Radisson is a world-renowned hotel brand that has been operating for more than eight decades. The brand has over 1,100 hotels globally and a vast following of loyal customers. However, in recent years, the company has undergone significant changes since its split in 2018. The split has raised questions among many consumers, employees, and industry stakeholders as to why Radisson had to undergo such a transformation. In this blog post, we will explore the reasons behind Radisson’s split and its impact on the hotel industry.
The Background Story
Radisson Hospitality AB has been a subsidiary of the Chinese hospitality company, Jin Jiang International Holdings, since its acquisition in 2018. After the acquisition, the management of Radisson Hospitality AB went through a restructuring, which led to the formation of two distinct companies: Radisson Hotel Group and Radisson Hospitality Inc.
Radisson Hotel Group is based in Brussels, Belgium, and oversees the operation of the Radisson brand globally. In contrast, Radisson Hospitality Inc. is a US-based company that manages Radisson hotels in North and South America. The formation of these two entities meant that Radisson is now a divided brand as opposed to a single entity controlled by a single company.
The Reasons Behind Radisson’s Split
The main reason behind Radisson’s split was not necessarily by choice. Still, in a bid to expand its footprint globally, Jin Jiang International Holdings, the Chinese firm that owns Radisson, had acquired the French hospitality group, AccorHotels. Acquisition of AccorHotels came with operational complexity in the US, which made it difficult for both Radisson and Jin Jiang to be in compliance with the Committee on Foreign Investment in the US (CFIUS).
CFIUS is a US government regulatory body that has the power to block foreign investments that raise national security concerns. In 2016, the agency barred the Chinese conglomerate, Anbang Insurance Group, from purchasing the US hotel chain, Starwood Hotels & Resorts, due to concerns over national security.
Therefore, to comply with CFIUS, the Chinese owners of the Radisson brand had to undergo a restructuring and create the two entities we now know as Radisson Hotel Group and Radisson Hospitality Inc.
The Impact of the Split on Radisson’s Operations
The split has resulted in a different approach to operations in different regions of Radisson hotels. The operational complexities of global expansion have led to more significant autonomy for the individual hotel owners and management in different regions of the world. Regional teams have been given more leeway to make decisions about operations and management practices, leading to variances in the quality and management of Radisson hotels globally.
The split has also come with challenges such as organizational realignment, unclear brand positioning and market penetration, fractured internal communication, and employee uncertainty. The split went live when Covid-19 wreaked havoc on the travel and tourism industry, further disrupting the sector, and adding to the challenges experiencing by Radisson and its employees.
Where is Radisson going from here?
Expanding a brand globally is challenging, and establishing brand positioning and identity is a complex exercise. With the split, Radisson has an opportunity to build and grow stronger brands in both Radisson Hotel Group and Radisson Hospitality Inc. As the hotel industry is set to rebound from the impacts of Covid-19, Radisson has to reestablish itself as a leading brand in a fiercely competitive industry.
Radisson can leverage the operational autonomy afforded to its regional teams to foster a culture of innovation, diversity and local market penetration, tailored to the needs of consumers and the different regions of the world. Radisson should take this opportunity to refine its brand positioning, strengthen its global presence and improve the quality and consistency of its services.
Conclusion
The split of the Radisson brand was not necessarily a strategic decision by the company, but rather a necessary response to challenges posed by US regulators. However, the division of Radisson into two entities presents an opportunity for Radisson to define and refine its brand positioning, develop a stronger global presence and foster innovation and diversity in its approach to the hospitality industry. Ultimately, it is the consumers who will benefit from the split, as Radisson can now leverage more operational autonomy to offer tailored experiences across its global network of hotels.
FAQ
What happened to Radisson Rewards program?
Radisson Hotels Americas, previously known as Radisson Hotel Group, has undergone some major changes that have impacted its loyalty program, Radisson Rewards. This shift was caused by the acquisition of Radisson by Choice Hotels International, which resulted in a migration of the Radisson Rewards membership base to the Choice Privileges program. This means that Radisson Rewards members were automatically enrolled in the Choice Privileges program and could start earning and redeeming points across all Choice Hotels brands, including Comfort Inn, Quality Inn, Clarion, Cambria, and more.
