• Rezidor IPO by year-end

The owners Rezidor Hotel Group, the renamed Rezidor SAS Hospitality, have formally announced the intention to list the company on the Stockholm stock exchange before the end of this year.

Airline SAS is to sell its entire 75% shareholding while Carlson, the owner of most of Rezidor’s brands, is to increase its stake from 25% to 35%.

The listing will not see any new money raised for Rezidor. SAS said that the listing will, however, increase attention from the capital markets and the media, improving the profile of both Rezidor and its brands.

This in turn should further enhance Rezidor’s position in its markets, expand its opportunities to obtain contracts with attractive partners and property owners, and further strengthen the platform for the future development of its business.

In the meantime, Rezidor is chugging along nicely anyway. In the first nine months of this year it increased revenue by 24.3% to Eu521.9m and recorded a consolidated profit after tax of Eu20.2m.

Growth in EBITDAR was 37.3% to Eu174.7m while EBITDA was up 75.6% to Eu43.6m. Revpar was 7.5% higher at Eu72.

The Rezidor portfolio comprises 226 hotels of which 63 were leases, 90 operated on management agreements and 73 franchised out through its role as Carlson’s master franchiser in EMEA.

The heavy lease component of its estate will make a sharp contrast with Anglo-Saxon operators which have shied away from such arrangements for fear of having them capitalised back onto their balance sheets.

Meanwhile, Chinese firm Home Inns & Hotels Management, the second largest budget hotel chain in China, has raised $109m through its IPO on NASDAQ. Its share price soared 63% on the first day of trading.

Its bigger rival, Jinjiang International Hotels, the biggest hotel operator in China, might have to delay its IPO on the Hong Kong stock market due to the backlog of other listings. The IPO is expected to raise the equivalent of US$300m. The company manages 250 properties, mostly upscale, although it also has a chain of mid market hotels.

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