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Carlson Hotels Worldwide has bought up additional shares in its Brussels-based partner company, Rezidor, taking its ownership from 35% to 41.7%. The 6.7% was acquired from SAS Group, which now has no remaining shares in the company.
The relationship between Carlson and Rezidor was established in 1994 when the two companies set up a Master Franchise Agreement, whereby Rezidor was given the franchising rights for the Radisson brand in Europe, the Middle East and Africa.
This contract has since been extended to include Carlson”s Regent Hotels & Resorts, Country Inns & Suites and Park Inn brands, allowing Rezidor to grow its portfolio from 29 hotels in 1994 to the 227 it operates today.
Despite selling its remaining shares in Rezidor, SAS Group has agreed to allow the Radisson brand in the EMEA region to continue operating Radisson SAS-branded hotels for the next three years.
A Rezidor spokeswoman confirmed to ABTN: ”The Radisson SAS brand has a good, strong reputation for high quality, especially in the Scandinavian region and if we dropped the name too quickly without proper explanation, we feel it may have a negative effect.”
The company is therefore going to fade out the SAS name over time, with all new properties to hold only the Radisson branding and all existing ones continuing with the SAS addition for the time being.
”The intention of SAS Group to sell its remaining shares in Rezidor represented a unique opportunity for Carlson to increase its investment in Rezidor,” said Carlson president and CEO, Jay Witzel.
”The business performance of Rezidor has been very good, making this a sound investment which also supports our commitment to the continuing growth and success of our brands in the EMEA.”
Shares were purchased at the average closing price traded in the period 18-24 May, equalling $8.43 per share and $85,258,504 in total.