IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB

 
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
COR POR ATE   PRE SE NTATIO N   2 016

MOVING FORWARD
IN PERPETUAL MOTION
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
L E T ' S          G R O W                                                                                                       A B O U T     R E Z I D O R

                                                                                     ABOUT THE
                                                                                     REZIDOR HOTEL GROUP
                                                                                     The Rezidor Hotel Group is one of the most dynamic hotel
                                                                                                                                                         483 105,000+
                                                                                                                                                            H O T E L S                       R O O M S
                                                                                     companies in the world and a member of the Carlson
                                                                                     Rezidor Hotel Group. The group features a portfolio of more
                                                                                     than 483  hotels in operation or under development with
                                                                                     105,000  rooms in 80+ countries.

                                                                                                                                                                                                               0 1
                                                                                     Rezidor operates the core brands Radisson Blu® and Park Inn®
CONTENT

                                                                                                                                                                                                               AT
                                                                                     by Radisson in Europe, the Middle East and Africa (EMEA),
                                                                                     along with the Club CarlsonSM loyalty program for frequent

                                                                                                                                                                                                               A
                                                                                                                                                                                                5
                                                                                     hotel guests. In early 2014 and together with Carlson, Rezidor

                                                                                                                                                                                                               G LA N C E
                                                                                                                                                                                                      UNIQUE
AT   A    G L A N C E                   0 1                                          launched the new brands Radisson RED (lifestyle select) and
M E S S AG E          F R O M   T H E    P R E S I D E N T     &    C E O      0 2   Quorvus Collection (luxury). In 2016, Rezidor acquired 49%               8 0 +
2 0 1 6   K E Y       M I L E S TO N E S                 0 8                         of prizeotel (economy).                                             C O U N T R I E S
                                                                                                                                                                                              B R A N D S
O U R     R E S U LT S                   1 0
O U R     B R A N D S                   1 4                                          Rezidor has an industry-leading Responsible Business Program
T R AV E L     &      TO U R I S M      I N D U S T RY                   3 6
                                                                                     and is named one the World's Most Ethical Companies by the
O U R     G R OW T H        S T R AT E G Y                   4 4
                                                                                     US think-tank Ethisphere since 2010.
R E S P O N S I B L E       B U S I N E S S                  5 0
                                                                                     In November 2006, Rezidor was listed on the Nasdaq
O U R     P U R P O S E                   5 8
                                                                                     Stockholm, Sweden. HNA Tourism Group Co., Ltd., a division                                          R E V E N U E
AWA R D S         &    AC H I E V E M E N T S                      6 0
                                                                                     of HNA Group Co., Ltd.—a Fortune Global 500 company with

                                                                                                                                                      43,700+                           €961.2
C O N TAC T                      6 4                                                 operations across aviation, tourism, hospitality, finance and
                                                                                     online services among other sectors—became the majority
                                                                                     shareholder in December 2016.
                                                                                                                                                       T E A M   M E M B E R S               M I L L I O N
                                                                                     The Rezidor Hotel Group and its brands employ 43,700 people
                                                                                     in EMEA and is headquartered in Brussels, Belgium.
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
M E S S AG E        F R O M     T H E    P R E S I D E N T   &   C E O

EVERY MOMENT
MATTERS

                                                                                                                                                                                                                0 2 / 0 3
Every Moment Matters. These three words are,                  worldwide. Also Rezidor continued to grow and        W O L F G A N G     M . N E U M A N N ,     V I E W   C E O ' S   V I D E O   M E S S AG E
quite simply, the key to Rezidor’s success. Every             made further progress in creating a sustainable      P R E S I D E N T   & C E O

                                                                                                                                                                                                                M E S SAG E
moment, every interaction, every point of contact             foundation for improved profitability. We launched
with our guests, owners, business partners and                a €10m cost containment plan purely focused
team members counts and makes a difference.                   on overhead costs while protecting the guest

                                                                                                                                                             REZIDOR
These moments give us a unique opportunity to                 experience in our hotels, and completed 15 more
differentiate us, to create memorable experiences             asset management transactions to optimize
– and to ultimately advance on our journey from               our portfolio, either through exiting loss-making

                                                                                                                                                                                                                FR OM
                                                                                                                                                             HAS ALWAYS
being ‘simply good’ to becoming ‘truly great’.                properties or re-negotiating lease agreements.
                                                              Asset management is a key contributor to
                                                              our performance: over the past five years,
SUSTAINABLE FOUNDATION
                                                                                                                                                             EMBRACED

                                                                                                                                                                                                                TH E
                                                              our initiatives have yielded ca €17m EBITDA
FOR IMPROVED PROFITABILITY                                    contribution and ca 1.8 percent uplift in EBITDA
                                                              margin.

                                                                                                                                                             CHANGE AS AN

                                                                                                                                                                                                                P R ES ID EN T
Such individual and personal moments count
even more in the challenging times we live and do
                                                              REACHING 100,000 ROOMS
                                                                                                                                                             OPPORTUNITY,
business in. The external environment was fragile
during the past year: terrorist threats and attacks           IN 80 COUNTRIES
continued to affect many destinations, trading

                                                                                                                                                             RATHER THAN AN
conditions in oil-producing countries remained                Our growing network in more than 80 countries

                                                                                                                                                                                                                &
difficult, the Syrian refuge crisis and Britain’s Brexit      across Europe, the Middle East and Africa passed

                                                                                                                                                                                                                C E O
vote put pressure on the European Union, and the              the milestone of 80,000 rooms in operation, and

                                                                                                                                                             OBSTACLE
change of Presidential leadership in the US caused            our pipeline remained strong with more than
concern and uncertainty in large parts of the world.          20,000 rooms under development. We continue
                                                              to lead with our bold approach concentrated on
But despite the tough global market conditions,               emerging markets. We are recognized for offering
international travel & tourism maintained its strong          successful global brands, personalized service
position as one of the fastest growing sectors                to owners, experienced technical and openings
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
0 4 / 0 5
intro-highlight?                                                                                                                                                                                                                                         EMBRACING CHANGE
                   teams, an attractive commercial strategy as well      April 2016 saw another significant development:                       HNA Tourism, Rezidor’s new                          I strongly support Responsible Business alignment
                   as operational excellence – and this is paying off.   Rezidor expanded its brand portfolio and entered
                                                                                                                                               majority shareholder, has the                       across all major international hotel companies.       WITH A Z-SPIRIT

                                                                                                                                                                                                                                                                                                                M E S SAG E
                   In 2016, Rezidor strengthened its leading position    the economy segment by acquiring a 49% stake in
                   in Africa: in this core growth region, we signed      prizeotel, a dynamic, entrepreneurial and creative                    ambition to become a global                         During the past year, Rezidor was equally             We are living in a challenging yet exciting era of
                   in average a hotel every 37 days and opened a         start-up based in Germany and designed by                             leader within our industry, and                     acclaimed for numerous visionary Responsible          disruption and global change. The Rezidor team
                   hotel every 60 days. Radisson Blu has the largest     Karim Rashid. For the initial roll-out of prizeotel,                                                                      Business initiatives. Like our Park Inn by Radisson   has always embraced change as an opportunity,
                   organic room pipeline on the continent, and also      we put priority on Germany, Switzerland, Austria                      we look forward to growing                          “Adding Color to Lives” campaign - an innovative      rather than an obstacle. All of our successes are
                   Quorvus Collection, Radisson RED and Park Inn         and the BeNeLux countries – and already added                         our business together with                          art project designed to help youth at-risk– which     due to our people – our 43,700+ team members

                                                                                                                                                                                                                                                                                                                FR OM
                   by Radisson continue to grow in Africa where
                   increased demand is driven by natural resources,
                                                                         three properties in Germany and Switzerland to
                                                                         prizeotel’s existing portfolio of three hotels (*). The
                                                                                                                                               a strong owner. At the same                         won the prestigious United Nations World Tourism
                                                                                                                                                                                                   Organization Innovation Award.
                                                                                                                                                                                                                                                         are living Rezidor’s fighting Z-spirit and are true
                                                                                                                                                                                                                                                         hosts. We are a relationship company, and we
                   infrastructure developments and a shortage of         economy segment is constantly expanding, and                          time, we extend our sincere                                                                               have established a distinct reputation and track

                                                                                                                                                                                                                                                                                                                TH E
                   international branded supply.                         we see promising potential for accelerated growth                     thanks to Carlson for a fruitful                                                                          record for that. Most importantly, our guests know
                                                                         in other key markets.                                                                                                     NEW MAJORITY OWNERSHIP                                and appreciate our hospitality mindset, wherever
                                                                                                                                               partnership that lasted more                                                                              they travel, our hoteliers are keen to delight them.

