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Carlson's Joly Plans Hotel Revival, Long-Term Development
Nov 16, 2009Joly, who became Carlson's top executive in March 2008, this summer assumed direct control over Carlson Hotels Worldwide (BTNonline, July 28). He said it is not an interim appointment. "It's like Accor," according to Joly, "where Gilles Pélisson is the head of Accor and doesn't have someone run the hotels business for him."
Although Carlson executives are mum on specifics, future Radisson development will center around two distinctions: the upscale "green" Radisson, centered around primary and secondary cities and resorts, and the upper upscale Radisson Blu, which the company began rolling out early this year as it rebranded its Radisson SAS properties.
Radisson currently has 360 properties with the green designation and 150 Radisson Blu properties worldwide operating and under development. "If you think about Mercedes-Benz, everything they do is considered a Mercedes-Benz, but within that you have the D-Class, the S-Class and so forth," Joly said.
Joly said the company also for the first time has introduced design standards for Radisson properties and will introduce service concepts that have worked well internationally to North American properties.
With 421 hotels in operation, Radisson is the second-largest brand in Carlson Hotels' portfolio, behind only the midprice Country Inns & Suites. In the past 20 years, the brand has grown from virtually no international presence to having a majority of its properties outside North America, but still has a disparate image, Joly said.
"People who've not traveled outside of Oklahoma might not have a full appreciation of what is a very vibrant, successful brand internationally," Joly said. "We're very successful in Latin America and Asia, and we have some great properties in the United States. We want to crystallize the essence of that and roll it out mainly in North America."
Carlson's largest brand, Country Inns & Suites, is nearing its 500th property and has remained largely a domestic brand. The midprice brand recently debuted in India, and Joly said Carlson is considering increasing its international presence.
Park Inn, which opened its 100th property this year, in October was rated the top midprice brand by European travelers in J.D. Power and Associates' European Hotel Guest Satisfaction Survey. The brand has little presence outside of Europe, but Joly said that direction might change next year.
Carlson Hotels' sales teams currently have a mostly regional approach, but next year will take a more inter-theater sales strategy, according to Joly.
He also remained mum on how the company planned to use the $175.3 million in capital from the Carlson Marketing sale, which was announced early this month. The transaction with Groupe Aeroplan, an international loyalty management company based in Canada, is expected to close in December.
Carlson Marketing, the foundation of the entire Carlson company, began as the Gold Bond Stamp Co. in 1938. While Joly said the decision was an emotional one, the sale was necessary so that Carlson could concentrate on its hotels, restaurant and travel businesses.
"A number of players had approached us," Joly said. "Even though marketing was the roots of the company, the tree has really outgrown its roots."
—Nielsen Business Media
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