April 20, 2010
The Rezidor Hotel Group, one of the fastest growing hotel companies worldwide, announces a management agreement with the Norwegian real estate developer Linstow for 10 Reval Hotels in the Baltics (Latvia, Estonia & Lithuania) and in Russia. The agreement between Rezidor and Linstow will come into effect on June 1, 2010 and includes 3 hotels in Riga, 2 hotels in Tallinn, 2 hotels in Vilnius, and 1 hotel in each Kaunas, Klaipeda and St. Petersburg - adding a total of 2,367 rooms to Rezidor's portfolio. 6 hotels will be rebranded as Radisson Blu and 4 as Park Inn.
"We are delighted and proud that Linstow, Reval Hotels owner, has chosen Rezidor as a business partner", comments Kurt Ritter, President & CEO of Rezidor. "Reval Hotels is the leading hotel chain in the Baltics. This portfolio agreement gives Rezidor, which is the number one among the international hotel operators in Russia, a strong market position in the Baltics, too. We will be able to substantially strengthen our position in the key markets of Riga, Tallinn and Vilnius, where we already are present with our upper upscale brand Radisson Blu and a total of 760 rooms", continues Ritter.
Rezidor will open a new supervisory and support Regional Office in Riga, while Linstow will continue to own and develop the properties. All 1,200 hotel employees will remain in their present positions, and there will be no change in terms of employment, benefits or employee relations. Guests will be benefiting from the same flexible pricing as before. Corporate accounts will maintain the same contracted rates as signed, while Reval Hotels First Client members will have an opportunity to enjoy global benefits by joining Rezidor's loyalty program "goldpointsplus".
"After developing and building up the Reval Hotels chain in the Baltics, Linstow now wishes to focus on its core role as a real estate developer and real estate investor. As an internationally renowned hotel player in expansion, Rezidor has a very strong sales organization and presence with well known brands in all markets outside the Baltics and St. Petersburg that are important to bring new customers to our hotels. The management deal therefore assures further revenue growth for our hotels in both the Baltics and Russia. This will happen through, among other things, more effective marketing of the hotels," says Per Mortensen, CEO of Linstow.
The agreement between Rezidor and Linstow, subject to regulatory approval, covers the following properties: