rezidor has signed a
worldwide license agreement with the Italian fashion house Missoni, in order to
develop and operate a lifestyle hotel brand of the same name: Hotel Missoni.
In November 2006, Rezidor was listed on the Stockholm Stock Exchange. With 42%,
Carlson Companies is the main shareholder.
The Corporate Office of the Rezidor Hotel Group is based in Brussels, Belgium.
For more information on Rezidor, visit www.rezidor.com.
This press release comprises information which Rezidor Hotel Group AB (publ) is
required to disclose under the Securities Markets Act and/or the Financial
Instruments Trading Act. It was released for publication at 08h30 CET, on 3rd
November 2008.
