Insight THE PULSE OF RADISSON HOTEL GROUP ASIA PACIFIC OWNERS' NEWSLETTER
Radisson Blu Resort Wetland Park, Wuxi
Contents 04 president's
08 driving higher
12 exciting new
Growing from strength to strength
Marketing campaigns and initiatives
Operational updates across China
05 upward trends
09 elevating our brands 13 breaking new
Thriving in the growing Asian hospitality business
Rebranding and increased communications efforts
opening
revenues
Radisson Blu Hotel Chennai
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THE PULSE OF RADISSON HOTEL GROUP
& creating impact
initiatives
ground
Accomplishments in South East Asia & Pacific
15 redefining
hospitality
Creating owners' value and uplifting our brands
19 openings
23 media coverage
Exciting new properties that opened in 2018
2018 publicity results and campaign efforts
18 extending our reach 21 signings
25 hotel portfolio
Notable expansions across Asia Pacific
Radisson Hotel Group's global presence
New hotels and destinations in the coming years
ASIA PACIFIC OWNERS’ NEWSLETTER
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Radisson Blu Bali Uluwatu
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The Future is Bright GROWING FROM STRENGTH TO STRENGTH WITH THE 5-YEAR PLAN Katerina Giannouka President, Asia Pacific
W
e are excited to bring you our first Owners’ Newsletter, a new biannual publication dedicated to Radisson Hotel Group’s latest developments and achievements. In Asia Pacific, we have entered 2019 with renewed strength and a heightened sense of optimism. The first year of “Destination 2022”, our five-year transformation strategy, was highly successful and included 26 new signings in Asia Pacific alone. Moving forward, we will focus on driving operational excellence, enhancing brand standards, rolling out new tools and adding value to you, our esteemed owners. We now enter Year Two as part of Jin Jiang International, one of the world’s leading travel and hospitality companies. This marks yet another incredible milestone in our company’s history and one that
I am confident will elevate Radisson Hotel Group to a new level. As the fifth largest hotel group in the world with more than 100 million loyalty program members, Jin Jiang will position us as a global leader in the hospitality industry. Overall, this vibrant region continues to benefit from rising business and leisure travel, driven by strong intra-regional demand. The feeder markets of China and India are changing the tourism landscape, and this will continue for the foreseeable future. China is already the world’s largest outbound market and India is enjoying sustained growth. As affluence continues to rise and these vast Asian populations start traveling in greater numbers, the impact on regional tourism could be unprecedented. It is no coincidence therefore, that
Radisson Hotel Group’s Asia Pacific expansion strategy is focused on these key markets: India, China and other vibrant destinations such as Indonesia, Vietnam, Thailand and the Philippines. This focus will continue in 2019 as we introduce even more of our innovative brands into exciting new markets. Challenges remain of course, but with buoyant regional economies, expanding air links, rising prosperity and lower barriers to travel, we fully expect Asia Pacific’s upward trajectory to continue. Radisson Hotel Group is perfectly poised to capitalize on these bright market conditions.
Katerina Giannouka President, Asia Pacific
ASIA PACIFIC OWNERS’ NEWSLETTER
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Upward Trends ADAPTING TO THE GROWING ASIAN ECONOMY
According to the International Monetary Fund (IMF), Asia remains “very much at the forefront of the global economy�, in terms of growth. The Asian economy is projected to expand by 5.6% in 2018 and 2019. This will continue to boost cross-border business and leisure travel throughout the region.
Radisson Blu Hotel Liuzhou
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he performance of the hotel industry in Asia Pacific continued to improve in 2018, driven by rising demand, especially in terms of intra-regional travel between Asian countries.
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Increasing room supply is restricting occupancy growth, but regional average daily rate (ADR) continues to climb, contributing to steady growth in terms of revenue per available room (RevPAR).
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HOTEL PERFORMANCE All three key performance metrics in the Asia Pacific hotel sector improved in 2018. Occupancy growth was subdued at +0.2%, but region-wide occupancy is now above 70%. ADR experienced faster growth at +1.0%, and RevPAR climbed +1.2%. South East Asia (+2.4%) achieved the highest RevPAR growth in 2018, followed by Australia & Oceania (+1.6%), North East Asia (+1.3%), and Central & South Asia (+0.8%) according to STR, October 2018.
