At the Rezidor Hotel Group’s Capital Market Day in London today, the company announces their “Route 2015 Strategy” – a number of initiatives to improve the group’s EBITDA margin. Rezidor’s plan will focus on several targeted areas which combined are expected to push the margins by 6 to 8 percentage points by 2015; assuming that market RevPAR growth will be in line with inflation.
“Our main focus is improving profitability both in absolute terms and relative to the industry. In the current macroeconomic situation, we have to focus on what we can control ourselves, and I feel confident we will be able to improve our underlying margins over the next few years while continuing to pursue our asset-light growth strategy”, said Rezidor’s President & CEO Kurt Ritter, when welcoming investors and analysts to the group’s Radisson Blu Portman Hotel in London this morning.
“One important element is to put stronger emphasis on Revenue Generation, partly through achieving more synergies with our partner and brand owner Carlson”, Ritter continued.
Besides different revenue initiatives, the targeted approach includes growing the group’s fee-based hotel portfolio and cost savings. The company has also established a separate Asset Management function in order to optimize the existing portfolio of leased assets, to increase profitability and to reduce the leverage of the company.