SAS Group completes strategic agreement with Carlson Companies

The SAS Group and US-based Carlson Hotels Worldwide have completed 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 incorporating the brand names Radisson SAS, Park Inn and Regent throughout Europe, the Middle East and Africa.

The transaction is expected to substantially increase the annual profitability of Rezidor as from the closing date June 30. 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 MEUR11. The impact for the second half of 2005 is expected to be MEUR 6. This profit enhancement is expected to increase in the future as the business grows and its revenues increase.

The deal will give Carlson two seats on the six-member board of Rezidor SAS.

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