                                                                                                                                                                                                                                                                                                                P R ES ID EN T
                   PIONEERING BOLD RADISSON                                                                                                    than 25 years.                                      2016 marked a change in majority ownership            Each of our employees is empowered to offer
                   RED AND DYNAMIC PRIZEOTEL                             COMMITTED TO SAFETY                                                                                                       in Rezidor: In December, China-based HNA              personalized, and innovative service to make each
                                                                         & SECURITY                                                                                                                Tourism Group acquired Carlson Hotels, making         stay a special and memorable one.
                   In 2016, we celebrated the opening of the                                                                                                                                       HNA Tourism Group Rezidor’s new majority
                   world’s very first Radisson RED in our home town      Rezidor is recognized within the industry and                         properties across Europe, the Middle East and       shareholder (51.3%). HNA Tourism Group Co., Ltd.      Welcome to our world!
                   Brussels in Belgium. RED is our new lifestyle         beyond for our leading Safety & Security program                      Africa already received the Safehotels label.       is a Fortune Global 500 company with operations

                                                                                                                                                                                                                                                                                                                &
                   select offer – curated for the ageless millennial     – and yet we are always striving to even better                                                                           across aviation, tourism, hospitality, finance and    Sincerely,

                                                                                                                                                                                                                                                                                                                C E O
                   mindset, and inspired by fashion, music and art.      respond to the changing external environment.                         Safety & Security is a core element of our award-   online services among other sectors. HNA has
                   We look forward to opening the next Radisson          We increased our focus on Safety & Security                           winning Responsible Business program that aims      the ambition to become a global leader within
                   RED properties in Glasgow/UK and Cape Town/           even further and complemented our program by                          to make a real difference. Also in 2016, Rezidor    our industry, and we look forward to growing
                   South Africa in 2017, and have five more projects     an agreement with ‘Safehotels’, an independent                        was named one of the World’s Most Ethical           our business together with a strong owner. At
                   under development in EMEA and, together with          partner certifying the safety standards at our                        Companies - an honor we have held since 2010.       the same time, we extend our sincere thanks to
                   our strategic partner Carlson, 17 hotels under        hotels. We are proud that more than 160 Rezidor                       We work to be a role model, and, as Chairman of     Carlson for a fruitful partnership that lasted more   Wolfgang M. Neumann
                   development worldwide.                                                                                                      the International Tourism Partnership (ITP),        than 25 years.                                        President & CEO

                                                                         * prizeotel numbers not included in the overall Rezidor room count.
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
M E S S AG E       F R O M     T H E    P R E S I D E N T   &   C E O

OUR COMMON                                                                                                                                                         OUR GUIDING LIGHT
NORTH

                                                                                                                                                                                       0 6 / 0 7
Every navigator knows the importance of a                    a unique and memorable experience that wows             V I E W   O U R   P U R P O S E   V I D E O
good compass, a tool for setting and following               them, that compels them to share the experience

                                                                                                                                                                                       M E S SAG E
direction, the indicator for a good roadmap. If you          with friends and family, giving us a strong third-
do not know where to go and how to get there,                party endorsement and strengthening loyalty.
how can you reach your destination, how can

                                                                                                                     WE ARE
you be successful? This is where Our Common                  We are true hosts. We exist to create memorable
North comes in. For Rezidor, Our Common North                moments. We deliver by living the brand promise.
highlights our joint direction And it outlines what is       What connects us? Our values, being host, living

                                                                                                                                                                                       FR OM
                                                                                                                     TRUE HOSTS.
important to us and why – and what sets us apart             trust and the fighting z-spirit. Each and every one
from anyone else.                                            of our team members is empowered to make a
                                                             difference, to live our values, to drive our business

                                                                                                                     WE EXIST

                                                                                                                                                                                       TH E
We share a common vision…a common purpose…a                  and to delight our guests. At Rezidor, every
common dream. All in alignment, we act in concert            moment matters on our journey.
as a well-oiled machine, developing talent, driving

                                                                                                                     TO CREATE

                                                                                                                                                                                       P R ES ID EN T
our business, delighting our guests and delivering
results. That’s our 4D strategy, fueled by our Yes

                                                                                                                     MEMORABLE
I Can! service ethos, inspired by Our Common
North, and ensuring that every moment matters –
for our guests, our partners and our colleagues.

                                                                                                                     MOMENTS.

                                                                                                                                                                                       &
It is easy to be good. It takes more work, focus
and dedication to be great. To go from good to

                                                                                                                                                                                       C E O
great, we simply focus on the essential of our
business: our guests. It is in our DNA, It is in our
culture. In today’s competitive hotel arena, it is
not enough to focus on service excellence. We
have to go beyond that and put our guests center
stage in everything we do. We want to offer them
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
E U R O P E ' S               1 0   L A R G E S T                U P S C A L E    B R A N D S
                                         105,000+                                                A solid pipeline of                                                                          RANK      BRAND                              GROUP                              HOTELS   ROOMS
                                       rooms in operation and
                                        under development in                                     20,000+                                                                                           1

                                                                                                                                                                                                   2
                                                                                                                                                                                                        Radisson Blu

                                                                                                                                                                                                        Hilton
                                                                                                                                                                                                                                           The Rezidor Hotel Group

                                                                                                                                                                                                                                           Hilton
                                                                                                                                                                                                                                                                               186

                                                                                                                                                                                                                                                                               126
                                                                                                                                                                                                                                                                                       44,717

                                                                                                                                                                                                                                                                                       35,719
                                        80+ countries across                                           rooms
  C O M PA N Y   H I G H L I G H T S        3 continents                                                                                                                                           3    Marriott                           Marriott                            100     25,261

                                                                                                                                                                                                   4    Crowne Plaza                       IHG                                  79     17,640

2016                                                                         8th                                                                                                                   5    Melia                              Melia Hotels International           60     16,048

KEY
                                                                                                                                                                                                   6    Clarion                            Choice                              103     15,554
                                                                       consecutive year
                                                                                                                                                                                                   7    Sheraton                           Marriott                             53     15,247
                                                                   world’s most ethical hotel
MILESTONES                                                                 company                                                                                                                 8

                                                                                                                                                                                                   9
                                                                                                                                                                                                        Thon

                                                                                                                                                                                                        Maritim
                                                                                                                                                                                                                                           Thon Hotels

                                                                                                                                                                                                                                           Maritim
                                                                                                                                                                                                                                                                                76

                                                                                                                                                                                                                                                                                36
                                                                                                                                                                                                                                                                                       10,969

                                                                                                                                                                                                                                                                                       10,189

                                                                                                                                                                                                                                                                                                0 8 / 0 9
                                                                                                                                                                                                   10   Eurostars Hotels                   Hotusa                               78     8,572

                                       Opening the world's first
                                                                                                     49%

                                                                                                                                                                                                                                                                                                C O M PA NY
                                        Radisson RED hotel
                                        in Brussels, Belgium                                 acquisition of prizeotel,
                                                                                         to enter the economy segment
                                                                                                                           E U R O P E ' S                        1 0        L A R G E S T                     M I D S C A L E        B R A N D S

                                                                                                                                                                                                                                                                                                H I G H L IG H TS
                                                                                                                             RANK        BRAND                                               GROUP                                HOTELS         ROOMS

                                                                                                                                 1       Best Western                                        Best Western                          1,104            79,936

                                                                                                                                2        Mercure                                             Accor                                 544              62,682

                                                                                                                                3        Holiday Inn Hotels & Resorts                        IHG                                   279              45,587

                                                                                                                                4        Novotel                                             Accor                                 251               43,171

                                                                                                                                5        NH Hotels                                           NH Hotel Group                        286              43,000

                                                                                                                                6        Scandic                                             Scandic                               216              39,078

                                                                                                                                7        Park Inn by Radisson                                The Rezidor Hotel Group                95              18,827
                                         Safehotels Alliance                                   Asset management                 8        Ramada Hotel                                        Wyndham Hotels                         124             17,894
                                        accreditation given to                            initiatives deliver savings of
                                                                                                                                9        Quality Inn/Quality Hotel                           Choice                                 115             15,545

                                       160+ hotels                                         ca.   €2 million                     10       Sol                                                 Melia Hotels International             49              14,877
                                            across EMEA

                                                                                                                           SOURCE: Global Hotel Ranking by MKG Hospitality ON January 2017
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
O U R    R E S U LT S

LEVERAGING
OPPORTUNITIES AHEAD

                                                                                                                                                                                                 1 0 / 1 1
INTERNATIONAL TOURISM                                 ASSET MANAGEMENT AND                                      V I E W   C F O ' S   V I D E O   M E S S AG E   K N U T K L E I V E N ,
CONTINUES TO GROW DESPITE                             SUSTAINABLE TAX STRATEGY
                                                                                                                                                                 D E P U T Y P R E S I D E N T
                                                                                                                                                                 & C H I E F F I N A N C I A L

                                                                                                                                                                                                 OU R
CHALLENGES                                            DRIVE PROFITABILITY                                                                                        O F F I C E R

                                                                                                                                                                                                 R E S U LT S
                                                                                                                REZIDOR
2016 was an interesting year in many ways.            Rezidor continued to gain market share for the fifth
Demand for international tourism remained             consecutive year. Our like-for-like revenue increased
robust in 2016 despite challenges. International      by 3.8% with many markets trading at new peak

                                                                                                                GAINED
tourist arrivals grew by 3.9% to reach a total        levels. We continued to push forward on our asset
of 1,235  million, according to UNWTO. Some           management strategy that involves exiting from
46  million more tourists travelled internationally   unprofitable contracts and re-negotiating of terms
compared to 2015, which confirms great resilience
and strength of the global tourism industry.
                                                      including renovations across EMEA. In 2016, we have
                                                      successfully completed 15 such transactions. Over
                                                      the past five years, our asset management initiatives
                                                                                                                MARKET SHARE
The great majority of leading source markets
in the world reported increases in international
                                                      targeting a continuous portfolio optimization
                                                      have yielded ca  €17M EBITDA contribution and             FOR THE 5th
                                                                                                                CONSECUTIVE
tourism expenditure during the first three to         ca  1.8  percent uplift in EBITDA margin.
nine months of 2016. Among the top five source
markets, China, the world’s top source market,        In addition to the asset management progress made

                                                                                                                YEAR
continues to drive demand, reporting double-          and other initiatives to improve profitability, we have
digit growth in spending, which benefited many        also adopted our transfer pricing model to reflect
destinations. Germany reported a 5% increase in       recent tax law changes initiated by the OECD and
expenditure, the United Kingdom a 10% increase,       the EU and as a result we were able to capitalize
and France 3% growth.                                 previously unrecognized tax losses carried forward
                                                      in several jurisdictions. The total amount recognized
                                                      related to previous years tax losses amounts to
                                                      €29.3M, however partly offset by the loss of deferred
                                                      tax assets in Germany of €7M. Going forward this
                                                      should lead to a more normalized tax rate for the
                                                      group.
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
INTERNATIONAL TOURISM ARRIVALS, WORLD
                                                                                                                                                                                                                                     (% change)
                                                                                                                                   10.4