HOTEL DEVELOPMENT The Asia Pacific region continues to experience an influx of new hotel room supply. There were 1,719 hotels comprising 387,195 rooms in construction across the region in January 2019, which marks a strong 31.4% year-on-year increase. A further 359,571 rooms were in the planning stages. China is leading the way with 204,295 rooms in construction, which equates to 8.1% of its existing room supply. Other strong regional markets include Japan (38,155 rooms in construction, 6.1% of its existing supply), Vietnam (23,359, 24.6%), Indonesia (21,226, 5.9%) and India (18,713, 6.6%) according to STR, January 2019. INTERNATIONAL ARRIVALS TO ASIA PACIFIC DESTINATIONS International arrivals to destinations in Asia Pacific continued to increase in 2018. According to data from the UNWTO World Tourism Barometer, inbound travel increased 6% to 343 million arrivals in the full-year. This is in line with the global growth rate of +6%, and worldwide tourism arrivals crossed 1.4 billion mark in 2018, two years ahead of the UN’s forecast. South East Asia had the strongest results, welcoming 7% more international visitors, followed by North East Asia (+6%), South Asia (+5%) and Oceania (+3%). In terms of outbound travel, India and South Korea drove growth in Asia Pacific, while the world’s top source market, China, reported similar spending as in the same period last year. Around 80% of outbound travel from Asian countries is to other Asia destinations. The UNWTO forecasts global international arrivals to grow at a more modest rate 3% to 4% in 2019.
On the Rise
01 asia pacific economy The Asian economy is projected to expand by 5.6% in 2018 and 2019.
02 asia pacific hotel performance January to December 2018
OCCUPANCY
ADR
REVPAR
70.6%
$106.99
$75.53
+ 0.2%
+ 1.0%
+ 1.2%
03 asia pacific hotel development January 2019
ASIA PACIFIC
RADISSON HOTEL GROUP
88 Hotels 1,719 Hotels 387,195 Rooms 14,333 Rooms Under construction
Under construction
ASIA PACIFIC OWNERS’ NEWSLETTER
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Airport advertising in Phu Quoc, Vietnam
Airport advertising in New Delhi, India
"Family Moments" Campaign
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THE PULSE OF RADISSON HOTEL GROUP
Driving Higher Revenue
Scott Bryce Vice President, Finance and Information Technology, Asia Pacific
INNOVATIVE MARKETING CAMPAIGNS AND INITIATIVES
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018 was another highly productive year for our commercial sales team. Having restructured our team to provide regional level leadership in China, India and Southeast Asia & Pacific, we achieved a 17% jump in overall business and a 15% increase in global business transient accounts. We ended 2018 having handled 1,663 MICE groups, with 80% of these contributed to our hotels in Asia Pacific. Our sales teams were very active in 2018, attending 11 trade shows in Asia Pacific and generating business opportunities worth over US$5M. We also took part in 41 sales blitzes in 12 key feeder markets with 40 of our Asia Pacific hotels. Our India Roadshow featured a new app which enabled hotels and buyers to connect with each other. These three events generated business opportunities worth over US$2.5 million for 30 hotels. Meanwhile, our presence at the GBTA events in India also put us in direct contact with 500 delegates from top corporate global accounts. 2018 saw a shift towards intraregional business; our Asia Pacific hotels experienced a 13% rise
Achievements in sales from within the region. Our corporate channels are also strengthening; GDS bookings through TMCs soared 23.4%. Finally, our business was enhanced by our upgrade to the Salesforce Lightning and Salesforce Community CRM systems, with full training provided to our teams. Several campaigns were ran in 2018 including, Family Moments, Dream Deals and Get More, a Meetings & Events promotion to drive greater benefits for our guests and commercial value to our hotels. Radisson Rewards performed well in Asia Pacific, with hotels enrolling more than 300K new members in 2018. I am also delighted to report that Radisson Rewards won several major awards in 2018, including “Best Program Innovation” and “Best Overall Promotion” at the Frequent Traveler Awards; “Best Travel Rewards” by U.S. News & World Report; “Best Family-Friendly Frequent-Stay Program” at the Wherever Family Awards; and “Favorite Hotel Rewards Program in the World” at the Trazee Travel Awards.
