2013 Annual Report

Transcription

2013 Annual Report

2013 Annual Report
Carlson 2013 Annual Report
From the Chair
I was honored to be elected Chair of the Carlson Board of
Directors in 2013 and to have begun work with the Carlson
Board of Directors and management team to increase shareholder value through robust corporate governance and support
for management’s focus on operational excellence.
2013 marked the 75th anniversary of CarlsonSM, an occasion
that was commemorated by Carlsonians around the globe. This
milestone of corporate longevity underscores the tremendous
legacy of our founder and subsequent leaders of Carlson. It is
also a tribute to our governance model that engages independent directors working in cooperation with family directors to
support sustained success. Above all, our 75th year was
characterized as looking forward. The Carlson Board and
management launched a collaborative process to build a
strong foundation for the Company’s future success.
Of primary importance for the Board of Directors was effecting closer alignment of business performance with shareholder
expectations. This objective was expressed in a stronger focus
on the return on invested capital deployed within our existing
businesses and also in a strategic review process that evaluated each of Carlson’s underlying businesses to determine their
long-term fit with shareholder targets for return and risk.
As a result of this undertaking, in the third quarter, the Board
articulated a vision to explore strategic options for the restaurant business including a possible sale of the business and to
pursue full ownership of Carlson Wagonlit Travel (CWT), given
partner J.P. Morgan’s desire to exit its minority stake. In
addition, the Board requested that management work to
further delineate an ongoing strategy for the hotel business
to enhance profitability and value creation.
These board conclusions provided a clear road map for management execution for the remainder of 2013 and into 2014.
On May 20, 2014, Carlson announced that the company had
entered into a definitive agreement for the sale of TGI FridaysSM
restaurants to Sentinel Capital Partners and TriArtisan Capital
Partners. The transaction closed on July 15, 2014. On June 23,
2014, Carlson announced that the company had signed a
definitive agreement to acquire from JPMorgan Chase & Co.
(JPMC) the 45 percent equity interest JPMC indirectly held in
CWT. The transaction is also expected to close in July 2014.
Management work on the hotel strategy is ongoing, but
significant operating improvement has already been achieved
with the business returning to profitability for the first time
since 2008.
Collectively, and through our Finance, Audit, Human
Resources & Compensation and Governance committees,
the Board continued its vigilance in the areas of monitoring
business performance, risk management, appropriate controls,
effective capital investment and oversight of key decisions.
The Board is proud of the company’s efforts in its Responsible
Business activities, including support of the World Childhood
Foundation, and philanthropic initiatives to combat human
trafficking and support job creation.
In 2013, key additions to the Carlson leadership team
included:
Wolfgang M. Neumann, named president and CEO of The
Rezidor Hotel Group. Since assuming his new role in January,
Mr. Neumann has restructured the organization and positioned
the company for further growth by adding a few new key
employees. He has successfully fostered strong owner relations and, importantly, maintained the cultural elements of the
business. These include the company’s legendary Yes I Can! SM
service philosophy, acclaimed ethics and integrity standards,
and fighting Z-spirit.
Bradley Hall, appointed CFO and treasurer. Hall has been
with Carlson for 15 years and prior to assuming the interim CFO
duties was responsible for the Company’s treasury, strategic
planning and investment analysis and risk management activities. He has consistently demonstrated his ability to lead and
manage the finances for Carlson’s global hospitality and travel
businesses. He has been instrumental to the CWT acquisition
during his brief tenure in this role.
The Board also welcomed a new member in May: Michael
Sweeney, president and CEO of Steinway Musical Instruments,
Inc. and CEO, Steinway & Sons. Mr. Sweeney brings both strong
management experience and broad investment experience to
the Carlson Board. Mr. Sweeney has already made meaningful
contributions to Board deliberations.
Looking ahead, the Board will continue its focus on creating
shareholder value and the implementation of Carlson’s new
long-term strategy. The newly focused portfolio provides a
significant opportunity to enhance profitability and to reduce
cost and complexity. The Board and management team have
already begun initiatives to align governance, corporate
structure and compensation in support of these outcomes.
While challenges will inevitably arise as we move forward in this
ambitious undertaking, we will meet them with the Carlson spirit
of never, ever give up. I am truly optimistic that we are entering
our fourth quarter-century positioned for great success.
Diana L. Nelson
Chair, Carlson
2013 Contents
04 10 16 22
40 46 52 58
CarlsonSM
Overview
2013
Highlights
Carlson
Wagonlit Travel
Carlson Rezidor
Hotel Group
TGI
FridaysSM
Responsible
Business
Glossary and
2014 Events
Company
Leadership
A timeline of the major
events in Carlson’s
businesses and a
look at the company’s
global reach.
The key achievements
for Carlson during
2013 and the transformative path ahead
with Vision 20/20.
The long-term growth
in the travel market is
favorable as Carlson
Wagonlit Travel builds
on a strong 2013.
New signings and
program introductions
distinguished a year
of momentum and
revenue gains.
A re-imaging
campaign and global
growth keeps the
casual dining brand
relevant for guests.
Carlson’s 2013
initiatives continue the
company’s leadership
and commitment to
operating responsibly.
A glossary of
industry-specific
terminology and
subsequent event
highlights for 2014.
Learn more
about Carlson’s
management team
and Carlson’s Board
of Directors.
On the Cover: Carlson’s Vision 20/20 core values are Caring Spirit, Service Heart and a commitment to creating a Lasting Legacy.
2 | Carlson Annual Report 2013
Table of Contents | 3
Carlson History
1938
Curtis L. Carlson founded the
Gold Bond Stamp Company. By 1953,
Gold Bond Stamps had become a
household name in the United States.
2004
Carlson was the first North American
company to sign the Code of Conduct for
the protection of children from sexual
exploitation in travel and tourism.
2008
Hubert Joly was named president
and chief executive officer, becoming
the first non-family chief executive officer.
1962
Carlson acquired its first Radisson® hotel
located in Minneapolis, Minnesota. Today,
there are more than 550 Radisson Blu®
and Radisson hotels globally.
1998
The 100th international TGI Fridays
debuted in Edinburgh, Scotland, and the
500th opened in Plymouth, Minnesota.
2012
Carlson Hotels and The Rezidor Hotel Group join
forces as a strategic partnership and go to market
as The Carlson Rezidor Hotel Group.
1975
Carlson acquired TGI Fridays Inc. with
12 restaurants in nine states, marking
the company’s entrance into the restaurant
business. Today, there are more than
930 TGI FridaysSM restaurants operating
in more than 60 countries and territories.
1998
Marilyn Carlson Nelson, daughter of
founder Curtis L. Carlson, is named
president and chief executive officer.
2012
Trudy Rautio is elected president and
chief executive officer of Carlson.
1979
1983
1986
Carlson acquired Ask Mr. Foster Travel,
a travel agency chain that would be
rebranded as Carlson Travel Group.
TGI Fridays undertook an initial
public offering on December 8, 1983,
and sold out its first day.
Carlson and the Radisson brand
entered into an international partnership
agreement with SAS International Hotels.
SAS International Hotels would later
become The Rezidor Hotel Group.
1994
1989
1989
Carlson and the Accor Group combined
business travel interests to form Carlson
Wagonlit Travel (CWT), which has become a
global leader in business travel management.
2013
Carlson celebrated its 75th anniversary.
With hotels and restaurants around the
world and the premier business travel
management company, Carlson is a global
leader in the hospitality and travel industries.
Carlson opened its world headquarters in
Minnetonka, Minnesota—home to the offices
of more than 1,000 employees.
2013
Diana Nelson became chairman of the board,
the third in the company’s history, preceded
by her grandfather, Curtis L. Carlson, and
her mother, Marilyn Carlson Nelson.
Edwin C. Gage is named
chief executive officer.
2014
Nearing achievement of the goals set forth
by Ambition 2015, Trudy Rautio unveiled
Vision 20/20, a strategy that renews the
company’s focus on the guest experience.
Carlson History | 5
Carlson History
1938
Armed with a $55 loan, Curtis L.
Carlson founded the Gold Bond
Stamp Company. By 1953, Gold Bond Stamps had
become a household name in the United States.
1953
Gold Bond trading stamps are
introduced into SUPERVALU®—one
of the largest supermarket chains in the United States
and the first large supermarket chain in the nation
to use trading stamps. Other supermarket chains
like Safeway, Colonial, Acme and First National,
along with hundreds of additional retail units, quickly
followed and began using Gold Bond trading stamps.
1955
Gold Bond trading stamps are
introduced into Canada and
eventually became the largest trading stamp
company in the country.
The company moved into its own building
at 1629 Hennepin in downtown Minneapolis.
1960
CarlsonSM acquired 50 percent
interest in the Radisson Downtown
Hotel in Minneapolis, Minnesota, marking the
company’s entrance into the hospitality business.
1961
The Minnesuing Acres Training
Facility is opened on Lake
Minnesuing in Wisconsin.
1962
Gold Bond Stamp Company
headquarters opened in
Plymouth, Minnesota.
Contract Service Associates was officially
formed and started business.
Carlson acquired the remaining interest in the
Radisson in Minneapolis, Minnesota. Today, there
are more than 550 Radisson Blu® and Radisson®
hotels globally.
1968
Gold Bond Stamp Company, in joint
venture with Mitsubishi, the Japanese
industrial giant, introduced Gold Star and Gift Bond
trading stamps throughout Japan.
1975
Carlson acquired TGI Fridays Inc. with
12 restaurants in 9 states, marking the
company’s entrance into the restaurant business.
Today, there are more than 930 TGI FridaysSM
restaurants in more than 60 countries and territories.
1977
Carlson acquired Country Kitchen
International Inc., a chain of family
style restaurants.
1979
1989
Formed the North American Financial Corporation
(NAFCO) leasing company.
Carlson opened its world headquarters in
Minnetonka, Minnesota—home to the offices
of more than 1,000 employees.
The company established the Hotel
and Resort Group to include Radisson
Hotels, Inns and Resorts as well as Colony Resorts.
1980
Carlson opened its Worldwide Reservations
Center in Omaha, Nebraska, where today, more
than 350 reservations and hotel specialists are
employed.
1981
1991
Carlson acquired Ask Mr. Foster
Travel, a travel agency chain that
would be rebranded as Carlson Travel Group.
Carlson acquired E.F. MacDonald Motivation company
that would become Carlson Marketing.
1983
TGI Fridays undertook an initial
public offering on December 8, 1983,
and sold out its first day.
1985
The Carlson Real Estate Company
is founded.
Carlson signed an international partnership
agreement with Hotels Paraiso in Mexico and
an agreement where the 1,000-room Hotel
Concorde La Fayette, Paris, France, became
a Radisson affiliated hotel.
TGI Fridays signed its first international
development agreement with Whitbread
& Co. PLC of London.
1986
Carlson and the Radisson brand
entered into an international
partnership agreement with SAS International
Hotels. SAS International Hotels would later
become The Rezidor Hotel Group.
1987
Carlson founded the Country Inns
& Suites By CarlsonSM brand with
the opening of its first hotel in Burnsville,
Minnesota. The brand now operates more
than 470 hotels throughout the world, primarily
in the United States, Canada, India and Mexico.
Edwin C. Gage is named chief
executive officer.
Carlson opened Slavyanskaya Hotel
Moscow, the first American-managed
hotel in the former Soviet Union.
Carlson announced an agreement with Edwardian
Hotels of London to add its nine upscale fivestar and four-star hotels to the Radisson chain.
1992
Carlson launched Look To BookSM,
an innovative, patented online
reward program for travel agents.
The SSC Radisson Diamond Cruise
Ship is launched on its maiden voyage.
1994
Carlson and the Accor Group
combined business travel interests
to form Carlson Wagonlit Travel (CWT), which
has become a global leader in business travel
management.
Carlson opens its first hotel in South America,
the Radisson Plaza Hotel La Paz in La Paz, Bolivia.
The 100th international TGI Fridays debuted
in Edinburgh, Scotland, and the 500th opened
in Plymouth, Minnesota.
1999
Carlson co-founded the World
Childhood Foundation with Her
Majesty Queen Silvia of Sweden to preserve the
rights of abused and sexually exploited children
around the world. Childhood supports more than
100 projects in 17 countries, working with children
who are victims of abuse, families at risk, children
in alternative housing and street children.
Carlson founder and chairman of the board, Curtis L.
Carlson, passed away on February 19, 1999.
Carlson launched the guest loyalty program, Gold
Points RewardsSM. The program would later evolve
into Club CarlsonSM, the global rewards program of
Carlson Rezidor Hotel Group.
2000
Carlson acquired the Park
Plaza® and Park Inn® by
Radisson brands.
2002
Carlson announced the signing of a landmark
agreement to develop the first Radisson Blu hotel
in the United States in Chicago’s iconic Aqua Tower.
The hotel opened in November 2011.
Carlson and One Equity Partners (OEP) acquired
Accor’s 50 percent share of Carlson Wagonlit Travel
(CWT). Carlson became CWT’s majority shareholder
with 55 percent and OEP owning 45 percent.
Carlson acquired a majority stake in RHW
Hotel Management Services, a key Indian
partner, and announced plans to triple the
size of its hotel portfolio in India by 2012.
Carlson unveiled a new logo symbolizing the
company’s heart, heritage and future.
2007
Carlson sold Regent Seven
Seas Cruise Line to Apollo
Management L.P.
Carlson Wagonlit Travel (CWT) U.K. unveiled a
carbon calculator tool to advise environmentally
aware travelers of the level of carbon dioxide
emission on a trip by air or rail.
Carlson increased ownership in The Rezidor
Hotel Group to 41.7 percent.
2008
SAS International Hotels became The Rezidor
Hotel Group and acquired additional franchise rights
to Regent Hotels & Resorts, Park Inn by Radisson
and Country Inns & Suites By Carlson.
2009
2004
2010
Carlson signed an international partnership
agreement with Commonwealth Hospitality
Inc. of Canada.
1997
The Country Kitchen brand
is sold.
TGI Fridays became the first casual dining chain to
operate a restaurant in Moscow.
1998
Carlson celebrated its
60th anniversary.
In line with its commitment to World
Childhood Foundation, Carlson was
the first North American company to sign the Code
of Conduct for the protection of children from sexual
exploitation in travel and tourism.
2005
Carlson acquired 25 percent
ownership of The Rezidor Hotel
Group, solidifying the company’s commitment to
global growth.
2006
Carlson rebranded Radisson
Seven Seas Cruises to Regent
Seven Seas Cruise Line.
70th anniversary.
Hubert Joly was named president and chief
executive officer, becoming the first non-family
chief executive officer. Marilyn Carlson Nelson
remained chairman of the board.
SAS International Hotels signed a master franchise
agreement with Carlson to manage the Radisson
brand in Europe, the Middle East and Africa and
formed the pioneering co-branded partnership,
Radisson SAS, which would eventually become
the Radisson Blu brand.
Carlson acquired Regent
Hotels & Resorts.
Carlson entered Europe with the opening of the
Radisson Hotel Beke, Budapest.
TGI Fridays signed a development agreement with
Watami Food Service Co, Ltd., which resulted in the
development of the brand in Japan.
and positioning of Radisson in North America
as a globally consistent first-class brand. The
growth strategy set forth the goal of 1,500 hotels
in operation and under development by 2015.
Carlson Wagonlit Travel (CWT) acquired Navigant
International, doubling its size in North America
and reinforcing its presence in Asia Pacific.
Carlson expanded hotel
operations in Asia Pacific with
the opening of a regional office in Singapore.
1996
1988
The Curtis L. Carlson School of Management is
established at the University of Minnesota.
The Rezidor Hotel Group completed an initial
public offering on the Stockholm Stock Exchange,
with the Radisson SAS brand as a key asset.
Carlson purchased additional shares and
increased its ownership to 35 percent.
Radisson Diamond Cruise and Seven Seas
Cruise Line merged to become Radisson
Seven Seas Cruises.
TGI Fridays entered into its first joint venture
to begin operations in Asia.
50th anniversary.
Marilyn Carlson Nelson, daughter of founder Curtis
L. Carlson, is named president and chief executive
officer.
Carlson celebrated the opening of its 1,000th hotel.
The Radisson SAS brand name
is updated to Radisson Blu.