Despite this change, Radisson Rewards members have been given assurance that their points and status will be preserved. Members can still access their accounts and view their point balances, and they can continue to earn and redeem points for hotel stays, travel, and other rewards. However, the rewards program no longer operates under the Radisson brand and has shifted to Choice Privileges.
While the merger of Radisson and Choice Hotels has resulted in some changes, it has also opened up new opportunities for frequent travelers. Members of the Choice Privileges program have access to more hotels in more locations, giving them a greater range of options for earning and redeeming points. Additionally, Choice Privileges members earn points more quickly and have access to exclusive member rates, bonus points promotions, and other perks.
The shift of Radisson Rewards to the Choice Privileges program has allowed loyal members to continue earning and redeeming rewards while also opening up new possibilities for future travel. Radisson Hotels Americas continues to provide guests with high-quality accommodations and services, and the merger with Choice Hotels has only strengthened the company’s ability to serve travelers around the world.
Did Radisson get bought out?
Yes, Radisson has been bought out by Choice Hotels International. On August 11, 2022, Choice Hotels acquired the Radisson Hotels Americas brand, which includes nine hotel brands and approximately 67,000 rooms across the United States, Canada, Latin America, and the Caribbean. This acquisition is a significant landmark in the hospitality industry and has expanded Choice Hotels’ presence in the Americas. With the acquisition, Choice Hotels has become one of the world’s largest hotel companies, with over 7,100 hotels in more than 50 countries. Despite the acquisition, Radisson-branded hotels outside the Americas continue to operate under Radisson Hospitality AB, which is not affiliated with Choice Hotels. the acquisition of Radisson by Choice Hotels demonstrates the company’s commitment to growth and expansion in the hospitality industry and its ability to provide customers with more diverse accommodation options.
What is the new name for Radisson?
The new name for Radisson is Radisson Blu. This rebranding happened in 2009, when Radisson SAS, the hotel chain’s former name, decided to change its name and visual identity to Radisson Blu. The rebranding process was part of a research project that aimed to find a new brand identity and image, including a logo, color scheme, and brand name.
The name “Blu” was chosen because it was seen as a modern and catchy word that could easily convey the new brand’s message to its target audience. The research showed that the SAS blue box, which was the previous logo, was too well-known and did not represent the company’s image as well as it could. For that reason, it was time to find a new name and visual identity that would show the new direction of the company.
The name change to Radisson Blu did not only affect the company’s name but also its branding and image. The new logo’s design was created using modern and sleek lines, with a blue and silver color palette that aimed to show the brand’s sophistication and class. The brand name, Radisson Blu, was launched to the public in March 2009, and the hotel chain has used it ever since.
The new name for Radisson is Radisson Blu, which was chosen as part of a research project aimed at finding a new visual identity for the hotel chain that better reflected its image and values. This rebranding has helped to reaffirm the hotel chain’s position in the market by showing that it is a modern and classy brand that values quality and customer satisfaction.
Is Radisson owned by Marriott?
No, Radisson is not owned by Marriott. Radisson is a brand of hotels that is owned by Radisson Hospitality Inc., which is a subsidiary of Radisson Hospitality AB, a Swedish company. On the other hand, Marriott International Inc. is a leading hospitality company that owns and operates several hotel brands, including Marriott, Courtyard, Sheraton, Westin, and Ritz Carlton, among others.
Although Marriott and Radisson are both well-known hotel brands, they are owned by different companies and have different management structures. Marriott is headquartered in Bethesda, Maryland, USA, while Radisson Hospitality AB is headquartered in Solna, Sweden. Marriott operates more than 7,000 properties in 131 countries, while Radisson has about 1,400 hotels in 115 countries.
However, it is worth noting that Radisson Hospitality AB was previously owned by the Carlson Companies, a privately held international travel and hospitality conglomerate based in the United States. Carlson Companies owned several brands and subsidiaries, including Radisson Hotels Worldwide, Country Inns & Suites by Carlson, Park Inn, and Park Plaza. In 2016, Carlson sold Radisson Hospitality AB to a Chinese consortium led by the Jin Jiang International Holdings Co. Ltd., a Shanghai-based hotel group.
Radisson is not owned by Marriott. It is a brand of hotels that is owned by Radisson Hospitality Inc., which is a subsidiary of Radisson Hospitality AB, a Swedish company. Marriott International operates its own hotel brands, such as Marriott, Courtyard, Sheraton, and Westin, among others. While there was a connection between Radisson and Carlson Companies in the past, the brand is now owned by a Chinese consortium and operates independently from Marriott.