01 commercial success Increased sales generated for APAC hotels by 17% vs LY Represented Radisson Hotel Group at 11 tradeshows generating business of over $5M
02 campaign marketing 4 digital campaigns in 2018 1:9 ROMI (Return On Marketing Investment) on digital campaigns (i.e. for every $1 invested, $9 returned)
02 loyalty program
– Radisson Rewards
300K new members enrolled in Asia Pacific with $59M of associated room revenue Radisson Rewards members spend 25% more than nonmembers ASIA PACIFIC OWNERS’ NEWSLETTER
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Elevating our Brands & Creating Impact REDEFINING THE BRAND AND STRENGTHENING COMMUNICATIONS EFFORTS BRANDS 2018 was a landmark year for our brands, with our global rebrand to other major initiatives helping to enhance our identity and bring fresh benefits to our owners. In line with our fiveyear vision, we are successfully leveraging the powerful brand equity of Radisson — one of the most famous names in the industry. Under this strategy, we have already revitalized several global brands with new names, standards and design elements, to achieve greater product consistency and economies of scale. Furthermore, by enhancing our quality assurance we are continuously raising the standard of our hotels. Looking ahead, Radisson Hotel Group will continue to deliver exciting new brand architecture, fresh tools and systems. Our value add to owners include benefits such as a 52 per cent yearly fee reduction on LRA by Deloitte, our Quality Audit tool, the introduction of ReviewPro, our company’s new global hotel reputation management tool and a refreshed, concise global guest satisfaction survey. All of these exciting changes are underway and we will continue to introduce innovative new ways of boosting our brand equity and hotel performance in future, for the benefit of our guests, owners and all stakeholders. Mar 2019 Launch of brand standards 09
PR, COMMUNICATIONS & SOCIAL MEDIA Great strides are being made in the area of publicity, as we amplify our brands and hotels across multiple channels as part of a robust strategy. Our PR & Communications team achieved PR value of over US$11 million in 2018, a 27.5% year-on-year jump. A strategic focus on communications in China included several key initiatives, such as a senior leadership China media briefing, familiarization trips and the launch of WeChat and Weibo channels. This has already delivered great results — we achieved a 152% increase in page views for WeChat and 231% for Weibo! We also hosted top Chinese media at the new Radisson Blu Resort Phu Quoc, to mark the brand’s entry into a new market. Harnessing the power of social media, a new “round robin” strategy was developed to push our Asia Pacific hotels into driving rich and strong content to our global social media channels (corporate LinkedIn, RHG Instagram accounts and individual brand channels). We also achieved significant results from our global Radisson Rewards social media campaign in India, garnering engagement of over 38,000 comments and likes. We expect to improve our share of voice in the market and elevate our brands further in 2019 and beyond.
Q2, 2019 Implementation of new standards
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Camilla Chiam Vice President, PR, Communications and Brands, Asia Pacific
Q3 - Q4, 2019 Brand audits and quality assurance
Key Milestones 01 brand equity Leveraging the powerful Radisson name Introduced and launched as part of the new brand architecture in March 2018 Revitalized brand collateral visuals and standards
Launched with a new brand identity and sharper positioning
Repositioned the brand with a new brand identity, design and standards Launched a new brand identity and repositioned the brand design elements Revitalized the brand identity with a more stated brand positioning
Revitalized the brand identity with new standards ASIA PACIFIC OWNERS’ NEWSLETTER
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Exciting new breakfast concept
China Breakfast project
Opening of Radisson Zhengzhou Huiji
Opening of Radisson Ningbo Beilun
Opening of Radisson Suzhou
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THE PULSE OF RADISSON HOTEL GROUP
Gary Ye Vice President, Operations, China
Exciting New Initiatives
R
adisson Hotel Group has successfully implemented a series of exciting new initiatives in China in 2018. The China Breakfast Project included the rollout of an innovative new breakfast concept at our hotels, reflecting a generational shift towards more adventurous breakfast choices. We have introduced authentic local items and live food stations to improve the ambience and guest experience. Using locally sourced ingredients have also helped reduce food costs. Feedback from this project has been very positive. With hotel performance reviews being conducted for almost all our managed hotels in China, there was a key focus on managing costs. The gross operating profit (GOP) of our China portfolio has
Boosting GOP and Guest Experience
OPERATIONAL UPDATES FROM HOTELS ACROSS CHINA
improved by 2%. In ensuring operational efficiency and effectiveness, more operational tools are being developed including a standardized Revenue Meeting Pack (Revenue Optimization), HR Organizational Charts (Streamlined Manning Guide and Managed Payroll Cost), Career Development Plan templates (Talent Development and Retention), and Monthly Operations Meeting Packs (Guest Experience Enhancement). 2018 also marked new hotels coming into operation, we are delighted to welcome new hotels to the China portfolio, including Radisson Suzhou, Radisson Ningbo Beilun and Radisson Blu Zhengzhou Huiji. Our growth continues to accelerate as we strengthen our presence in China’s fast-growing second-tier cities.
