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Rezidor continues to grow

I am proud to report that 2010 was our third consecutive record year in terms of room openings. We have also seen strong recovery in most markets after the global downturn in 2009 and are now well equipped to take on the new opportunities that lie ahead.

"2010 was our third consecutive record year in terms of room openings."

- Kurt Ritter, President and CEO

Let it Grow!

Contract types

In operation

Under development

Our growth

Organic growth has been a key pillar of our strategy. We have a pipeline of ca 21,500 rooms due to open within the next three to four years. This is one of the strongest in the industry and represents 32% of the current number of rooms in operation, compared with an industry average of ca 20%. The European pipelines of Radisson Blu and Park Inn by Radisson are the largest in their respective categories. Over 95% of the pipeline consists of fee-based managed and franchised contracts generating a higher profit margin than the existing portfolio. Once the rooms in the pipeline have opened, this will improve the Group’s EBITDA margin by 2–2.5% pts, supporting the 12% target over a business cycle.

RevPAR like-for-like, %

All customer segments noted an increase in volume compared to 2009. As a result occupancy grew by 6.3%. Combined with a marginal room rate decline of 1.6% this resulted in a like-for-like RevPAR growth of 4.6%. The strongest development was noted in Rest of Western Europe (+8.3%).

EBITDAR
MARGIN, %

The EBITDAR margin improved by 130 bps to 32.3% compared to last year. This is partly as a result of the measures initiated in 2008/2009 through our ambitious cost-saving programme and the lower cost base established.

EBITDA
MARGIN, %

The EBITDA margin improved by 330 bps to 4.0% compared to 2009 due to the increased EBITDAR margin, lower shortfall guarantees and the fixed-lease structure in Rest of Western Europe.

Responsible Business

Taking responsibility for the health and safety of employees and guests.
Respecting social and ethical issues in the company, as well as in the community.
Reducing our negative impact on the environment.