                                                                                                  7.8
                                                                 6.4                                                                                       6.6                       6.6
                                                                                                                                           5.9 5.7

                                                                                                                                                                                                                                                             Source: World Tourism Organization (UNWTO) ©
                                                                          5.0                                                                                                                4.6 4.7 4.7
                                                                                          3.9                                                                                                                          4.3 4.6 3.9
                                                                                  2.7                             3.0

                                                                                                                                                                                                                                                                                                                                                                                                 1 2 / 1 3
                                                                                                                                                                   1.9
                                                                                                          0.2

UNEVEN MARKET                                                                                                             -0,6
PERFORMANCE ACROSS EMEA

                                                                                                                                                                                                                                                                                                                                                                                                 OU R
Increased volatility related to terrorist attacks,                                                                                                                          -3.9
lower oil prices, foreign exchange rates, Brexit,

                                                                                                                                                                                                                                                                                                                                                                                                 R E S U LT S
                                                                  96/95

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                                                                                                                                           05/04

                                                                                                                                                   06/05

                                                                                                                                                           07/06

                                                                                                                                                                    08/07

                                                                                                                                                                             09/08

                                                                                                                                                                                     10/09

                                                                                                                                                                                             11/10

                                                                                                                                                                                                     12*/11

                                                                                                                                                                                                              13*/12

                                                                                                                                                                                                                       14*/13

                                                                                                                                                                                                                                15*/14

                                                                                                                                                                                                                                         16*/15
                                                                                                                                                                                                                                                  Forecast
                                                                                                                                                                                                                                                      2017
US elections and other global events continued
to negatively affected some key countries.

In Europe, Rezidor is seeing strong market                                                                                                                                                                                                                                                                  OPPORTUNITIES AHEAD
performance compared to the sector and market         and Denmark’s rate growth was fueled by RevPAR                                                               while the Middle East and Africa markets remained
performance. Three of four regions reported like-     increase. The UK & Ireland’s continuing positive                                                             weak. In Russia, strong performance was based on                                                                                         I think that global travel, and especially outbound   What moves me or
for-like RevPAR growth. Eastern Europe reported       development was based mainly on rate and                                                                     domestic and Asian business.                                                                                                             travel from China, has the biggest potential upside
the strongest RevPAR growth (12.7%).                  Germany’s was linked to a strong September.                                                                                                                                                                                                           for the industry in Europe, the Middle East and       motivates me if you like, is
In the Nordics, all four key countries had positive   Belgium and France showed weak performance in                                                                Rezidor's ongoing priority is to open the pipeline.                                                                                      Africa over the next three to five years. Capturing   when I see opportunities to
developments: Denmark 10.6%, Finland 7.8%,
Norway 1.0% and Sweden 7.6%. In Western
                                                      the aftermath of the terrorist attacks. We also saw
                                                      the impact of less international congress business
                                                                                                                                                                   We have a fairly large pipeline relative to our
                                                                                                                                                                   size, probably one of the biggest pipelines in
                                                                                                                                                                                                                                                                                                            our share of that market is very important. What
                                                                                                                                                                                                                                                                                                            HNA will impact and/or mean to us is very early
                                                                                                                                                                                                                                                                                                                                                                  do things better than what
Europe, RevPAR was marginally below last year         in the Netherlands.                                                                                          the industry, and that is a critical factor for us.                                                                                      to say too much about, but of course we are very      we have done in the past.
(-0.2%), as a result of a decline in occupancy                                                                                                                     Continuing to grow market share, or RGI as we call                                                                                       hopeful that this would bring a lot of Chinese        That’s the most important
(-0.4%) with minimal room rate growth (0.2%).                                                                                                                      it, is also incredibly important.                                                                                                        business into our hotels going forward. Chinese
Trading in the Middle East and Africa continued       POWER OF EMERGING                                                                                                                                                                                                                                     room nights in Rezidor today are only 4% of the       thing. Celebrating our
to be negatively impacted by political turmoil        MARKETS AND A BALANCED                                                                                       The most important thing for shareholders is                                                                                             total number of room nights we sell. This should      successes and looking
and the low oil price, with RevPAR 4.7% below
last year.                                            PIPELINE
                                                                                                                                                                   that we deliver on our promises which is a profit
                                                                                                                                                                   margin of 12% over a business cycle, a target that
                                                                                                                                                                                                                                                                                                            easily double or triple over the next few years.
                                                                                                                                                                                                                                                                                                            That can have a big impact on the performance
                                                                                                                                                                                                                                                                                                                                                                  for opportunities to do
                                                                                                                                                                   we should have a debt-free balance sheet, and                                                                                            of Rezidor going forward.                             things better.
The Nordics continued with strong performance,        2016 brought good development in Eastern Europe                                                              that we will open our pipeline on time. If we are
but Rest of Western Europe was less profitable,       and the Middle East and Africa while overall results                                                         able to do that, then I am pretty sure that we will
linked to mixed results. Norway experienced           were negatively impacted by the Rest of Western                                                              create shareholder value.
strong occupancy growth via leisure segments,         Europe. Eastern Europe continued to improve
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
O U R   B R A N D S

GLOBAL BRANDS
FOR A WIDER
GLOBAL REACH

                                                            1 4 / 1 5
All Carlson Rezidor hotels strive to consistently deliver
the experience their brands are known for. A brand is

                                                            OU R
a promise - a pledge our global team works tirelessly
to keep. And our brand portfolio grew in 2016 with

                                                            BR A ND S
the addition of the exciting prizeotel economy brand.
Created by New York design guru, Karim Rashid,
prizeotel is now expanding in Europe.
Carlson Rezidor’s global portfolio has more than
1,400  hotels in operation and under development
with more than 220,000 rooms and a footprint
spanning 115  countries and territories. Carlson Rezidor
Hotel Group and its brands employ 90,000  people
worldwide.
Rezidor operates and develops the hotel brands
Quorvus Collection, Radisson Blu, Radisson RED and
Park Inn by Radisson in Europe, the Middle East and
Africa under a Master Franchise Agreement
with Carlson.
IN PERPETUAL MOTION MOVING FORWARD - Radisson Hospitality AB
Q24
                                                                                               The result of extensive
                                                                                               competitor analysis and trend
                                                                                               research, the launch of Q24                                       4

                                                                                                                                                                                             1 6 / 1 7
                                                                                               guarantees that each hotel                                  H OT E L S
                                                                                               in our collection upholds
A collection of the world’s finest       Leveraging the unique quality of our people,
Modern Luxury hotels, with
                                         properties and perspective, the development of        the same essential suite

                                                                                                                                                      800+

                                                                                                                                                                                             QU ORV U S
                                         a content-rich digital presence remains a major
Quorvus Collection we have set           focus for the brand. Most notably, all-new web        of services and amenities.
about to change the elite global
                                         and app platforms provide an elegant showcase
                                         for the portfolio – while a forthcoming social
                                                                                               Developed to support the
traveler’s landscape. Committed          media expansion and VR movie will capture our         lifestyle our guests aspire                                  R O O M S
                                         immersive, local experiences in exciting, new
to celebrating and enhancing the                                                               towards, Q24 looks beyond

                                                                                                                                                                                             C O LLE C TI O N
                                         ways. Quorvus Collection also continues to keep

                                                                                                                                                                 4
individual luster of each member         pace with the aspirational lifestyles of the Modern
                                                                                               just the Luxury benchmark
                                         Luxury traveler. And as Q24 ensures our hotels
property, so Quorvus Collection          stay firmly ahead of the industry benchmark (in       – ensuring that our hotels
brings the Eidos of its locations –      services and amenities), our new responsible
the “distinctive character of culture”
                                         business focus and brand hallmarks offer a truly      meet with emerging baseline
                                         uncommon experience of luxury.                                                                               C O U N T R I E S
– vividly to life. As our portfolio                                                            standards, whilst positioning
grows so too does our influence,                                                               each as early-adopters of
and the brand activities currently in                                                          the most differentiating guest
motion speak of a bold ambition.                                                               services.
                                                                                                   V I E W M O R E H I G H L I G H T S
                                                                                                   Q U O R V U S C O L L E C T I O N /
                                                                                                   H I G H L I G H T S 2 0 1 6

                                                                                                   V I E W Q U O R V U S   C O L L E C T I O N
                                                                                                   V I D E O

                                                                                                                                                 *Number of hotels and rooms operated and
                                                                                                                                                   developed by The Rezidor Hotel Group
                                                                                                                                                   across EMEA
311

                                                                                                                                                                                                 1 8 / 1 9
        H OT E L S
                                            Iconic, stylish and sophisticated,    Free High-Speed Internet for all. And exciting,       Best luxury rooftop view
                                                                                  tailor-made solutions – including Super Breakfast,

72,300+
                                            brilliant Radisson Blu continues                                                            The World Luxury Hotel Awards

                                                                                                                                                                                                 R A D I S S O N
                                                                                  Experience Meetings, One Touch App and our
                                            to make fantastic progress: our       new BluPrint interior design scheme, creating the
                                                                                                                                        celebrates the finest hotels around
                                                                                  design foundation for all Radisson Blu’s stunning
                                            ongoing, dynamic growth initiatives   interior spaces, with the flexibility to suit local   the world for their savoir-faire,
         R O O M S                          have taken Europe’s leading upper-    needs. Radisson Blu’s famous Yes I Can! Service
                                            upscale brand to a truly global       culture and 100% Satisfaction Guarantee help          unique location and exceptional

