The parent of Rezidor Hospitality, SAS Group, has announced that it is intending to list its hotels business on the Stockholm stock exchange in the next 12 months.
While the listing is no surprise, the decision to do it in Stockholm seems odd, given that Rezidor is headquartered in Brussels and has just 29 of its 279 hotels in Sweden.
The chain ought to attract considerable interest. It is one of the fastest growing hospitality companies in the world. Last year it added a net 27 hotels and already this year has added 62 properties. It is targeting more than 700 hotels by 2015.
It is entirely leased, managed or franchised. Of the year end total of 217 properties, 60 were leased, 81 managed and 76 franchised. These properties were primarily Radissons (147), with 58 Park Inns, three Regents and six Country Inns.
EBITDA in 2005 was SEK412m (Eu44m) from sales of SEK5.46bn (Eu590m). The IPO is expected to raise about SEK5bn (Eu540m) for SAS from its 75% holding.
Carlson, the brand owner of the Radisson family of brands, owns 25% of Rezidor which it acquired last year in a deal that saw it swap a reduced income from its franchises for a stake. It is expected to remain a \significant\ shareholder following the IPO, said SAS.
Separately, six of Rezidor's midmarket Park Inn properties have been sold to Danish investment group Ejendomsinvest for £95m. The properties, leased to Park Hotels Management on a net yield of 5.35%, were previously owned by Jefferson Hotels.
They were bought as part of a package of nine former Queens Moat House hotels last October from Whitehall Street for about £110m.