Carlson Marketing is sold to Groupe Aeroplan.
Carlson sold the Regent luxury
hotel brand to Formosa
International Hotels Corporation.
Carlson signed the United Nations Global
Compact encouraging businesses to adopt
sustainable and socially responsible practices.
Carlson achieved a perfect score on the Human
Rights Campaign’s Corporate Equality Index.
Carlson was named to Working Mother
magazine’s list of 100 Best Companies.
Carlson announced Ambition 2015, a global growth
strategy for its hotels, fueled by a $1.5 billion
investment and focused on the improvement
2011
Club Carlson is launched as the global
hotel rewards program for Carlson
Rezidor Hotel Group, and it becomes known as one
of the richest hotel loyalty programs in the industry.
2012
Longstanding Carlson partner
Edwardian Hotels rebranded
12 Radisson properties in London to Radisson Blu.
Carlson Hotels and The Rezidor Hotel Group join
forces as a strategic partnership and go to market
as The Carlson Rezidor Hotel Group.
Trudy Rautio is elected president and chief
executive officer of Carlson.
Club Carlson launched the Club Carlson
Premier Rewards Visa® Signature Card in
partnership with US Bank.
2013
Carlson celebrated its 75th
anniversary. With more than
1,340 hotels in operation and under development,
more than 930 restaurants, and the world’s
premier business travel management company,
Carlson is a global leader in the hospitality and
travel industries.
Diana Nelson became chair of the board, the
third in the company’s history, preceded by her
grandfather, Curtis L. Carlson, and her mother,
Marilyn Carlson Nelson.
Club Carlson was the first hotel loyalty program to
commit to a global carbon offsetting program.
2014
Carlson Rezidor Hotel Group
announced two new brands,
Quorvus Collection and Radisson Red.
Nearing achievement of the goals set forth by
Ambition 2015, Trudy Rautio unveiled Vision 20/20,
a strategy that renews the company’s focus on the
guest experience and the delivery of the brands’
promises by developing talent, creating a service
culture that is unrivaled in the industry and fostering
a culture of innovation and collaboration.
Carlson History | 7
At-A-Glance
Company Structure
With some of the world’s most recognizable hotel, restaurant and travel management
brands, CarlsonSM is a global leader in the hospitality and travel industry. Family-owned
Carlson is one of the largest private companies in the U.S.
Carlson’s three business units are among the world leaders in their respective industries.
Global Locations
+150
Countries
+178,000
Employees
EMEA
Hotels: 493
Fridays: 189
CWT: 133
AMERICAS
Hotels: 668
Fridays: 608
CWT: 57
ASIAPAC
Hotels: 184
Fridays: 136
CWT: 19
+37 Billion
Global Sales, USD
Carlson Wagonlit Travel is the world’s leading
business travel management company.
The company has been innovating travel
management since the 19th century.
CARLSON WAGONLIT
CWL_07_0774_Logo_Carlson_Print
22/02/2007
ÉQUIVALENCE PANTONES
ÉQUIVALENCES QUADRI
PANTONE 320 C
CYAN 100% JAUNE 40%
PANTONE 485 C
MAGENTA 100% JAUNE 100%
Ce fichier est un document d’exécution créé sur
Illustrator version 10 ou ultérieure).
Carlson Rezidor Hotel Group is one of the
world’s largest and most dynamic hotel
companies with a fantastic portfolio
of extraordinary brands.
As the original casual dining bar and grill,
TGI FridaysSM offers authentic American
food and legendary drinks, served with
genuine personal service.
+1,340
Hotels in Operation &
Under Development
Employees by Business Unit
System-wide Sales
Restaurants
Carlson Rezidor
Hotel Group
20,000
Restaurants
$7.5 Billion
70,000
Travel
+930
2013
TGI FridaysSM
$2.7 Billion
Hotels
CWT
as of Q4 2013
as of Q4 2013
88,000
$26.9 Billion
2013
#1 Ranked
Radisson Blu® is
an iconic, stylish,
sophisticated
contemporary
hotel brand with
leading-edge style
where the delight
is in the detail.
Radisson® is modern
in outlook, socially
responsible and
service-driven
with true hoteliers
committed to
building meaningful
relationships
with a passion
for Yes I Can! SM
hospitality.