                                                                                                                                                                                                 BLU
                                            level. Individual and contemporary,
                                                                                  ensure a priceless guest experience as our brand
                                                                                  evolution continues to drive revenue. Radisson
                                                                                                                                        service. Radisson Blu 1835 Hotel

          80                                Radisson Blu is truly reflective
                                            of modern guests’ needs. With
                                                                                  Blu is the ultimate upper upscale experience, with
                                                                                  an unrivaled reputation for green initiatives; its
                                                                                  effective water-savings program Blu Planet and
                                                                                  powerfully creative building solutions. Blu with a
                                                                                                                                        & Thalasso, Cannes won the Best
                                                                                                                                        Luxury Rooftop view in France
   C O U N T R I E S                        400+ hotels in operation and under    touch of wow!                                         in 2016.
                                            development around the world.
                                                                                                                                            V I E W M O R E H I G H L I G H T S
                                                                                                                                            R A D I S S O N B LU / H I G H L I G H T S 2 0 1 6

                                                                                                                                            V I E W   R A D I S S O N   B LU   V I D E O

*Number of hotels and rooms operated and
  developed by The Rezidor Hotel Group
  across EMEA
7

                                                                                                                                                                                                     2 0 / 2 1
                                                                                               RED Pedal power
                                                                                               At the Radisson RED Brussels,                                       H OT E L S
Radisson RED is a new hotel             Radisson RED is creating new rules. And it starts      you can get fit and improve the
                                        at hello. The lobby is artistic, energetic, exciting
philosophy that connects with an                                                               world. When you work out on our
                                                                                                                                                          1,300+

                                                                                                                                                                                                     R A D I S S O N
                                        and welcoming. Guest Studios are designed by
ageless millennial mindset through      inspiration, not a corporate template. Everything
                                                                                               innovative fitness equipment, you
                                        we do is engineered to be as fresh thinking and
art, music and fashion. Offering the    smart as our guests. From the style-conscious          generate power, which can charge
freedom, flexibility and fun that the   and locally inspired OUIBar + KTCHN to multi-                                                                               R O O M S
modern traveler demands, RED is         functional zones to work, rest and play. RED has       your smartphone – or the hotel! You

                                                                                                                                                                                                     R ED
                                        sociable spaces powered by free WiFi, relevant
                                                                                               can track your personal contribution,

                                                                                                                                                                         7
about curating guest experiences        music and unique art.
that are engaging and authentic.                                                               and see the total impact. You’ll be
                                        RED took off in 2016 with the first hotels in
Forget everything you thought you       Minneapolis and Brussels, both centrally located,      able to tell your friends how many
                                        steps away from the hustle and bustle as well as
knew about hotels.                      trendy digs for night hawks. Watch for Glasgow         hours of lighting your workout                                 C O U N T R I E S
                                        and Cape Town openings ahead and plans for
                                        60 REDs in 60 cities by 2020.
                                                                                               provided. It’s the best motivation
                                                                                               to get fit!
                                                                                                   V I E W M O R E H I G H L I G H T S
                                                                                                   R A D I S S O N R E D / H I G H L I G H T S 2 0 1 6

                                                                                                   V I E W   R A D I S S O N   R E D   V I D E O

                                                                                                                                                         *Number of hotels and rooms operated and
                                                                                                                                                           developed by The Rezidor Hotel Group
                                                                                                                                                           across EMEA
157

                                                                                                                         2 2 / 2 3
                                                                           Bocca Buona
                                                         H OT E L S        Park Inn by Radisson has created
Park Inn by Radisson is vibrant,                                           and launched Bocca Buona

                                                      30,400+
positive, fresh and friendly with                                          restaurant concept. Unashamedly

                                                                                                                         PA R K
a choice of great destinations.                                            Italian and simplistic in approach, it
The “Adding Color to Life” service
                                                                           celebrates the Italian way of living

                                                                                                                         I NN
philosophy makes the modern                               R O O M S
traveler feel right at home,                                               and brings a warm, crowdy and noisy

                                                                                                                         BY
confident, safe and at ease, with a                                        ambience of the Italian street and a
                                                           41

                                                                                                                         R A D I S S ON
Happiness Guarantee.                                                       lively bustle into the restaurant. Latest
                                                                           openings include Nice and Riga.
Park Inn by Radisson offers flexible meeting
spaces and packages, along with its Smart              C O U N T R I E S
Meetings and Events concept that can tailor to                                     V I E W M O R E H I G H L I G H T S
                                                                                   PA R K I N N BY R A D I S S O N /
your needs. Park Inn by Radisson Signatures is                                     H I G H L I G H T S 2 0 1 6
an exciting suite of product enhancements that
offer a more recognizable and consistent guest
experience. And it supports a strong sense of                                      V I E W PA R K I N N
community through social media, a responsible                                      BY R A D I S S O N V I D E O
business focus on working with youth and through
the award-winning Club Carlson loyalty program.

Uncomplicated, relaxed and reliable, Park Inn by
Radisson is – quite simply – the happy place to be!

                                                                           *Number of hotels and rooms operated and
                                                                             developed by The Rezidor Hotel Group
                                                                             across EMEA
6

                                                                                                                                                                                             2 4 / 2 5
                                                                                                                                                           H OT E L S

Yes, high design can be affordable.     Like RED, it combines design with art, music       prizeotel Bern City is the first joint
What started in the German port
                                        and networking while striving to be sustainable,
                                                                                           project between prizeotel and
                                                                                                                                                  1,380+

                                                                                                                                                                                             P R I Z E OT E L
                                        credible, user-oriented and consistent. Founder
city of Bremen has now opened in        Marco Nussbaum and his team still lead the         Rezidor. This will be the largest
                                        business, while Rezidor steers key strategic
Hamburg and Hannover, with plans        aspects through shareholding governance            hotel in Bern and is scheduled to
for other cities in Germany, Austria,   represented by Rezidor's President & CEO,
                                                                                           open its doors in late 2019. The 188                             R O O M S
                                        Wolfgang  M. Neumann.
Switzerland and Benelux. The
                                                                                           room hotel will be located at the

                                                                                                                                                                 2
amoeba and lyrical shapes – from
the logo to the lobby to the brightly                                                      former Swiss Post headquarters at
colored lounge spaces - were                                                               Viktoriastrasse in Bern.
dreamed up by New York designer                                                                                                                       C O U N T R I E S
Karim Rashid, making every
prizeotel a signature brand hotel.                                                         In 2016, Rezidor acquired 49%
                                                                                           in prizeotel to enter the economy
                                                                                           segment.

                                                                                                V I E W M O R E H I G H L I G H T S
                                                                                                P R I Z E OT E L / H I G H L I G H T S 2 0 1 6

                                                                                                V I E W   P R I Z E OT E L   V I D E O

                                                                                                                                                 *Number of hotels and rooms operated and
                                                                                                                                                   developed by The Rezidor Hotel Group
                                                                                                                                                   across EMEA
OCHAYA ASIAN GRILL
                                                                                           Together with some of our favorite Interior designers, we’ve developed a suite

                                                     FILINI
                                                                                           of what we hope are compelling restaurant and bar venues. The idea is simple:
           O U R    B R A N D S                                                            we make places that make our customers have great experiences and make our
                                                                                           business partners have great returns. Since we’ve been following this approach
FOOD & DRINK                                                                               over the last couple of years, every indication is that we’re doing just that.

BRANDS                                                                                     Philip Mahoney
                                                                                           Vice President Food & Drink

                                                                                                                                                                                                        2 6 / 2 7
                                                                      SURE BAR
FOOD, GLORIOUS FOOD.                                                                       QUORVUS COLLECTION                          Q           RADISSON RED               R
AND THE BEST, BUZZING BARS

                                                                                                                                                                                                        OU R
                                                                                           Embracing new luxury, Food & Drink is a key             The OUIBar+ KTCHN is the food, drink and social
The Rezidor Hotel Group’s high quality bars and                                            platform for Quorvus Collection’s distinctive           hub. The menus are created from local, seasonal
restaurants become destinations in their own                                               character of culture, Eidos. Restaurants, bars and      products so guests can experience the taste of

                                                                                                                                                                                                        BR A ND S
right, engaging with the local community and                                               event spaces embody the Collection’s defining           the city.
working with the local environment as well as                                              experience principles of Immersive, Involving
adding value for our hotel guests.                                                         and Vibrant: bespoke, luxurious venues convey
                                                                                           a sense of place and take you on a multi-sensory        PARK INN BY RADISSON
Offering consistent service excellence, produce                                            culinary journey.
                                                                                                                                                   FOOD AND DRINK                            P

                                                                      VASCOBELO
and design - mixed with a generous splash of skill
and a large dash of mood-enhancing spirit - our                                                                                                    Smart and simple, trendy and traditional, colorful
bars and restaurants are designed to buzz with                                             RADISSON BLU: SUCH                                      and captivating: Park Inn by Radisson combines

                                                     FIRELAKE
the sound of people and enjoyment, delivering                                              BRILLIANT BARS AND                      B               them for an on-the-go lifestyle that seeks comfort
                                                                                           RESTAURANTS
the very best of local, independent bar and                                                                                                        on a sensible budget. That also goes for how you
restaurant philosophies within a dynamic hotel                                                                                                     can breakfast, dine and drink.
environment.
                                                                                           Our mission is for Radisson Blu to be known
Eight fully-defined and designed restaurant and                                            as the leader in our market - acclaimed for our
bar concepts for Radisson Blu, four for Park                                               memorable food, drink and service. We want our
Inn by Radisson and two for Radisson RED.                                                  bars and restaurants to become THE place to go
These are supplemented by bespoke concept                                                  – both for guests and for locals. Iconic, stylish and
development for Quorvus Collection and a range                                             sophisticated. With a great reputation for simplicity
of licensed and third party-operated venues                                                and excellence, the food and drink we serve is
across the brands.                                                                         like the people who serve it: authentic, appealing
                                                                                           and intent on delighting. Leaving you with great
Award-winning brand-specific and totally edgy                                              taste in your mouth for all the right reasons – and
                                                     VERRES EN VERS
breakfast and Meetings & Events concepts                                                   a hankering to hurry back for more…

