Carlson Continues Fast-Paced Asian Expansion
The Carlson Rezidor Hotel Group announced Monday that it is continuing its fast-paced expansion in Asia after striking seven new hotel deals in India, China, and Indonesia during its second quarter—in addition to eight hotels that are already slated to open in India by the end of the year.
Carlson Rezidor Hotel Group is the result of a 2012 brand merger of Carlson Hotels, a subsidiary of Minnetonka-based Carlson, and its Brussels, Belgium-based partner The Rezidor Group, a hotel developer and operator. At the time of the merger, the two companies said that through combined initiatives, the Carlson Rezidor Hotel Group aimed to generate more than $400 million in additional revenue by 2015.
Prior to their merger, Carlson began investing in Rezidor in 2005, when it bought 25 percent of the company. It went on to purchase more of the European company until 2010 when it owned 50.03 percent of Rezidor’s shares.
The seven new hotels that were recently announced are expected to open anywhere between later this year and the third quarter of 2016. Four will be in India, one in Indonesia, and two in China—the two in China are the furthest along; both are projected to open later this year. This marks Carlson Rezidor’s first entry into the Indonesian market.
The hotel group has shown a strong interest in the Asia Pacific region—India in particularly—over the past few years. This latest announcement brings Carlson Rezidor’s Asia Pacific market to 91 hotels in operation—two-thirds of which are in India—and 65 in development.
“These seven new deals place us in good stead as we build our portfolio in Indonesia, grow our presence in China, and reinforce our leadership position in India,” Simon Barlow, president of Carlson Rezidor’s Asia Pacific sector, said in a statement. “We are continuing to take the lead in India and expect to open eight more new hotels in India before year end.”
Carlson Rezidor said it accounted for 25 percent of all the new hotel deals signed in India during the second quarter.
Twin Cities Business took an in-depth look at Carlson’s interest in India in 2010, when the hotel industry was already discussing the country’s underserved market and its merits as an investment ground.
According to a 2009 study, the country had an “alarmingly” low number of branded hotel rooms—approximately 48,500 rooms in all of India, compared to 66,000 in Manhattan alone.
Carlson Rezidor hasn’t shied away from expanding closer to home either. In March, the hotel group unveiled the new luxury Radisson Blu hotel next to Mall of America in Bloomington. The 13-story, 500-room hotel is one of 543 Carlson Rezidor hotels currently operating throughout the United States.
Carlson Rezidor currently has 1,071 hotels in operation—and an additional 229 hotels under development—in 100 different countries and territories. It plans to grow to about 1,500 in operation and under development by 2015.
Carlson, a hospitality and travel company, is Minnesota’s third-largest private company based on its annual revenue, which is estimated to be about $4.5 billion. Carlson’s brands include Radisson Blu, Radisson, Country Inns & Suites, Park Inn, Park Plaza, and Hotel Missoni.