With smart, engaging
service, Park Plaza®
hotels’ trend-setting
designs capture
the energy and
style of each
individual location.
Park Inn® by
Radisson is
bright, bold, fresh,
uncomplicated
and friendly with
unexpected
touches of iconic,
contemporary
design.
Country Inns &
Suites By CarlsonSM
is a caring and
consistent hotel
brand that offers
a comfortable
hospitality
experience, all
delivered with a
touch of home.
Hotel Missoni® is
a stylish, intimate,
contemporary,
eclectic brand
combined with
the best bars
and restaurants,
making this a truly
unique luxury hotel
experience.
Business Travel
Management
Company
Notes I All figures are based on 2013 data. System-wide revenue is total sales figure for all transactions occurring under one of Carlson’s brands whether owned, managed or franchised,
as well as all CWT traffic. Carlson Rezidor Hotel Group hotel counts include hotels in operation and under development.
At-A-Glance and Company Structure | 9
Carlson Highlights
2013 Overview
Global Growth
With the achievement of a number of milestones and key leadership appointments,
CarlsonSM continued its momentum in its 75th year as the company’s businesses shifted
to the transformative objectives of Carlson’s Vision 20/20 strategy.
Carlson Lexicon
System-wide
Revenues
Revenues representing
the total sales figure for
all transactions occurring
under one of Carlson’s
brands, whether owned,
managed or franchised,
as well as all Carlson
Wagonlit Travel traffic.
For 2013, Carlson saw development and sales
growth in key regions around the globe, critical
acclaim for its business units and employees, and
significant contributions to the communities in
which it does business.
Overall, Carlson’s 2013 sales performance of
$37.1 billion was stable, down slightly from 2012’s
sales of $37.6 billion. Managed revenues ticked
up slightly, increasing 0.4 percent for 2013.
Carlson also continued strengthening
its leadership team in 2013 to solidify the
company’s overall direction, guide strategic
growth and accelerate the organization toward
its Vision 20/20 goals.
“Last year we celebrated Carlson’s 75th
anniversary, and we have many highlights to
recognize,” says Trudy Rautio, president and
chief executive officer, Carlson. “As we near
the end of our foundational Ambition 2015
strategy, we begin to look ahead toward our
new transformational strategy, Vision 20/20.”
BREAKDOWN BY BUSINESS
Carlson Wagonlit Travel (CWT), the world’s
largest business travel management company,
reported strong performance for its business
travel activities in 2013. The company recorded
key growth of $1.9 billion in new business sales
and the company’s specialist business divisions.
Overall sales volume decreased by 2.7 percent
to $26.9 billion—compared with $27.7 billion1
in 2012; the decrease reflected the continuing
variable global economic climate and sequestration efforts in the U.S. that have led to a reduced
demand for military and government travel. CWT
grew most in Asia Pacific, where transactions
increased by 4.5 percent year over year2,
enhanced by operations in China and Japan.
(See page 16.) Carlson Rezidor Hotel Group reported
system-wide sales of $7.5 billion, a 4 percent
increase over 2012. The hotel group drove a
strong increase in new hotel signings versus the
previous year, and 2013 was the group’s most
successful year for development globally since
2008. Overall signings increased by 43 percent
from 2012, with 66 percent of new hotel signings
and 44 percent of all new hotel openings in
rapidly growing and emerging markets, including
Brazil, China, India, Indonesia and Russia.
(See page 22.)
TGI FridaysSM, with 933 restaurants in
operation globally, reported system-wide sales
of $2.7 billion, which was flat in comparison
with 2012. Worldwide, Fridays opened 39 new
restaurants, with continued momentum
internationally, specifically in Shanghai and the
U.K. The company saw 9.4 percent revenue
growth versus 2012 in the U.K. as well as
local comparable sales growth of 3.6 percent,
improved guest counts and five store openings.
The brand also completed 38 restaurant
re-images in the U.S. (See page 40.)
A NEW VISION
In another 75th Anniversary milestone, Carlson
began deploying Vision 20/20, an evolution of
the company’s Ambition 2015 growth strategy.
