The Rezidor Hotel Group is looking to expand its three star Park Inn brand. The company said it has found opportunities in the budget segment despite the difficult economic times. Rezidor operates three Radisson Hotels and has already signed two deals for the Park Inn brand this summer. Chief Executive of Rezidor said mid market hotels are less expensive to build and operate, so are often more profitable. Kurt Ritter said the general downturn in Dubai, which has many more five star hotels, has made the budget segment more lucrative.
Mr. Ritter said that although Dubai’s revenue per available room (RevPar) drop was a substantial 35%, this decline was from very high levels. He believes that globally, RevPar in Dubai is still one of the best. “I think there is no part of the world that has had such explosive growth.”
