The realm of hospitality is a constantly evolving landscape, and few names hold as much sway as the Radisson Hotel Group. Elie Younes, Executive Vice President and Global Chief Development Officer of this future-forward organisation, recently shared the Group’s visionary insights in an interview at HICAP 2023.
Covering a range of topics, Younes provided a look into the future of the hospitality industry from impressive growth statistics to the company's commitment to Responsible Business . The video below delves deeper into these aspects:
A year of remarkable growth
Radisson Hotel Group has had a remarkable year, as it continued to lead strategic geographical expansions and welcomed more than 100+ hotel openings and signings in APAC and EMEA in the first half of the year.
Opening in late 2024, the 209-room Radisson Blu Hotel, Shanghai Stadium, situated at Xujiahui Sports Park, is part of Shanghai's prominent cultural and sports complex.
During this period, Radisson Hotel Group expanded with 8,000+ keys across EMEA and 60+ hotels in APAC with China accounting for over half of these openings, alongside new projects added to the UK, Germany, Poland, Italy, Saudi Arabia, India, and Southeast Asia, offering unique experiences for guests and owners.
Thailand saw significant growth with eight new hotels added to the portfolio since 2022 , totaling over 1,300 rooms. In 2024, Bangkok and Phuket will soon welcome new brands including Park Inn by Radisson and Radisson RED.
Meanwhile, Vietnam’s pipeline includes eight upcoming hotel openings, notably Radisson RED's debut in Danang with a 165-key hotel featuring various social and dining spaces. Radisson Blu Resort Hoi An, the largest resort in the portfolio with 734 keys, and 126-key Radisson Resort Mui Ne are also in the works.
Success with diverse brands
With a clearly defined brand architecture, the Group leverages its collection of industry-leading brands that can meet the needs of every segment supporting hotel owners and investors. Radisson Hotel Group’s 10 leading brands are: Radisson Collection, art’otel, Radisson Blu, Radisson, Park Plaza, Radisson RED, Radisson Individuals, Park Inn by Radisson, Country Inn & Suites by Radisson, and prizeotel which enables the ability to cater to both ends of the spectrum.
The success of the Group is remarkable, particularly the growing demand for its lifestyle luxury brand Radisson Collection and upper upscale brand Radisson RED.
The upcoming Radisson Collection Resort, Marsa Alam Port Phoenice, slated for early 2025, epitomises the brand's blend of local charm and modern comforts.
Radisson Collection offers distinctive properties in prime locations, blending local authenticity with modern amenities. Expanding into markets like Boracay, Philippines; Galle, Sri Lanka; and Srinagar, India.
The (upper) upscale Radisson RED brand such as the Radisson RED Cebu Mandaue which will open in 2024, offer value to guests and owners with cost-effective construction and appealing interiors.
Radisson RED reinvents conventional hospitality, offering informal services, a vibrant social scene, and bold design. Guests experience a seamless blend of work and leisure, enjoying endless opportunities for relaxation and productivity. Each hotel is cool, functional, and a gathering spot for guests and locals, situated in city centers, appealing to both business and leisure travelers. Its cost-effective construction also makes it an ideal choice for owners, developers, and investors.
Younes is clearly enthusiastic about the Group's diverse range of brands. Younes notes, "We look at our brands in a way that must be relevant to both customers - the guest and the owners."
Empowering owners for success
In the words of Younes, "We focus on delivering two things to our owners: a revenue advantage and a cost advantage."
In 2017, a comprehensive global company analysis prompted a €300M investment in strategic initiatives: brand architecture, IT and revenue management systems, and a new loyalty programme, showcasing Radisson Hotel Group's adaptability and forward-thinking approach.
Radisson Hotel Group's commercial engine drives 70% of revenues, boasting a robust GOP margin of around 40% worldwide. The Group's distribution system is among the strongest in the industry – the collaboration between Radisson Rewards, boasting nearly 14 million members, and Jin Jiang Loyalty Program, with close to 190 million members, ensures guests benefit from increased choices and enhanced perks.
In addition, other innovative initiatives launched by Radisson Hotel Group include:
1. Successful web and mobile apps offering direct booking channels, crucial for their digital transformation, designed with a customer-first approach, allowing easy hotel search and booking.
2. Focused on personalised experiences, offering tailored content in over 60 markets on their website and app, resulting in higher conversion rates and increased user engagement.
3. Launching immersive experiences, allowing guests to virtually explore hotel spaces through laptops, mobiles, or VR headsets, enhancing customer engagement and property showcasing.
Radisson Hotel Group has rolled out with immersive digital experiences enabling guests to virtually tour hotel premises via laptops, mobiles, or VR headsets, enriching engagement and property display.
Radisson Hotel Group's commitment to immersive experiences extends not only to their guests but also to their owners. Their dedication to enhancing the digital guest journey strategically boosts hotel revenue, earning them recent industry recognition for innovation and technology.
Radisson Hotel Group's commitment to owners reflects in strategic revenue generation and cost optimization, maintaining impressive 40-45% GOP margins. Evolving its operating model, the Group tailors brands and business models, providing substantial value despite inflation, resulting in approximately 70% of owners with multiple hotels with Radisson Hotel Group due to its continuous pursuit of value creation.
The green path to net zero
Radisson Hotel Group stands as a frontrunner in the sustainability realm, spearheading initiatives to assist asset owners in achieving net zero emissions by 2050.
At the core of their efforts is the ambition to attain Net Zero by 2050, guided by targets established under the COP21 Paris Agreement. The strategies deployed encompass eco-friendly hotel buildings, adopting renewable energy sources, and hosting carbon-neutral events to reduce the Group's ecological footprint.
Radisson Hotel Group’s journey to net zero involves eco-friendly hotel buildings, enhancing energy efficiency, eco-label certifications, renewable energy use, and eco-conscious operations, targeting a 50% carbon cut by 2030.
Radisson Hotel Group's path to net zero includes green hotel infrastructure, boosted energy efficiency, renewable energy adoption, and eco-conscious operations. Based on approved science-based targets, the Group aims for a 50% carbon emission reduction by 2030, and to offer a responsible, value-driven experience for guests and owners.
To solidify its dedication, Radisson Hotel Group guarantees carbon-neutral events across all its hotels, offsetting more than 61,000 tons of CO2 since May 2019. These offsets are the equivalent of eliminating about 13,300 petrol-driven cars.
In collaboration with the World Travel and Tourism Council (WTTC), Radisson Hotel Group introduced the Hotel Sustainability Basics, outlining essential operational guidelines for sustainability. Together with WTTC and the Sustainable Hospitality Alliance (SHA), the Group spearheads initiatives like the Pathway to Net Positive Hospitality, striving to ensure sustainable travel is convenient and enjoyable, positively impacting both the environment and the local communities.
Commitment to reshaping hospitality
The Radisson Resort Phuket Mai Khao Beach presents a upscale tropical setting in Phuket, providing guests with beachfront access.
Radisson Hotel Group’s commitment to growth, sustainability, inclusivity, along with its rich diversity of brands positions them at the forefront of the ever-evolving hospitality landscape.
With the Group’s growth, diverse brand success, commitment to empowering owners, immersive digital experiences, sustainability values, Radisson Hotel Group emerges as a thought leader in the hospitality sector. Younes’ insights showcase not just the Group’s achievements but also their commitment to reshaping the industry's future.
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