What is the biggest Radisson hotel in the world?
The biggest Radisson hotel in the world is Radisson Blu Hotel, Berlin. This hotel is located in Berlin, the capital city of Germany. The hotel features 1,125 rooms and suites, which make it the largest hotel in the Radisson chain.
The Radisson Blu Hotel, Berlin is situated in the heart of the city and is easily accessible from all parts of the city. It features a wide range of modern amenities that cater to the needs of both business and leisure travelers. The hotel has 15 meeting rooms, which makes it ideal for hosting large meetings and conferences.
The hotel’s Grand Ballroom is the largest of its kind in Berlin, with a seating capacity of 1,800 people. The hotel’s restaurants and bars offer a wide range of international cuisines and drinks, including German, Asian, and Mediterranean. The hotel also has a fitness center, sauna, and indoor pool for guests who want to stay active during their stay.
With its size and location, the Radisson Blu Hotel, Berlin is a popular choice among travelers who are looking for a comfortable and convenient stay in the heart of the city. The hotel’s friendly and helpful staff ensures that guests have a pleasant and memorable experience during their stay. the Radisson Blu Hotel, Berlin is a great option for anyone who is looking for a luxurious and spacious hotel in Berlin.
Did Radisson and Choice merge?
Yes, Radisson and Choice Hotels merged in August 2022. Choice Hotels International purchased Radisson Hotels Americas in a deal that allowed the company to expand its global footprint and offer more options to its customers. The acquisition follows a trend in the hospitality industry, where major brands are consolidating to improve economies of scale and enhance their competitive position in the market.
The acquisition of Radisson by Choice Hotels has given the latter access to an additional portfolio of 1,400 hotels, which will enable Choice Hotels to further strengthen its position as one of the leading hotel franchisors in the world. The merger has also expanded Choice Hotels’ reach to 46 countries, greatly enhancing its international presence and making it an even more attractive option for travelers.
As part of the merger deal, Radisson Hotels Americas will become a subsidiary of Choice Hotels, retaining its brand name but operating under a new ownership structure. Choice Hotels will now harness the expertise and experience of the Radisson team to enhance its operations and offer even better customer experiences.
The merger is set to bring substantial benefits to customers of both Radisson and Choice Hotels. Customers of Choice Hotels can now enjoy access to the Radisson Rewards loyalty program, which offers competitive benefits to frequent guests. Similarly, Radisson customers can now earn and redeem points at any of Choice Hotels’ global network of hotels, and vice versa.
The merger between Radisson and Choice Hotels represents an exciting chapter in the evolution of both brands. By combining their strengths and resources, Choice Hotels and Radisson are well-positioned to offer world-class hotel experiences to travelers around the world, and drive innovation and growth in the hotel industry.
Who owns Best Western?
Best Western is a hotel brand that is globally recognized for its broad range of hotel options available to travelers. However, the question of who owns Best Western can be a bit tricky to answer. This is because Best Western is part of a hotel brand management organization known as BWH Hotel Group.
BWH Hotels serves as the umbrella parent organization to WorldHotels, Best Western Hotels & Resorts, and SureStay Hotels. Best Western Hotels & Resorts is the largest of these brands, with over 4,700 independently owned and operated hotels located in over 100 countries around the world.
It is worth noting that while Best Western is owned and operated by BWH Hotel Group, each Best Western hotel is an independently owned and operated franchise. This means that although the brand is consistent across all of its locations, each hotel is unique in its design, amenities, and services.
The founder of Best Western, M.K. Guertin, established the brand in 1946 as an association of roadside motels that would provide a sense of community and support to independent motel owners. Over the years, the brand grew rapidly and maintained its focus on providing affordable, comfortable lodging options to travelers.
In 2015, Best Western launched a new brand identity and logo, signaling its renewed focus on providing contemporary accommodations. The brand has continued to innovate and adapt to the changing demands of travelers, becoming the first hotel brand to offer a mobile app in 2010 and introducing its “We Care Clean” program in 2020 in response to the COVID-19 pandemic.
While Best Western is owned and operated by BWH Hotels, each of its hotels is independently owned and operated. The brand has a rich history of providing travelers with comfortable and affordable lodging options and continues to innovate to meet the changing demands of travelers.