Under Ambition 2015, Carlson concentrated
on business fundamentals and building core
competencies, creating a strong foundation for
new, dynamic growth. Carlson’s leadership
created Vision 20/20 to take the company to
the next level.
“Our success securely positioned us to achieve
our Ambition 2015 goals,” Rautio explains. “Having just completed 75 years in operation, Carlson
is looking back to its heritage of innovation as
Notes: 1 Actual sales volume at current exchange rates; includes
air, hotel and ground transportation for wholly-owned operations
and joint ventures. 2 Includes air, hotel and ground transportation
for wholly-owned operations and joint ventures.
we forge a strategy dedicated to the delivery of
exceptional customer experiences. The strategy
will drive development, deliver value to owners
and operators, and better align our resources.”
Under Vision 20/20, Carlson’s core values
remain the same: a caring spirit, a service heart
and a dedication to creating a lasting legacy with
a business that stands the test of time. Carlson’s
long-term goals also remain the same: to create
sustainable businesses, build shareholder wealth
and drive business growth.
Vision 20/20, however, imagines a new,
transformational way forward by putting
Carlson’s people at the center of its success
and four strategic objectives: developing talent,
fostering a culture of innovation and collaboration, being the bright spot for customers
and delivering great results. (See page 15.)
LEGACY OF LEADERSHIP
In 2013, Carlson also made a number of key
appointments to the company’s leadership teams.
On Dec. 18, 2012, Carlson’s board of directors
elected Diana Nelson as incoming chair, and
she officially assumed the position in May 2013.
Diana, who has served on the board for nearly
10 years, became only the third chair of the board,
preceded by Marilyn Carlson Nelson and the
company’s founder, Curt Carlson. “As leadership
of the company passes to the third generation,
I’m honored to continue the legacy started by
Above: Trudy Rautio, president and chief executive
officer, Carlson, provides an overview of the company’s
2013 highlights at the 2014 Radisson and Radisson Blu
Americas Conference in Minneapolis.
my grandfather,” says
Diana Nelson. “Carlson
continues to be a very
strong company. We
have the best leadership
team we’ve ever had,
and there’s an incredible
amount of momentum
in all of our businesses.
It’s an exciting time to
work with our board
and management
team to realize our
ambitions for growth
and performance.”
In addition to her role
on the Carlson board,
Diana serves on the
board of Governors
of Carlson Holdings
Inc. and the board of
directors for the Carlson
Family Foundation and
The World Childhood
Foundation. She is also a member of the Harvard
University Board of Overseers where she sits on
the Executive Committee.
Marilyn Carlson Nelson, who continues to
serve on the Carlson board, says that her
daughter’s significant governance experience
made her the ideal fit to continue providing the
steady leadership that has guided Carlson’s
success for the past two generations.
NEW FINANCE APPOINTMENT
In September, the board of directors announced
that they elected Brad Hall to Carlson’s management team as chief financial officer and treasurer,
reporting to Rautio.
Hall had been serving as interim chief financial
officer since August 2012.
“Brad has consistently demonstrated his ability
to lead and manage the finances for Carlson’s
global hospitality and travel businesses,” says
Rautio. “His long tenure with Carlson and keen
understanding of the financial complexities of
our businesses uniquely qualify him for this key
leadership position.”
Hall has been with Carlson since 1998. Prior
to assuming the interim chief financial officer
duties, he was responsible for the company’s
treasury, strategic planning and investment
analysis and risk management activities. In this
capacity, he directly led and advised on loan
transactions totaling more than $2.5 billion,
including securing the debt financing for
Carlson’s first two Radisson Blu® hotels in the
U.S. Hall also oversaw the share purchases
that secured Carlson’s majority interest in The
Rezidor Hotel Group.
Carlson Wagonlit Travel
1.9
Billion in
New Sales
+4%
Asia Pacific
Transactions
43%
Increase in
Overall
Signings
c
66%
Signings in
Emerging
Markets
TGI Fridays
39
New
Restaurants
38
Restaurant
Re-images
Carlson Highlights | 13
Inaugural Presidential
Award for Extraordinary
Efforts to Combat
Trafficking in Persons
Equality in Workplace
Women’s Foundation of
Minnesota Champion for
Equality Award
Business Unit
2012
2013
27.7
26.9
-2.7%
7.2
7.5
4%
TGI Fridays
2.7
2.7
-1.2%
37.6
37.1
-1.3%
TOTAL
Pillar II
In a competitive market for the best
talent, Carlson is finding, keeping
and growing the people who have
the potential to make exceptional
achievements. This includes fostering
the growth of internal talent by taking
full advantage of Carlson’s strong
culture of mentoring and robust
educational opportunities.