                                                                      THE LARDER
complete the Food & Drink portfolio.
banquettes, directional lighting,
                                         wine cabinet and chunky candles
                                         for light effects and aroma. Enjoy
                                         wine, often in magnum and beer at
Friendly, informal and                   its roots. Seasonal, ‘just-in’ plats du                                                                         A common space without the                       Bocca Buona is unashamedly
unpretentiously Italian. The             jour, Sunday brunch and fruits de            Belgian elegance combining world                                   boundaries of a traditional lobby,               Italian and simplistic in approach.
atmosphere of Filini is a noisy buzz     mer on show along with oils, breads          championship coffee with high-                                     reception, bar & restaurant – guests             It celebrates the Italian way of
with memorable Mediterranean             and cheese. B                                spec design, interesting art and                                   can ‘spread.’ They can choose the                living and brings a warm, crowdy
overtones. Pizza oven, deli stage,                                                    great music to appeal to a counter-                                space that best fits their purpose.              and noisy ambience of the Italian
communal table, booth seating and                                                     culture. Great coffee, teas, juices,                               The ‘restaurant’ is for breakfast and            street and a lively bustle into the
organic materials. Simply cooked                                                      patisserie, chocolate and displayed                                groups but, equally, little groups               restaurant. Bocca Buona style is
Italian food, based on carefully                                                      savories and a V-shaped bar, high-                                 can set up shop to eat, drink and                relaxed and informal in a casual,
chosen ingredients. B                                                                 spec coffee machinery, timber floor,                               chat. The service ethos is ‘assisted             fun, unexpected, humorous and

                                                                                                                             LIVE INN ROOM

                                                                                                                                                                                                                                                    2 8 / 2 9
                                         OCHAYA ASIAN GRILL                           leather upholstery, brass cutlery,                                 self-service’ where food and drink               stylish way. P
                                         Developed by Michelin-star chef              antique cabinets, brass & timber                                   is ordered at the bar and served at
                                         Yves Mattagne, a contemporary                tables. B                                                          table, in the lounge or at the semi-
                                         and refined take on traditional                                                                                 private meeting booths. P

                                                                                                                                             RBG
                                         cuisine from Japan, China, Vietnam,
                                         Korea and Thailand combined in

                                                                                                                                                                                                                                                    OU R
Born in the heart of Minnesota, our      the theatre of sharing ‘tapas’, the
modern, yet classic, Firelake Grill      robatagrill and steam jets. The              Inspired by Radisson Blu’s                                                                                          Bavarian heritage, authentic Munich
House and Cocktail Bar offers the        Asian interior and design features           Scandinavian roots and iconic                                                                                       design with layers of the now

                                                                                                                                                                                                                                                    BR A ND S
best of the Midwest’s great food         are based on intimate seating, show          design heritage – with an inspiring                                                                                 present an instantly recognizable
and drink heritage: open-flame           cooking, the tea library, calligraphy,       splash of the new Nordic passion                                   Perfectly simple. Simply perfect.                Bräuhaus with copper brewing
cooking and deliciously creative         symbolism and ‘tattoo’ imprints. B           for old-style techniques. It’s a                                   The buzzwords of a fresh and                     decoration, variable spaces and an
mixology. The décor features rough                                                    contemporary take on the all-day                                   vibrant grill and bar with no                    emphasis on beer, big food, music,
weathered timber, white tile and                                                      dining and hotel bar. Pivoting                                     pretensions. A menu that’s instantly             dance and fun in true Bavarian style.
copper combined with herringbone                                                      screens, raised sections and booth                                 recognizable with a design moving                Paulaner comes as a Bräuhaus or, a
and mosaic tile, classic leather                                                      seating create ambience and                                        in the same direction -- bar and grill           Wirtshaus without on-site micro-
upholstery and chain-linked drapery.     A contemporary local bar – born              intimacy through spatial zoning.                                   counter, mosaic tiling, chalkboards              brewery serving beer imported from
Flame-kissed, carefully selected         in the fair city of Dublin – with all                                                                           as part of artwork, variable seating,            Paulaner or brewed at a nearby
local and artisan produce give           the warmth and friendliness of               The Larder brings the kitchen,                                     booths, banquettes and club tables               Bräuhaus. P
                                                                                                                                                         and splashes of color. P

                                                                                                                                             EPICUREAN
indigenous flavors with a simplicity     traditional Irish hospitality in a stylish   the ingredients and the stories to
of preparation. B                        setting with dark timber, deep red           the guest as an all-encompassing
                                         and brown leather banquettes                 experience. An honest approach to
                                         and booths, communal tables and              refined dining, this menu embraces
                                         a natural-stone open fire. There’s           the prominence of local ingredients
                                         an understanding of service, of              and seasonality. B
                                         the importance produce… an                                                                                      Draw energy from the crowd. Or                   The OUIBar+ KTCHN is the food,
                                         understanding of food, design,                                                                                  seek seclusion under the sky.                    drink and social hub. The menus
Verres en Vers is our respectful,        music, art, literature, conversation,                                                                           Whether you crave the intimate                   are created from local, seasonal
thoughtful, exciting and modern          history and heritage. B                                                                                         and atmospheric – or the revelry of              products so guests can experience
interpretation of a traditional French                                                                                                                   the festival – Epicurean bars and                the taste of the city. R
brasserie, complete with dark                                                                                                                            spaces perfectly complement the
timber, floral wall coverings, mosaic                                                                                                                    shifting moods of the city. Q
floor tiles, leather-clad booths and                                                                                         BOCCA BUONA

                                                                                                                                             PAULANER
                                                                                                                                                         Q   Quorvus collection   B   Radisson Blu   R   Radisson RED    P   Park Inn by Radisson
O U R    B R A N D      P R O M I S E

A COMMERCIAL STRATEGY
PUTTING CUSTOMERS CENTER-STAGE

                                                                                                                                                                                                                                                                 3 0 / 3 1
We live and work in the middle of a global digital        FOCUSED ON CUSTOMERS                                     A KEY DRIVER FOR OUR                                   V I E W   C C O ' S   V I D E O   M E S S AG E   E   R I C D E N E E F
                                                                                                                   REVENUE GENERATION
revolution. It is all around us, influencing everything                                                                                                                                                                    E   X E C U T I V E V I C E
                                                                                                                                                                                                                           P   R E S I D E N T & C H I E F

                                                                                                                                                                                                                                                                 OU R
                                                                                                                   STRATEGY, WE CREATED A
we do on a daily basis. It has transformed our            Changing customer trends, loyalty patterns and
                                                                                                                                                                                                                           C   O M M E R C I A L O F F I C E R
industry. And it has become a key driver for              the growing power of influencers and social
Rezidor’s Revenue Generation strategy, as we              media, means it is now vital for us to be truly agile,   SIMPLE, BUT HIGHLY EFFECTIVE,

                                                                                                                                                                                                                                                                 BR A ND
                                                                                                                   FIVE-SPOKE REVGEN WHEEL. IT
                                                                                                                                                                          BUILDING
work to consistently delight our guests in a rapidly      innovative and customer focused. Our Revenue
changing world.                                           Generation efforts must powerfully focus on the
                                                          guest: we must consistently deliver a uniquely
                                                                                                                   FEATURES:

                                                                                                                                                                          PURE BREED
Success in the current shifting hospitality landscape     positive experience that indelibly connects the

                                                                                                                                                                                                                                                                 P R OM I S E
                                                                                                                                1. G
                                                                                                                                    UEST EXPERIENCE & ENGAGEMENT
requires a truly winning commercial strategy: one         customer with our hotels, our brands and our
driven by passion, perseverance and performance.          team. Every smile, every handshake, every guest                       2. BRAND WEB DIRECT

                                                                                                                                                                          BRANDS FOR
                                                          interaction offers a chance to establish this crucial                 3. INDIRECT ONLINE CONTRIBUTION
Happily, these are traits that our Revenue                connection. A chance to make the ordinary                             4. CARLSON REZIDOR INFLUENCED BUSINESS
Generation (RevGen) team of experts - in sales,           extraordinary. To delight. To make every moment                       5. BUSINESS ANALYTICS
revenue optimization and distribution, marketing,
loyalty, and corporate communications, public
                                                          meaningful – and truly memorable.
                                                                                                                                                                          WORLD-WIDE,
                                                                                                                                                                          WORLD-CLASS
relations, brand and reputation management –
possess in abundance. So now, more than ever                                                                       THESE FIVE ESSENTIAL
before, we must utilize these qualities to fuel a wide                                                             COMPONENTS TURNED IN SYNC
                                                                                                                   THROUGHOUT 2016 TO DELIVER
                                                                                                                                                                          HOSPITALITY
range of essential initiatives, designed to improve
brand awareness, customer loyalty and solid
financial performance.                                                                                             ON THREE KEY REVENUE
                                                                                                                   GENRATION PRIORITIES:
                                                                                                                   DRIVE           CAPTURE             LEVERAGE
                                                                                                                   MEETINGS &      ONLINE              LOYALTY &
                                                                                                                   EVENTS          BUSINESS            ENGAGEMENT
THE REVGEN WHEEL 5 KEY COMPONENTS

                                                                       	GUEST EXPERIENCE                                                   	INDIRECT ONLINE
                                                                          & ENGAGEMENT                                                         CONTRIBUTION

THE REVGEN                                                           Consistent, caring, customer-focused. At Rezidor, it’s all about      Online Travel Agencies (OTAs) remain a strong revenue source.

