In line with asset-light strategy, Rezidor converts two leases in Sweden to franchise agreements
The Rezidor Hotel Group today announced the conversion of two lease agreements, the Park Inn by Radisson Malm? and the Park Inn by Radisson Hammarby Sj?stad, in Sweden to franchise agreements.
Combined, the two hotels comprise more than 400 rooms and will remain under the Park Inn by Radisson brand. Ligula Hospitality Group AB will purchase the shares of the company which holds the lease agreements, Rezidor Hotel AB which will operate the hotels under franchise agreements beginning in Q1-2013. The shares will be purchased for a symbolic 1 EUR, while the net assets of the company are 0.9 MEUR. The 2012 forecasted EBITDA losses for the hotels are a combined MEUR 0.8.
Ligula Hospitality Group has over 375 employees and MEUR 45 in annual revenue. The group holds several local brands and among them is ProfilHotels with 10 hotels in Sweden and Denmark.
[quote]?Converting these hotels from leases to franchise agreements is in line with our asset-light strategy and our increasing focus on fee-based business?, says Wolfgang M. Neumann, President & CEO at Rezidor. ?In addition, we are delighted to partner with ProfilHotels, which is a highly successful and experienced operator and capable of managing these hotels at the highest level.?[/quote]
The information here is that which Rezidor Hotel Group AB has willingly chosen to make public or that which it is obliged to make public according to the Swedish Securities Market Act and/or the Financial Instruments Trading Act.
[box type=”tick”]About the Rezidor Hotel Group
The Rezidor Hotel Group is one of the fastest growing hotel companies worldwide and a member of the Carlson Rezidor Hotel Group, one of the world?s ten largest hotel groups. Rezidor features a portfolio of more than 430 hotels in operation and under development with 95,000 rooms in 70 countries. Rezidor operates the brands Radisson Blu and Park Inn by Radisson in Europe, the Middle East and Africa, along with the Club CarlsonSM loyalty programme for frequent hotel guests. Under a worldwide licence agreement with the iconic Italian fashion house Missoni, Rezidor also operates and develops the luxury lifestyle brand Hotel Missoni. In September 2012, Rezidor signed a strategic alliance agreement with Regent Hotels & Resorts to develop and operate Regent properties in Europe, the Middle East & Africa. Since November 2006, Rezidor is listed on the Stockholm Stock Exchange (REZT). Carlson, a privately held, global hospitality and travel company, based in Minneapolis (USA), is the majority shareholder.[/box]