Chairman statement

Effective corporate governance is important in both economic upswings and downturns. Distinct areas of responsibilities and decision processes contribute to generating openness and transparency, enabling owners and other stakeholders to monitor the company’s performance.

The most recent years have been turbulent and business conditions have changed for players in the hotel industry. The Board of Directors is responsible for monitoring the strategies that indicate the company’s approach, and for evaluating and responding rapidly to changes in the company’s business environment. Consequently, efficient Board work and a committed Board of Directors are key elements of successful corporate governance.

Rezidor’s Board of Directors has, like many others, worked more intensively through the financial uncertainty of the past years. However, the financial crisis was followed by a recovery that was even stronger than anticipated. Naturally, Rezidor benefited from this positive development, while we and many others were amazed by the strength of the recovery.

During the upswing experienced in 2010, we have guarded our cash flow and secured the company’s liquidity, as well as focused on profitability improvements and securing the cost savings achieved. We will continue to focus on profitable, asset-light growth, meaning growth through management and franchise agreements.

One strategic step is that we must work on harmonising our brands jointly with Carlson, our principal owner. Carlson, with its hotel owners, is planning to invest up to USD 1.5 billion in its Radisson portfolio and this will improve Rezidor’s potential to attract more international guests.

The listing agreement, the Code and the company’s governance policies are the instruments that exist to formally ensure the functionality of our independent platform. As in the preceding year, we have again received external confirmation that this platform works. According to consulting company HVS, in its most recent European Corporate Governance Report, Rezidor is at the absolute top among European hotel companies in terms of corporate governance.

During the year, structural measures were also implemented, for example, in the form of the sale of the Regent brand. The company’s focus is now on three core brands: Radisson Blu, Park Inn by Radisson and Hotel Missoni.
Rezidor has excellent potential to capitalise on positive trends, although it is vital to remain cautious. Several countries have budgetary crises, which may directly and indirectly impact companies like Rezidor. Based on this and the fact that Rezidor’s 2010 earnings after tax are negative, the Board of Directors has proposed that there be no dividend paid for the 2010 financial year.

As I have decided to step down from the position as Chairman of Rezidor, I can say that I have been on an exciting journey with the company. Rezidor has developed into a stable listed company that is increasingly recognised and able to defend its position. Compared with other companies in the industry, we are regarded as an attractive investment. We are considered one of the major players, although we are relatively small when it comes to actual size. And above all, we continuously receive confirmation that we are doing the right things, in the form of satisfied customers and employees, as well as continued strong growth.

Urban Jansson, Chairman