Business management & development
that runs through the rooms and the public areas, including the Art Gallery. “The brand offers a timeless lifestyle experience because art is more timeless than fashion,” says Elie Younes, executive vice-president and global chief development officer at Radisson Hotel Group (RHG). “It blends art, including the experiential element, with lifestyle, which not only makes the product more timeless but also gives a sense of meaning to the guest experience. It is also rooted in the local environment.” Younes has just handled the integration of
art’otel into the RHG, so appreciates the value proposition behind the brand as well as the fact that its properties do not need ongoing investment to be timeless. “It brings more opportunities to the owners and
more possibilities to the guests,” he adds. “It helps RHG expand fully from the luxury lifestyle segment to mid-scale and the deal is the fruit of a very successful relationship between RHG and PPHE Hotel Group – a relationship that has already lasted more than 20 years and has now become even closer.”
Parts form a whole Including art’otel in the RHG’s portfolio of ten distinct brands is like putting the final piece into a jigsaw. Across the brand spectrum, the Group offers inspiration through travel by delivering authentic and engaging cultural experiences, and the art’otel experience enables guests to truly feel part of the local art and design community in each destination. At the top end of the RHG portfolio sits Radisson
Collection, the luxury lifestyle collection of iconic properties in unique locations that have a strong focus on art through its artist collaborations. The character of each hotel is closely tied to its location and features bespoke designs for contemporary living, dining, fitness and wellness. As a premium upper upscale lifestyle brand, art’otel sits on the next level, just above Radisson Blu, which is the largest upper upscale brand in Europe. Radisson Blu Hotel at Porsche Design Tower Stuttgart is the next property under the brand and is scheduled to open in late 2023. Radisson RED is the group’s upscale lifestyle brand, offering informal services where anything goes, a vibrant social scene, and stylish public spaces with standout design, art and music. Finally, prizeotel fills the midscale urban design segment. “The integration of RHG and PPHE extends a
mutually beneficial relationship,” remarks Younes. “With art’otel, we have found something that fits into a gap in the spectrum of guest experiences that we offer. Unlike some of our competitors, we don’t want to get carried away with brand proliferation. We only want brands that add value to guests and shareholders. So, we now have ten brands that fit very well together.”
Hotel Management International /
www.hmi-online.com
“There is a clear position for art’otel in our brand portfolio,” he adds. “Above it we have the Radisson Collection, which is all about hotels with personality. Then below it we have Radisson Blu, our upper upscale brand. So far, the reaction from the market has been very supportive, very positive. Owners are calling us to ask about the brand, and there is a lot of interest.” Using a local artist as the starting point to create a property that is integrated with the locality and local culture opens up a huge range of opportunities for expansion, as any destination will result in a property that is unique and inspirational. With art’otel, RHG has brought in a meaningful brand that provides a unique guest experience and a compelling value proposition for the owner. Maintaining those value-added qualities is vital in the partnership between PPHE and RHG, which is why the deal has been carefully structured and falls short of complete integration.
A relationship built on synergy Although art’otel is now part of the RHG brand portfolio, the move is not taking the form of an official takeover and there will not be full integration into the group. Areas such as IT infrastructure, for example, will remain independent, as will the plans for expansion and investment in new properties. The reason behind this is a desire to create a win- win scenario that benefits guests and owners as much as possible, without introducing any unnecessarily costly and cumbersome integration issues. “RHG and PPHE have a wisely restructured business relationship,” Younes explains. “We will not fully integrate art’otel into our systems, but will instead integrate only certain elements, which will allow us to keep the day-to-day maintenance of the brand with PPHE. Our key strengths are commercial – adding revenue – so we will drive the brand
19
Above: The kitchen and bar area of the Radisson
Collection Hotel Santa Sofi a Milan.
Opposite: RHG’s executive vice- president & global chief development offi cer, Elie Younes.
Radisson Hotel
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