03 GOP increase
01 managing costs New innovative breakfast concept where guests can experience the locale through food
02 exciting openings in China Radisson Suzhou, Radisson Ningbo Beilun and Radisson Blu Zhengzhou Huiji
GOP IMPROVED
2% ASIA PACIFIC OWNERS’ NEWSLETTER
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Breaking New Ground Andre de Jong Vice President, Operations, South East Asia & Pacific
ACCOMPLISHMENTS AND GROWING OUR RESORTS' FOOTPRINT IN SOUTH EAST ASIA AND PACIFIC
R
adisson Hotel Group continues to expand, improve and fine-tune our hotel operations in 2018. Key successes included the expansion of our operations into Vietnam, with the launch of Radisson Blu Resort Phu Quoc. This is an exciting emerging market with a huge amount of potential, and we are delighted to have established an operational presence in the country. In Indonesia, Radisson Blu Bali Uluwatu and Radisson Medan transitioned smoothly from their preopening to opening phases and have already started delivering exceptional guest experiences in two very different markets. Another Indonesian success story came in Batam, where Radisson Golf & Convention Center Batam became the first rebranded Radisson
hotel in Asia Pacific. The hotel also hosted our 2018 Asia Pacific Business Conference, which was attended by more than 200 delegates and concluded with the annual Asia Pacific Awards. Reflecting Radisson Hotel Group’s focus on safety and security, we were delighted that Radisson Blu Cebu and Radisson Blu Chattogram Bay View achieved Executive level certification from Safe Hotels this year. This is the highest level a hotel can achieve, guaranteeing guests completely secure stays. Looking ahead to 2019, Radisson Hotel Group will continue to conduct audits and focus on brand standards, with the aim of delivering world-class and consistent guest experiences across all of our brands.
Success Stories
01 strengthening our resort operations
02 safety & security
Opened Radisson Blu Bali Uluwatu (125 rooms) and Radisson Blu Resort Phu Quoc (514 rooms)
Executive level certification achieved, guaranteeing guests secure stays
Radisson Golf & Convention Center Batam continues to outperform the competition
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Radisson Golf & Convention Center Batam
Radisson Blu Resort Phu Quoc
Radisson Blu Bali Uluwatu
Safe Hotels award winner, Radisson Blu Chattogram Bay View
Safe Hotels award winner, Radisson Blu Cebu
ASIA PACIFIC OWNERS’ NEWSLETTER
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Redefining Hospitality in South Asia
Zubin Saxena Managing Director and Vice President, Operations, South Asia
CREATING OWNERS' VALUE AND UPLIFTING OUR BRANDS
S
outh Asia is one of the largest and most important global regions for Radisson Hotel Group, and will play a vital role in our company’s success as we move into Year Two of Destination 2022, our five-year strategic roadmap. Radisson Hotel Group has been the fastest growing hotel group in India for four consecutive years, with 15 new signings in 2018. With 94 operating hotels, represented by our diverse brands, we are proud of this achievement, which could not have been possible without the support of our esteemed owners. Our vision is built on robust fundamentals. As we work towards the goals of Destination 2022, we have focused our goals around three core pillars: strengthening owner
relationships, achieving operational excellence and solidifying support to our brand portfolio. These will become our essential building blocks. The recent hosting of our first Executive Committee meeting of the year in New Delhi also signifies our company’s deep and lasting commitment to India and South Asia. Looking ahead, I will be sharing various initiatives that we will be undertaking to strengthen our performance and market position. I look forward to working with renewed energy and dedication in the future, as we build a culture of collaboration and work towards achieving our shared vision.
