Mid-East RevPAR climbs for Carlson Rezidor in Q3 2014

The Carlson Rezidor Hotel Group's performance in the Middle East and Africa during Q3 2014 is showing signs of positivity, posting growth in revenue per available room (RevPAR) and earnings. 

Hotelier Middle East reported that the operator's RevPAR was up 9.5 percent year-over-year in the region, reaching $79.61. This growth is attributed to similar gains in occupancy, which is also up 9.5 percent, and room rates that have stabilized (up 0.1 percent).

Additionally, the company's earnings before interest, tax, depreciation and amortisation (EBITDA) in the region were up 8.1 percent to 5.07 million, while the EBITDA margin was up 4.1 points to 69 percent.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

"Rezidor continues to grow on an asset light basis, signing over 1,300 rooms in the quarter," Wolfgang Neumann, preident & CEO of the Rezidor Hotel Group, told Hotelier Middle East."The pipeline of projects has over 19,000 rooms over a broad geographic area."

According to Arabian Business, the company's RevPAR gains were helped along by increased performance in Saudi Arabia (up 9.3 percent) and South Africa (13 percent). Globally, RevPAR was up 3.5 percent, while EBITDA rose from $28.90 million to $33.46 million.

Carlson Rezidor also recently signed a long-term development agreement with the Al Hokair Group, a Saudi hospitality and entertainment group. As part of the deal, Carlson Rezidor will operate approximately 30 new and existing hotels, resorts and serviced apartments under its Radisson Blu and Park Inn by Radisson brands.

Recently, Carlson Rezidor began plans to extend its reach to Belarus with a Radisson Blu property. The 200-room hotel is slated to open in the second quarter of 2017. Earlier this month, the company revealed it is launching its Carlson Red brand in Asia with the 300-room Radisson Red Shenyang Hunnan in Northeast China.

Suggested Articles

Should all new hotels open as scheduled in the next two years, Europe's current count of 2,885,630 guestrooms will grow 7 percent.

The Meliá Varadero Internacional Hotel's first rooms opened in February, and new services and facilities have soft-opened since then.

A new report shows an uptick in the value of mixed-use property deals in H1.