WHEEL
                                                                     the guest and the experience, every step of the way. To ensure        We partner with OTAs and other third parties to increase reach and
                                                                     the optimum guest experience, we focus on the consistent and          system contribution to total profitable revenue. And we focus on
                                                                     caring delivery of our brand promises at every moment of every        control, incremental business, connectivity and cost of acquisition.
                                                                     day. And to cultivate even stronger relationships, we leverage
                                                                     customer experience management initiatives. On the commercial
                                                                     front, we create exciting, insight-driven, targeted communications
Our goal: to drive profitable                                                                                                                	CARLSON REZIDOR

                                                                                                                                                                                                                  3 2 / 3 3
                                                                     and curated content to maximize customer engagement through
total revenue growth, targeting                                      all media and online channels. We also deliver a powerful,                INFLUENCED BUSINESS
                                                                     integrated communication and public relations strategy to serve
a system contribution of 70                                          a corporate purpose with a consistent brand message and to
percent by 2020.                                                     drive stakeholder engagement and industry leadership. Wherever
                                                                     our customers “live” in this digital world, we aim to reach out and   We have realigned our sales resources to drive total profitable

                                                                                                                                                                                                                  OU R
                                                                     embrace them.                                                         revenue, while delivering a clear and consistent message across
Rezidor’s dynamic RevGen Wheel is a unique
                                                                                                                                           our brands. This 2016 initiative has had very positive results.
tool, designed to ensure that our RevGen engine                                                                                            These included putting a strong focus on Meetings and Events

                                                                                                                                                                                                                  BR A ND
embraces the shifting dynamics of our modern                                                                                               – ensuring it remains a major business focal point, providing a
marketplace. It helps us race toward our goal as                                                                                           steady revenue stream.
we focus on our key priorities, creating a vital,                      	     BRAND WEB DIRECT
personal connection with our customers, partners,                                                                                          We implemented a leisure strategy focused on the continued shift

                                                                                                                                                                                                                  P R OM I S E
owners and team members – both offline and                                                                                                 from offline to online and from static to dynamic rates, aligning to
online.                                                                                                                                    the Indirect Online Contribution objectives.
                                                                     Our innovative, multi-channel campaigns drive high levels
                                                                     of seamless engagement through ongoing rich and relevant              And our loyalty program remained a priority in 2016. We delivered
                                                                     communications across all channels. We optimize direct online         Club Carlson benefits and recognition - consistently and
                                                                     revenue through increasing traffic and conversion on our brand.       appropriately - to drive program growth and awareness. We also
                                                                     com sites. In 2016, we made significant investments in web-based      developed a specific loyalty program for business partners and
                                                                     platforms, mobile sites and applications to drive our direct online   small/medium-sized enterprises.
                                                                     business - a business imperative in the current competitive hotel
                                                                     environment.
                                                                                                                                             	BUSINESS ANALYTICS

                                                                                                                                           Analytics are an integral component of our strategy. We continue
                                                                                                                                           the migration from data analytics to business analytics. This
                                                                                                                                           will enable us to better analyze performance; identify potential
System Contribution is the profitable total revenue generated via                                                                          opportunities and/or challenge, and evaluate the related activities
the central reservation system (direct and indirect online, global                                                                         and solutions - ensuring the right decisions are made to drive total
distribution systems (GDS) and contact centers) plus hotel direct
reservations linked to a global or national account (including
                                                                                                                                           profitable revenue.
corporate, leisure, groups and crew) or the Club Carlson Loyalty
Program.
LEVERAGE
                                                                                                                                                                   LOYALTY &
                                                                                                                                                                   ENGAGEMENT
REVGEN
PRIORITIES                                                                                                                                                         Loyalty counts above everything! This is our
                                                                                                                                                                   passionate belief. Loyalty is the key catalyst
                                                                                                                                                                   for purpose, people and profits. But industry
                                                                                                                                                                                                                         three years, with more than 15 million members
                                                                                                                                                                                                                         - 3.1 million in EMEA alone. Of those, 38 percent
                                                                                                                                                                                                                         are active and account for 23 percent of the total     "Travel and tourism ranks amongst the most
                                                                                                                                                                   experts warn that without a great experience,         room revenue. Club Carlson provides a crucial          exciting and dynamic economic sectors in the
                                                                                                                                                                   loyalty programs are becoming less valuable to        base through which we can communicate with
                                                                                                                                                                                                                                                                                world. Over the next 10 years, WTTC predicts

                                                                                                                                                                                                                                                                                                                                      3 4 / 3 5
                                                                                                                                                                   the modern customer. Loyalty is an emotion, not       customers and continue building loyalty for our
DRIVE                                                                                                                                                              a transaction. Positive customer engagement           brands and hotels.                                     the global Travel and Tourism GDP will grow
MEETINGS &
                                                                                                                                                                   has never been more important than it is today,
                                                                                                                                                                   or had a bigger impact on our bottom line. And        To achieve our goals, it is essential that we really
                                                                                                                                                                                                                                                                                by an average of 3.8% a year, directly and
                                                                                                                                                                                                                                                                                indirectly. Its GDP contribution to the world's
EVENTS                                                                                                                                                             the increasing expectation of customers is not a
                                                                                                                                                                   passing fad; everything needs to be better and
                                                                                                                                                                                                                         LISTEN to our customers, gathering relevant
                                                                                                                                                                                                                         feedback and data. This actionable information is      economy will rise to 10.5%. And by 2025, it will

                                                                                                                                                                                                                                                                                                                                      OU R
                                                                                                                                                                   faster with Generation Now.                           a vital tool that helps us define the future of our
                                                                                                                                                                                                                         customer engagement strategy and activities.           account for 10.7% of the world's employment.
                                                     CAPTURE                                                                                                       People remain at the very center of all our                                                                  This is great news for an international player

                                                                                                                                                                                                                                                                                                                                      BR A ND
Meetings, Incentives, Conferences and Events
(MICE) are a crucial part of Rezidor’s business.     ONLINE                                                                                                        business success in our increasingly digital world.
                                                                                                                                                                   So, the ways in which we engage with, serve and
                                                                                                                                                                                                                         But customers are more than just digital feedback.
                                                                                                                                                                                                                         They’re real people. And we believe that by            like Carlson Rezidor! With our global portfolio,
And, despite fierce competition, we continued to     BUSINESS                                                                                                      empower them are key to our future RevGen             capturing, studying and better understanding the       world-class hotel brands and the best Yes I
see great growth opportunities in this important                                                                                                                   growth.                                               emotions that drive their responses and booking        Can! team delivering memorable moments to

                                                                                                                                                                                                                                                                                                                                      P R OM I S E
market segment during 2016.                                                                                                                                                                                              choices, we can offer an outstanding hospitality
                                                                                                                                                                   Rezidor is steadily aligning our strategy across      experience that will win their loyalty for life.       our guests worldwide, we are very confident
We introduced a range of initiatives to                                                                                                                            all markets to communicate our brand value                                                                   that our commercial strategy will capture all
enhance our M&E website - and to develop our
engagement with direct/indirect M&E booking
                                                     Engaging, relevant, highly impactful
                                                     communications are key to our success as
                                                                                                            The key to driving online business is simple.
                                                                                                            Everything we do, and the way we do it, reflects
                                                                                                                                                                   propositions and corporate news – consistently
                                                                                                                                                                   across all channels and to a dedicated pool of                                                               future possibilities for driving revenue and
channels/other revenue generation resources, all     we strive to capture more of the ever-growing          our passionate belief that the Customer Experience     influencers and social hand-raisers. We know that                                                            building loyalty."
designed to drive business and engagement with       online business market. All of our 2016 Revenue        sits at the very heart of our RevGen wheel and our     by inspiring global influencers, supporters and
Club Carlson members.                                Generating activities were based on unlocking          business priorities. Customers are “mobile;” brands    customers to share our stories, we can strengthen
                                                     potential key feeder markets and leveraging            are not…yet!                                           our reputation and drive profits, making a positive
Rezidor offers M&E planners many unique              cross-selling opportunities across 80+ countries.                                                             impact on the communities in which we operate -
advantages, including a world-class portfolio of                                                            We must be where our customers are. So Rezidor’s       and on the industry itself.
great hotels and locations. Our industry-leading,    We made significant investments in our                 2016 Customer Relationship Management
free, high-speed Internet access for all, since      technology to offer the “one & only” digital           (CRM) plan focused on personalized marketing,          Loyalty is embedded into our unique Yes I Can!                                                               Eric De Neef
2005, made us a innovative leader and a              platform - bringing our customers and hotels           personalized content, personalized offers,             service culture. Loyalty is personal. So, we must
                                                                                                                                                                                                                                                                                Executive Vice President & Chief Commercial Officer
preferred business partner. And our innovative       together. Focused on being mobile first, our digital   personalized communication and personalized            ensure that we connect with all our stakeholders in
service concepts – Experience Meetings and           strategy aims to increase the volume of visitors       rewards. We engage with our customers every step       the most meaningful, credible and personal manner.
Smart Meetings & Events, plus Brain Food and         and bookers to our brand sites, while inspiring        of the way: from pre-booking to staying to post-stay
Smart Food – all delivered with our unique service   more guests to book additional adventures with         and return-stay.                                       Our globally recognized Club Carlson loyalty
attitude, make us an undisputed MICE leader.         our restaurants, bars, spas, meetings and events.                                                             program has nearly doubled in size over the last
GENERATION Z

                                                                                                                                                                                                                                        MULTI-GENERATIONAL
                                                                                                                                                                                                                                            TRAVELERS
                                                                                                                                                                                        SHE-ECONOMY

             I N D U S T R Y      R E S E A R C H                                                                                                              4     th

TRAVEL & TOURISM REMAINS                                                                                                                               L A R G E S T G L O B A L
                                                                                                                                                             I N D U S T R Y
                                                                                                                                                                                                                                                       RELEVANCE

ONE OF THE FASTEST GROWING                                                                                                                                                         BLEISURE
                                                                                                                                                                                                                  MAXIMIZE
                                                                                                                                                                                                                   SYSTEM

ECONOMIC SECTORS
                                                                                                                                                              1.5
                                                                                                                                                                                                                CONTRIBUTION

                                                                                                                           1 in 11                                                                                DELIVERY

                                                                                                                                                                                                                                                                    3 6 / 3 7
                                                                                                                             O F A L L J O B S             T R I L L I O N U S D                                                                             DATA
                                                                                                                           I N T H E W O R L D           I N E X P O R T S O R
INTERNATIONAL TRAVEL                                      The UNWTO Confidence Index points to a                                                       $ 4 B I L L I O N A D AY
& TOURISM                                                 continuation of growth in tourism in 2017.