Goals & Growth 01 south asia economy On track to reach 200 hotels across South Asia by 2022.
MARKET SHARE EXPANDED BY
5.6 POINTS
NEW HOTEL
NEW HOTEL
OPENINGS
SIGNINGS
7
15
THE PULSE OF RADISSON HOTEL GROUP
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Opening of Country Inn & Suites by Radisson Zirakpur Airport advertising in Mumbai
Airport advertising in Mumbai
Radisson Rewards global influencer program in India
ASIA PACIFIC OWNERS’ NEWSLETTER
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Haikou, China
Radisson RED Cebu Mandaue
Radisson Blu Zhengzhou Huiji
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THE PULSE OF RADISSON HOTEL GROUP
Extending Our Reach OVERVIEW OF EXPANSIONS ACROSS THE THEATER
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adisson Hotel Group continued to expand strategically across the Asia Pacific region in 2018, with 13 new hotel openings and 26 new signings in a series of key emerging markets. South Asia remains a core area of focus; early in 2018 we announced plans to expand our regional portfolio to more than 200 hotels either operating or in the pipeline by 2022. In India, fifteen new hotels have been signed, covering four of our brands, and in Bangladesh we recently signed our first ever Radisson RED hotel, located in the capital Dhaka. China is naturally another key destination. New openings in recent months have included a Radisson hotel in Suzhou and a Radisson Blu in Zhengzhou. We also revealed plans to introduce the Radisson and Radisson Blu brands to Wuhan and Hainan Province. One of the year’s biggest hotel openings came in Indonesia, where Radisson Blu Bali Uluwatu was unveiled to guests at a major launch ceremony overlooking the Indian Ocean. Radisson Medan also opened its doors, and our Indonesian expansion will continue next year with Radisson Lampung. In the Philippines, the country’s first Radisson RED hotel has been signed in Cebu City and new Park Inn by Radisson hotels are being launched in Bacolod and Manila. Park Inn by Radisson will also be introduced to Thailand and Malaysia, following the signing of new hotels in Phuket and Putrajaya respectively.
Ramzy Fenianos Chief Development Officer, Asia Pacific
Branching Out
01 key emerging markets Asia Pacific region 2018
NEW HOTEL OPENINGS
NEW HOTEL SIGNINGS
13
26
02 expand our portfolio South Asia focus
IN OPERATION OR IN PIPELINE
+200 Hotels BY 2022
ASIA PACIFIC OWNERS’ NEWSLETTER
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2018 Hotel Openings A LOOK AT OUR NEWEST PROPERTIES
RADISSON BLU BALI ULUWATU Bali, Indonesia Opened Q1 2018
Radisson Blu Resort Phu Quoc
RADISSON BLU GORAKHPUR Gorakhpur, India Opened Q4 2018 RADISSON BLU ZHENGZHOU HUIJI Zhengzhou, China Opened Q4 2018 RADISSON BENGALURU CITY CENTER Bengaluru, India Opened Q2 2018
Radisson Blu Bengaluru Outer Ring Road
RADISSON CHANDIGARH ZIRAKPUR Zirakpur, India Opened Q2 2018 RADISSON GWALIOR Madhya Pradesh, India Opened Q1 2018
Radisson Gwalior
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Radisson Blu Bali Uluwatu
Radisson Ningbo Beilun
RADISSON MEDAN Medan, Indonesia Opened Q2 2018 RADISSON MUMBAI ANDHERI MIDC Mumbai, India Opened Q3 2018 RADISSON NINGBO BEILUN Ningbo, Zhejiang, China Opened Q4 2018
