Radisson Grows on Land, at Sea
Susse Chalet Goes Upscale N o longer content to be just a competent regional budgetsegment lodging operator, Susse Chalet is targeting the high end of the limited-service market. "We are taking direct aim at the market served by Hampton Inns and Comfort Inns," said Fred Roedel, president and C E O of Susse Chalet. The chain's repositioning began quietly some two years ago, when the company started upgrading its properties. Roedel said the company had invested more than $8 million since 1994 on renovations to about half of its hotels. That investment was designed to upgrade properties according to AAA's criteria for Three-Diamond hotels, as well as to achieve a standard equal to that of more-recently built properties. The result? O f the chain's 36 units, 31 o f those hotels are now modern, high-rise buildings with interior corridors and enhanced security.
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By the end of 1996 Susse Chalet's 3,960 rooms averaged just 3.5 years in age (compared to being eight years old in 1994), and 55 percent of those were actually less than three years old. Additional business-traveler upgrades in some of the rooms include data ports and other electronic amenities. Enhanced lighting, keyless locks, and the elimination of exterior access to rooms appea to all sorts of travelers, according to Roedel,"especially to female travelers, who now constitute 35 percent of our guests." N o less attractive and appealing is the chain's promise for quality service, backed by its 100-percent money-back guara n t e e - a n offer with which few of Susse Chalet's old or new competitors can or are willing to compete. (See, for example, M.R. Evans et al.,"The 100-Percent, Unconditional, Money-Back Guarantee," Cornell Hotel and Restaurant Administration Qua> terly, Vol. 37, No. 6 [December 1996], pp. 56-61.) Susse Chalet maintains a website at < < h t t p : / / www.sussechalet.com>>.--EC.
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Radisson Hotels Worldwide added 55 locations to its system during 1996, including several properties in countries where Radisson didn't previously have a presence. In early 1997 Radisson Hospitality Worldwide became the sole owner of Radisson Seven Seas Cruises, the world's third largest luxury cruise line, accentuating Radisson's commitment to the cruise industry and suggesting that Radisson has future plans for expanding that business segment. Radisson's expansion at the rate of one hotel every seven days in 1996 is far faster than the cornpaw's own pre-year prediction of one hotel every ten days, according to Jay Witzel, president of Radisson Hotels Worldwide. Much of the growth was possible through the development in 1994 of a partnership with SAS International Hotels in Europe, noted Kurt Ritter, president of Radisson SAS HotelsWorldwide. "Last year I announced that our target was an additional eight hotels a year for Radisson SAS with a minimum of 100 hotels by the end of the century," Ritter said. "I am confident that with our current strong development plans we will be able to move forward faster and reach the expected number of hotels by 1998, if not earlier." Radisson's "firsts" in 1996 include its first branded hotel in Scotland, the Hotel Airth Castle Stirlingshire, and the opening of hotels in central Tokyo, Costa Rica, and Ecuador. Radisson's acquisition of Seven Seas Cruises immediately puts Radisson in position to manage five luxury liners that reach 500 ports-of-call and every continent, including the polar regions. "We intend to grow the cruise line through management contracts, joint ventures, charters, and acquisitions," explained Witzel.--F. C.