WASHINGTON — Carlson, which operates and franchises mostly midscale and upscale hotels, is eyeing an expansion into the luxury and economy sectors, executives said Monday.
COO Thorsten Kirschke told more than 1,400 hotel owners and operators gathered for Carlson's annual business conference here that the company doesn’t want to have too many brands, but it does want to enter the two categories where the company does not currently compete.
Carlson will enter the luxury market with Hotel Missoni, the lifestyle brand created by its European partner, the Rezidor Group, said Gordon McKinnon, Carlson's executive vice president and chief branding officer.
Rezidor operates Carlson’s brands in Europe, the Middle East and Africa. Now Carlson has reached a deal with Rezidor to expand Missoni beyond EMEA, he said.
"You will see Hotel Missoni begin to appear," McKinnon said.
McKinnon also shared some renderings for an economy brand that he described as "styleconomy" or "style on a budget." Carlson hasn't named the brand yet.
"It’s going to be a very interesting product, very modern," McKinnon said.
Kirschke also told the crowd that the company has been making great strides toward its Ambition 2015 plan that was announced during last year’s conference.
A key element of that plan is improving and repositioning the Radisson brand as a solid upscale contender and introducing the upper-upscale Radisson Blu to North America.
"In 2010 we had good stabilization of Radisson after two tough years where we were afraid of it sliding away," Kirschke said.
When the Radisson overhaul was announced last year, he said, 25% of North American properties were committed to physical upgrades. That number now stands at 80%, he said.
About 12% are no longer in the Radisson portfolio, and Kirschke said he expects further attrition of 10% to 15% in the next year "because we will not tolerate free riders."
The first Radisson Blu in the U.S. is scheduled to open in Chicago this year. A second one is being developed at the Mall of the Americas in Bloomington, Minn., and Kirschke hinted that the company would soon announce a flagship in New York City.
Carlson reported solid revenue growth for 2010, with CEO Hubert Joly announcing that systemwide sales for Carlson’s global hotel business increased 12% to $6.5 billion.
In addition to Radisson and Radisson Blu, Carlson's brands include Country Inn & Suites, Park Inn and Park Plaza.