Radisson Kolkata Ballygunge
RADISSON BLU RESORT PHU QUOC Phu Quoc, Vietnam Opened Q3 2018 RADISSON SUZHOU Suzhou, Jiangsu, China Opened Q4 2018 COUNTRY INN & SUITES BY RADISSON JAMMU Jammu, India Opened Q4 2018 COUNTRY INN & SUITES BY RADISSON ZIRAKPUR Zirakpur, India Opened Q4 2018
ASIA PACIFIC OWNERS’ NEWSLETTER Radisson Suzhou
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2018 Hotel Signings NEW HOTELS AND DESTINATIONS RADISSON BLU HAIKOU Hainan, China Opens Q3 2021 RADISSON BLU RESORT VISAKHAPATNAM Visakhapatnam, India Opens Q1 2020 RADISSON BLU WUHAN ETD ZONE Wuhan, China Opens Q1 2020 RADISSON DHARAMSHALA Dharamshala, India Opens Q3 2019 RADISSON MUMBAI INTERNATIONAL AIRPORT Mumbai, India Opens Q2 2020 RADISSON NINGBO BEILUN Ningbo, China Opened Q4 2018 RADISSON PANIPAT CITY CENTER Panipat, India Opens Q3 2021 RADISSON PHU QUOC Phu Quoc, Vietnam Opens Q3 2019 RADISSON RESORT DAMAN Daman, India Opens Q2 2019 21
Phuket Town, Thailand
RADISSON SANYA AIRPORT Sanya, China Opens Q2 2019 RADISSON VIJAYAWADA MG ROAD Vijayawada, India Opens Q2 2022 RADISSON WUHAN OPTICS VALLEY Wuhan, China Opens Q2 2024 RADISSON RED CEBU MANDAUE Mandaue City, Cebu, Philippines Opens Q4 2021 RADISSON RED NOIDA EXPRESSWAY Noida, India Opens Q2 2023
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Country Inn & Suites Agra
PARK PLAZA GURUGRAM SECTOR 29 Gurugram, India Opens Q1 2020 PARK PLAZA HYDERABAD Hyderabad, India Opens Q3 2019 PARK INN BY RADISSON BACOLOD Bacolod, Philippines Opens Q3 2020 PARK INN BY RADISSON ILOILO Iloilo, Philippines Opens Q2 2019
Bacolod City, Philippines
PARK INN BY RADISSON INDORE Indore, India Opens Q1 2022 PARK INN BY RADISSON KOLKATA AIRPORT Kolkata, India Opens Q2 2022 PARK INN BY RADISSON NAGPUR Nagpur, India Opens Q1 2022 Wuhan, China
PARK INN BY RADISSON PHUKET TOWN Phuket, Thailand Opens Q2 2020 PARK INN BY RADISSON PUTRAJAYA Putrajaya, Malaysia Opens Q4 2020 COUNTRY INN & SUITES BY RADISSON AGRA Agra, India Opens Q3 2021 COUNTRY INN & SUITES BY RADISSON MUZAFFARNAGAR Muzaffarnagar, India Opens Q1 2023 COUNTRY INN & SUITES BY RADISSON SITAPUR ROAD Lucknow, India Opens Q2 2021 ASIA PACIFIC OWNERS’ NEWSLETTER
Radisson Phu Quoc
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2018 Media Coverage A GLANCE AT OUR PUBLICITY CAMPAIGNS
TOTAL NO.
OVER
2018
>938
$11.0M
30%
NEWS CLIPPINGS
PR VALUE
INCREASE
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ASIA PACIFIC OWNERS’ NEWSLETTER
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Our Dynamic Global Hotel Portfolio
AMERICAS
706 HOTELS
76,163 ROOMS
EMEA
527 HOTELS
116,362 ROOMS Hotels in operation and under development as of December 2018
A M E R I C A S 7 1 9 H O T E L S
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THE PULSE OF RADISSON HOTEL GROUP
E M E A 5 0 4 H O T E
GLOBAL
1,450 HOTELS
226,473 ROOMS
A S I A PAC I F I C
217 HOTELS
33,948 ROOMS
L S
A S I A PAC I F I C 200 HOTELS ASIA PACIFIC OWNERS’ NEWSLETTER
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Contact Asia Pacific Corporate Office 3 HarbourFront Place #08-01/02 HarbourFront Tower 2 Singapore 099254 T: +65 6511 9266
Development apacdevelopment@radissonhotels.com
Public Relations & Communications apaccomm@radissonhotels.com
Radisson Blu Plaza Sydney