Enjoy a 15% discount on all purchases until the 31st of March 2023 using the promo code EOFWEB22 at check out!

Services Our expert insights reveal the key consumer and industry trends shaping global services, including best-in-class innovations in technology, customer experience and sustainability to thrive in dynamic times.

Could Carlson Rezidor Hotel Group be the Next Big “M&A” Target?

Wouter Geerts Profile Picture
Wouter Geerts Bio

Consolidation is the current buzzword in the global hotel industry, and it is not getting old any time soon. At the end of last year, all the headlines were taken by the Marriott-Starwood deal, and the acquisition of FRHI Holdings by Accor. At the start of 2016, more merger and acquisition rumours are doing the rounds, though, as the Wall Street Journal recently reported that Carlson Cos is looking for strategic alternatives, which could include a possible sale or merger of its hotel company Carlson Rezidor Hotel Group, which includes the Radisson brand.

The Rezidor Hotel Group became a public company in 2006, when it was sold by its owner SAS Airlines. In 2010, Carlson Cos became the majority shareholder, owning 50.1% of shares. Initially, the two companies maintained multiple franchise agreements that allowed Rezidor to operate the Radisson, Park Inn and Country Inns brands in Europe, the Middle East and Africa. However, two years later the two companies launched a strategic partnership in order to focus on expansion and revenue generation, forming the Carlson Rezidor Hotel Group.

Despite its global portfolio and strong brands, Carlson has struggled to register strong organic growth, and has been at par or slightly below average market growth since 2011. This might be one of the most important reasons for the company to weigh up its options and consider a merger or acquisition to improve its performance in the future.

The backing of a strong hotel player might also provide the needed push for the Quorvus Collection and Radisson Red brands, which have seen slow pick-up after their announcements in 2014. Both brands are technology driven and cater to the Millennial traveller. With Carlson’s competitors having introduced similar concepts, including Marriott’s Moxy Hotels, Starwood’s Aloft and, most recently, Hilton’s Tru Hotels, Carlson will need to have a clear strategic direction for its youngest brands to be successful.


Interested in more insights? Subscribe to our content

Latest Insights

Loyalty and the New Normal

Nadejda Popova 16 March 2023

Shop Our Reports

Car Rental: Top Six Industry Trends

This report examines the global car rental industry, providing analysis on market sizes, brand and company shares, growth trends over the review period and…

View Report

Financial Cards and Payments in Western Europe

Electronic direct/ACH and card payments continue to take share from paper transactions in Western Europe, while mobile m-commerce continues to be the most…

View Report

Financial Cards and Payments in Latin America

Although it is not the case in Brazil, the region’s biggest market, cash is still the leading payment method in many Latin American countries. However,…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More