                                                                                                                                                                                                                                                                    M A R K E T
                                                          Prospects remain positive overall and at a level
The demand for international tourism remained             similar to those of recent years.
strong in 2016, in spite of challenges, according                                                                                                                                        IMMERSIVE
to the UNWTO World Tourism Barometer, January
2017. International tourist arrivals grew by 3.9%         A POWERFUL SOCIO-
                                                                                                                           1,235                              7%                        TECHNOLOGY                                            URBAN HOTELS

                                                                                                                                                                                                                                                                    R E S E AR C H
to 1.235 million. Some 46 million more tourists           ECONOMIC ENGINE
(overnight visitors) travelled internationally in 2016,
compared to the prior year.                               The impact of tourism on the world’s economy                                                     O F W O R L D ’ S
                                                                                                                                  M I L L I O N              E X P O R T S
                                                          cannot be ignored. It is a powerful driver of socio-             I N T E R N AT I O N A L
Overall, 2016 was the eight consecutive year
of sustained growth, following the 2009 global
                                                          economic progress and is the engine for 10% of
                                                          GDP. It provides 1.5 trillion USD in exports annually,
                                                                                                                         A R R I VA L S I N 2 0 1 6
                                                                                                                                                                                                      MOBILE
economic and financial crisis. The industry has
not seen such positive performance and solid
                                                          or 4 billion USD daily. The long-term forecast for
                                                          tourism is impressive with growth expected to
                                                                                                                                                                                                                               SAFETY
growth since the 1960s. In 2016, 300 million              top both worldwide GDP growth and the average                                                     F O R E C A S T
more international tourists traveled the world as

                                                                                                                                                             1.8
                                                          growth of the sector.

                                                                                                                              10%
compared to the pre-crisis record in 2008. The
number of international tourists has surged from
25 million in 1950 with an anticipated jump to            The World Travel and Tourism Council (WTTC)
1.8  billion in 2030.                                     reports that within G20 countries, China, India,
                                                          Indonesia, Mexico and South Africa are expected                                                      B I L L I O N
                                                                                                                   O F G D P C O N T R I B U T I O N    I N T E R N AT I O N A L
In 2016, Africa enjoyed an 8% rebound after two           to be among the fastest growing tourism                     D I R E C T, I N D I R E C T
weaker years. Europe showed mixed results (+2%)           and travel destinations. Among the non-G20                                                         T O U R I S T S
                                                                                                                   A N D I N D U C E D I M PA C T             B Y 2 0 3 0
with double-digit growth in some destinations             economies Kyrgyzstan, Myanmar, Tanzania,
offset by decreases in others. Demand in the              Vietnam and Zambia are expected to show the
Middle East was uneven, falling 4%, with positive         strongest growth.
results in some destinations, but declines in others.
INTERNATIONAL   E U R O P E

TOURIST         620 MILLION (50%)
ARRIVALS                                                             D E S T I N AT I O N S                              W I T H       D O U B L E - D I G I T                       G R O W T H

2016                                                                 35% ICELAND 18% SLOVAKIA 16% KENYA 13% NORWAY, PORTUGAL
                A S I A                     PAC I F I C
                                                                     14% BULGARIA, SOUTH AFRICA 11% IRELAND, LEBANON, MAURITIUS
                303 MILLION (25%)
                                                                     10% CAPE VERDE, OMAN, SEYCHELLES, SPAIN

                                                                                                                                                                                                                                            3 8 / 3 9
                                                                     But tourism does more than help the economy.             In July 2016, AccorHotels purchased Fairmont           It is too early to gauge the impact of Brexit and
                A M E R I C A S                                      David Scowsill, president and CEO of WTTC says,          Raffles Hotels International for USD 2.7 billion.      the travel ban issued by US President Donald

                                                                                                                                                                                                                                            K E Y
                                                                     “Travel and Tourism bridges divides between                                                                     Trump on the hotel industry, but there is concern

                201 MILLION (16%)
                                                                     cultures, fosters understanding across religious         Consolidation is expected to continue as hotel         that restrictive policies might adversely affect the
                                                                     and geographic boundaries, and generates more            operators attempt to capture a bigger share of the     hospitality industry and travel-related businesses,

                                                                                                                                                                                                                                            M A R K E TS
                                                                     peaceful co-existence. Our sector is responsible         market and maximize efficiencies. Jon Gray, global     slowing growth in the hospitality sector.
                                                                     for the livelihoods of millions worldwide.”              head of real estate for Blackstone Group LP, the
                                                                                                                              largest shareholder in Hilton Worldwide Holdings
                                                                     Currently, tourism provides one out of every 11 jobs     Inc. told the audience at the New York University
                                                                     worldwide. By 2026, one in nine jobs is expected         International Hospitality Industry Investment
                A F R I C A                                          to be in tourism, fueling the world’s economy,           Conference in New York City, “It’s more efficient to
                                                                     providing livelihoods for millions of people around      be a big hotel company.”

                58 MILLION (5%)                                      the world and alleviating poverty.                                                                              Hospitality is all about the very
                                                                                                                                                                                     human trait of empathy. And
                                                                                                                              2017 OUTLOOK
                                                                     CONSOLIDATION                                                                                                   businesses need to remember that
                M I D D L E                               E A S T    One of the biggest trends in 2016 was continued
                                                                                                                              Looking ahead, tourism experts are optimistic about
                                                                                                                              2017 and expect growth to be similar to that of
                                                                                                                                                                                     humans should remain
                                                                     consolidation in the hotel industry, including the       recent years. Experts in the public sector are more    front and center to create incredible
                                                                                                                                                                                     experiences, helped — but in no
                54 MILLION
                                                                     acquisition of Carlson Hotels, Rezidor’s majority        positive than those in the private sector. Those in
                                                              (4%)   shareholder by HNA Tourism Group, which also
                                                                     acquired a 25% share in Hilton International. Marriott
                                                                                                                              Africa have the highest expectations for the coming
                                                                                                                              year with a UNWTO barometer score of 141. The          way supplanted — by modern
                                                                     International acquired Starwood Hotels & Resorts         Middle East follows at 137. European experts are       technology.
                                                                     Worldwide in a USD 13 billion deal, creating the         also optimistic with a score of 131, above the prior
                                                                     world’s largest hotel group with more than 30            two years. Their confidence reflects the resiliency
                W O R L D                   TOTA L                   brands, 5,500 hotels and 11 million rooms. China’s       of the European marketplace in spite of safety and     Rafat Ali
                                                                     Anbang Insurance Group Co. purchased Strategic           security issues in some destinations.                  Founder of Skift

                1,235 MILLION
                                                                     Hotel & Resorts for about USD  6.5 billion.

                ©World Tourism Organization (UNWTO) January 2017
HOTELS & ROOMS
PER COUNTRY
                                                                                                                                                                                                                               60
                                                                                                                  71
Map   Country          Hotels   Rooms                                                                                                  22                                                                                                                                                     Map   Country       Hotels   Rooms   Map   Country          Hotels    Rooms
                                                                                              54
 1    Algeria            2      306          31                                                                                                                                                                                                                                               29    Guinea          1      249     57    Portugal           1       221
                                                                                                                                             20
2     Angola             6       911                                                                                                                                                                                                                                                          30    Hungary         4      857     58    Qatar              1       583
                                                                                                    18                                           7
                                                                                                                                  40
3     Armenia            1       142                             33         79                                                                                                                                                                                                                31    Iceland         3      401     59    Romania            3       868
                                                                                          52                                43
4     Austria            4       451                                                                                                                                                                                                                                                          32    Iraq            1      290     60    Russia            39      10,446
                                                                                                   26                       56

                                                                                                                                                                                                                                       480+
                                                                                          8
5     Azerbaijan         1      248                                                                                                                                                                                                                                                           33    Ireland         11     1,717   61    Rwanda             2       453
                                                                                          44       17                  66                         49
                                                                                 23                                              60                         78
6     Bahrain            2      574                                                       72             4        30 67
                                                                                                                                            59                                                                  36                                                                            34    Italy           3      579     62    Saudi Arabia      33      6346
                                                                                                                                 64          10                                                           80
7     Belarus            1      200                                                                                    15                                                                                            39                                                                       35    Ivory Coast     1      261     63    Senegal            1       241

                                                                                                                                                                                                                                                                                                                                                                             4 0 / 4 1
                                                                                                                                                                             25
                                                                                                             34                   45                                                                                                            H O T E L S
8     Belgium           14      1,954                       57                                                                                             75                                                                                                                                 36    Kazakhstan      2      429     64    Serbia             1       236
                                                                       70                                                                                                              5
                                                                                                                                 28                                          3
9     Benin              1      203                                                                                                                                                                                                                                                           37    Kenya           3      520     65    Sierra Leone       1       162
                                                                                                   74
                                                                                                         47
10    Bulgaria           2      227                                                                                                                        16                                                                                                                                 38    Kuwait          3      428     66    Slovakia           2       429
                                                             50                                                                                                  41     32

                                                                                                                                                                                                                                                                                                                                                                             K E Y
11    Cape Verde         1      240                                                   1                                                                                                38                                 13
                                                                                                                                                                                                                                                                                              39    Kyrgyzstan      1       181    67    Slovenia           1       237
                                                                                                                                        42             19
12    Chad               1       175                                                                                                                                                                                                                                                          40    Latvia          7      1,566   68    South Africa      14      2,733

                                                                                                                                                                                                                                    105,000+
                                                                                                                                                                                            6

                                                                                                                                                                                                                                                                                                                                                                             M A R K E TS
13    China              1      360                                                                                                                                               62            58                                                                                            41    Lebanon         1      185     69    South Sudan        1       158
                                                                                                                                                                                                      76
14    Congo              1       178                             46                                                                                                                                                                                                                           42    Libya           2      507     70    Spain              3       665
                                                                                                                       12
                                                                                                                                                                                                           55
15    Croatia            2      658                                                                                                                                                                                                                                                           43    Lithuania       6      978     71    Sweden            16       4,021
                                              63                                                                                                                                                                                                R O O M S
                                        11
16    Cyprus             2      285                                                                                                                                                                                                                                                           44    Luxembourg      1       99     72    Switzerland        7       1,378
                                                                                                                                                                       21
                                                  65                                                                                                  69
17    Czech Republic     3      599                                                                                                                                                                                                                                                           45    Macedonia       1      210     73    Togo               1       320
                                                       29
                                                                            27                                                                              77
18    Denmark            8      1,932                                 35                      9
                                                                                                   53                                                                                                                                                                                         46    Mali            1      190     74    Tunisia            5       1,238
                                                                                 73
                                                                                                                                 14
19    Egypt              7      2,891                                                                   24                                                                                                                                                                                    47    Malta           2      581     75    Turkey            23       4,615
                                                                                                                                                       61               37
20    Estonia            4      1380                                                                                                                                                                                                                                                          48    Mauritius       3      442     76    UAE               23      5,750
21    Ethiopia           2      377                                                                                                                                                                                                                                                           49    Moldova         1       143    77    Uganda             1       195
22    Finland            8      1,754                                                                                                                                                                                                                                                         50    Morocco         1      198     78    Ukraine            6      1,229
23    France            16      2,855                                                                                                                                                                                                                                                         51    Mozambique      2      458     79    United Kingdom    37       7,472
                                                                                                                                                                                                                                                  80 +
24    Gabon              2      470                                                                                                                                                                                                         C O U N T R I E S                                 52    Netherlands     5      1,281   80    Uzbekistan         1        111
                                                                                                                                                                  51
25    Georgia            7      1,147                                                                                   2                                                                                                                                                                     53    Nigeria         7      1,276   81    Zambia             1       142
                                                                                                                                                 81
                                                                                                                                                                                                     48
26    Germany           41      9,484                                                                                                             82
                                                                                                                                                                                                                                                                                              54    Norway         25      6,351   82    Zimbabwe           1       245
27    Ghana              1      207                                                                                                                                                                                                                                                           55    Oman            5      857
28    Greece             2       471                                                                                                                                                                                                                                                          56    Poland         12      2,752         Grand Total      483      105,159

                                                                                                                                       68                                                                                            *Number of hotels and rooms operated and developed by
                                                                                                                                                                                                                                       The Rezidor Hotel Group across EMEA
N O R D I C S

   60 HOTELS                                                                                 E A S T E R N                   E U R O P E

14,459 rooms
In the Nordics, we will continue to defend our leading
                                                                                             131 HOTELS
hotel chain position in the area, and introduce our
lifestyle select Radisson RED and luxury brand,
                                                                                                       29,888 ROOMS

                                                                                                                                                                                        4 2 / 4 3
Quorvus Collection, in capital cities.

                                                                                             In Eastern Europe, Poland continues to be a key
                                                                                             focus country. Our growth plan for the region
                                                                                             includes Radisson RED hotels in key cities. For Park
R E S T O F

                                                                                                                                                                                        K E Y
                                                                                             Inn by Radisson, we will concentrate on scaled
W E S T E R N                     E U R O P E                                                growth in Baltics, Russia and other CIS countries; and
                                                                                             we will continue to fill gaps with Radisson Blu.

                                                                                                                                                                                        M A R K E TS
149 HOTELS
                                                                                             M I D D L E E A S T,
        29,493 ROOMS                                                                         A F R I C A & OT H E R S

                                                                     18 3,585                   143 H O T E L S
We will continue our organic growth, roll out
Radisson RED and increase Park Inn by Radisson
hotels in Benelux. We remain committed to a solid
                                                         OPENINGS
                                                                                             31,319 rooms
Radisson Blu portfolio in the UK, and aim to further
develop our upper-upscale core brand at key                                      R O O M S
                                                                    H OT E L S
destinations like Geneva, Munich and Vienna.

                                                           2016
                                                                    45 8,200
                                                                                             The Kingdom of Saudi Arabia and the United Arab
                                                                                             Emirates remain key strategic destinations, and our
                                                                                             focus lies on the delivery of our strong pipeline.
                                                         SIGNINGS                            Across Africa, we’ll expand the network further to
                                                                                             defend our leading position.
                                                                                                                                                      *Number of hotels and rooms operated
                                                                                                                                                        and developed by The Rezidor Hotel
                                                                    H OT E L S   R O O M S                                                              Group across EMEA
O U R     G R OW T H       S T R AT E G Y

FIRED UP,
READY TO GROW!

                                                                                                                                                                                                                                                           4 4 / 4 5
Growth is a major success story for Rezidor. As one     LONG-TERM POTENTIAL                                   segment, we are now driving the same ambition          V I E W   C D O ' S   V I D E O   M E S S AG E   E L I E YO U N E S
                                                        OF EMERGING MARKETS
of the world’s most dynamic, fastest growing hotel                                                            for Africa. Our portfolio growth creates value to                                                       E X E C U T I V E V I C E
                                                                                                                                                                                                                      P R E S I D E N T & C H I E F

                                                                                                                                                                                                                                                           OU R
companies, we dreamt of growth, we lived it, we                                                               our shareholders and helps us make meaningful
                                                                                                                                                                                                                      D E V E LO P M E N T O F F I C E R
planned it… and we delivered it!                                                                              social and economic contributions to the local
                                                        Emerging markets make up nearly 50% of Rezidor’s      communities and economy. In fact, we are proud

                                                                                                                                                                                                                                                           G R OW T H
                                                                                                                                                                     GLOBAL
Our long-term objective is asset-light growth           operating room portfolio. Despite some recent         to state that 90% of our employees in African
predominantly based on fee business. With a select      disturbances, we remain confident in the long-term    hotels are locals.
geographic reach, diversification helps Rezidor         potential of emerging markets, which fit with our

                                                                                                                                                                     GROWTH
navigate through market swings and still grow           asset-light model and balance sheet capabilities.     As a world’s most ethical company and a
our bottom line. This strategy has enabled us to                                                              responsible business, every time we open a new

                                                                                                                                                                                                                                                           STR ATE GY
increase our emerging markets portfolio by 11% per      Poland, one of the fast-growing economies in          hotel in Africa and other emerging markets, we
annum since 2010.

2016 was a milestone year for organic growth
                                                        Europe, is now a focus market for Rezidor, offering
                                                        strong economics and opportunities for scale.
                                                        Rezidor is privileged to have a solid existing
                                                                                                              are helping make a positive impact – be it social
                                                                                                              or economic.                                           HAS ALWAYS
with 45 transactions, of which 75% are already
under construction. We also grew laterally with the
                                                        market presence and brand recognition in Poland,
                                                        which serves as a solid foundation to deliver our
                                                                                                              We remain strong in the Middle East, especially
                                                                                                              Saudi Arabia, which has been a very liquid             BEEN OUR
                                                                                                                                                                     GOAL
acquisition of a 49% stake in prizeotel, our new        ambitious growth plans in this market.                market over the last five years. Demand has been
economy brand which is now on an ambitious                                                                    growing, but has possibly been outpaced by
journey. We also proudly opened the world’s             We are proud and humbled to have the largest          supply. Despite the economic cyclical challenges
first Radisson RED in Brussels/Belgium. Our bold        pipeline of hotels and rooms under development        in the market, specifically driven by oil prices, we
lifestyle select brand is quickly becoming a favorite   on the African continent. With vast natural and       have 25 to 30 hotels under construction and are
delivering four new signings in Dubai, Tbilisi,         human resources, an improving infrastructure and      optimistic about the country’s 2030 vision.
Jeddah, Vilnius and Krakow, and more underway.          rapid urbanization, a growing middle class and
                                                        huge demand for modern, internationally branded       Striking the ideal balance between volatile but lu-
                                                        accommodation, Africa is an ideal market for an       crative emerging markets and highly competitive
                                                        ambitious hotel operator like Rezidor. Building       but stable mature markets, will be a focus in 2017.
                                                        on our leading position in Europe with Radisson       Opening our hotels and growing our new brands
                                                        Blu, the largest network in the upper upscale         will equally be one of our top priorities.
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