STOCKHOLM, Sweden, March 14, 2005 (PRIMEZONE) -- SAS Group and US-based Carlson Hotels Worldwide have signed an agreement whereby Rezidor SAS Hospitality Group achieves improved commercial terms and extension options until 2052 of its Master Franchise agreements (MFA) with Carlson in return for a 25% shareholding in Rezidor SAS by Carlson. The MFA is the agreement between Rezidor SAS and Carlson by which Rezidor manages the Carlson Hotel brands operated by Rezidor SAS under the brand names Radisson SAS, Park Inn and Regent throughout Europe, the Middle East and Africa.
The transaction will substantially increase the annual profitability of Rezidor as from the closing of the transaction, which is pending regulatory approval and is expected to take place in the first half of 2005. Under the improved terms of the transaction, and on a fully annualized basis for 2005, Rezidor SAS profitability before tax is estimated to be impacted positively by Euro 11 m. This profit enhancement is expected to increase in the future as the business grows and its revenues increase. The transaction will have an immediate accretive impact on the SAS Group 2005 earnings.
"The SAS Group is very pleased to announce this agreement with Carlson Hotels Worldwide. The SAS Group will maintain the majority holding and control over Rezidor SAS, while also strengthening the strategic business platform of the company for the future," said Mr Jorgen Lindegaard, President and CEO of the SAS Group.
"Carlson Hotels Worldwide is a strategic partner within the global hospitality sector for Rezidor SAS. It will bring additional scale and profitability to Rezidor SAS and further enhance its development opportunities," said Mr. Gunnar Reitan, Executive VP & Deputy CEO of the SAS Group and Chairman of Rezidor SAS.
The deal will give Carlson two seats on the six-member board of Rezidor SAS.
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