Carlson set to execute Ambition 2015 goals

Washington, D.C.—It’s been nearly a year since Carlson unveiled its lofty Ambition 2015 goals to its franchisees, and now the company is focused on walking the talk.

“Execution” is the key word coming out of the brand’s annual global business conference, held this week in Washington, D.C.

Beyond that, Carlson announced several larger-scale plans—some already done and others just hinted about—for this year. The company renamed its Goldpoints Plus loyalty program to the more inclusive Club Carlson; it is rebranding the Park Inn name to be Park Inn by Radisson; it hinted at a large-scale, 600-room project in the works in New York City; and it hinted at brand development or acquisition plans to fill the company’s void in the luxury and economy segments.

Some highlights:

Goldpoints plus: Carlson unveiled a new name and vision for its rewards program. Now known as Club Carlson, the global loyalty program will offer members a free night after five paid nights. Points are redeemable at all Carlson-affiliated properties worldwide, including Club Med.

Radisson
• One year after announcing plans to segment the Radisson brand into higher-end Radisson Blu properties, the company has opened 5 Radisson Blus; 14 are under conversion to Blu; and the first three Radisson Blu properties in North America are in the works. “Radisson Blu in Chicago is opening this year in October,” said Thorsten Kirschke, global COO for Carlson. “We signed a new Radisson Blu at the Mall of America [in Minneapolis], and we have plans to convert the Radisson Plaza Hotel in Minneapolis into a Blu.”
Click here to read "Carlson premiers Radisson Blu in U.S."

• The brand is focusing on PIPs. Last year, 25 percent of the Radisson portfolio had committed to investing in PIPs; this year, Kirschke said, 80 percent of Radisson owners are committed to the physical and service upgrades Carlson rolled out last year.
Click here to read "Carlson commits more than $1 billion to Radisson growth"

• Attrition: Kirschke said 12 percent of Radisson flags left the brand in 2010 through attrition, and an addition 10- to 15-percent should leave within the next year.

Country Inns & Suites
• The brand continues to grow its footprint in India; in 2010, 5 CIS properties opened in India and 14 signed.

• Product refurbishment continues. Thirty percent of the portfolio is under renovation--more than others in its competitive set, Kirschke said.

• Traditionally a new-build brand, CIS saw its first conversion properties open in 2010.

• The brand's breakfast makeover continued. "CIS rolled out within less than a year a whole new 'Be Our Guest' breakfast deployment, focusing on choice, health and quality," Kirschke said. "It's a very contemporary approach, which is unique in its market here in North America."

Park Inn
• The midscale segment popular in Europe, Park Inn grew as a conversion brand in North America in 2010, and opened its first property in Mexico.

• To gain brand traction, Park Inn will now identify itself as Park Inn by Radisson worldwide.

Development snapshot
• Could a new brand(s) be in the works? "We will explore new brand opportunities in two segments we have not been in--luxury and economy," Kirschke said. "W

e want to have strong profiles, relevant purposeful brands. Here we see the opportunity to launch new product into the market as we continue our global growth."

• The numbers: In 2009, Carlson's global portfolio included 158,000 rooms in operation and 13,500 rooms signed. IN 2010, the portfolio included 163,000 rooms in operation and 15,400 signed. Sixty-six hotels opened in 2010.

• Today, 54 percent of the company's operating and pipeline properties are upscale, and 46 percent are midscale.

• 23 percent of the global pipeline is in North America, and 77 percent is outside North America. Of those, 36 percent of the global pipeline is in developing markets, and 64 percent is in emerging markets.