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.
"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.