Carlson is building a culture that is
open to new ideas and systematically
identifies and capitalizes on the best
emerging concepts. In addition, with
effective collaboration a recognized
accelerator of the innovation process,
the company is enhancing collaboration
among employees and teams.
Developing Talent
Fostering a Culture of
Innovation and Collaboration
rI
Pillar IV
Delivering Great Results
Achieving its other Vision 20/20
objectives allows Carlson to deliver a
unique, positive customer experience
that differentiates the company from
competitors. This will enable the
organization to deliver strong financial
results—meeting or exceeding return
on equity targets—with strong earnings
and revenue growth.
Pil
l
Pil
l
SYSTEM-WIDE SALES (in USD billions)
Pillar I
II
ar
Snapshot: Carlson 2013 Performance
Vision 20/20 builds on the company’s foundational success with a new way
forward. The four strategic pillars of Vision 20/20 are developing talent, fostering
a culture of innovation and collaboration, being the bright spot for customers
and delivering great results.
Pil
la
Leader in AntiHuman Trafficking
Dynamic New Direction
r IV
Dave Thomas
Foundation for Adoption:
Carlson received the
number one ranking in
the hospitality and travel
industry category
Reporting to Rautio, Berg is responsible for
leading and managing the global hotel business.
He also participates in other strategic initiatives
for the company, including working with key
leaders to develop and implement their
initiatives for growth.
FORCE FOR GOOD
Carlson also made further strides as a leader
through its commitment to social responsibility.
In 2013, Carlson became the first company to
receive the Presidential Award for Extraordinary Efforts to Combat Trafficking in Persons,
recognized at a ceremony at the White House in
April. Carlson received the award for combating
modern slavery through the adoption of business
practices that seek to protect victims of human
trafficking and for encouraging the broader
business community to take a stand against
human trafficking.
“Carlson’s consistent and long-standing
efforts to combat human trafficking have made
our company a pioneer in this area,” says Marilyn
Carlson Nelson.
In March, Carlson received the Champion for
Equality Award from the Women’s Foundation of
Minnesota, a community foundation that invests
in social change to achieve equality for all women
and girls in the state. Carlson was the unanimous
choice for the award, based on its significant
number of women in upper management, its
actions to ensure that women and girls have the
chance to lead, and its dedication to building
women’s leadership in the workplace.
In September, for the seventh year in a row,
Carlson was named one of America’s top 100
adoption-friendly companies, winning a spot on
the 2013 Best Adoption-Friendly Workplaces
list by the Dave Thomas Foundation for Adoption.
Carlson again earned the number one ranking
in the hospitality and travel industry category—
another example of Carlson demonstrating its
leadership in combining a powerful business
sense and a strong social responsibility.
Pill
a
Best Adoption
Friendly Workplace
CORPORATE DEVELOPMENT
In December, Carlson appointed Tony Pellegrin
as senior vice president of Corporate Development. Pellegrin reports to Rautio and is tasked
with leading corporate development efforts as
well as leading the strategic planning process.
Pellegrin joined Carlson from Supervalu
Inc., where he served as vice president of
Corporate Development.
“Tony brings us broad experience in strategic,
financial, operational and legal matters and
experience driving a broad range of strategic
transactions and other high-impact initiatives,”
says Rautio.
Pellegrin will source and analyze potential
acquisitions, partnerships and joint ventures that
align with Carlson’s strategies and seek investment opportunities that support shareholder
objectives. He also will be instrumental in formulating long-range strategic plans for the company.
STRATEGIC GROWTH
Carlson also tapped David P. Berg as chief
operating officer for the company in December.
Most recently, Berg served as chief executive
officer and chief customer service officer for
Z Wireless, the fastest-growing reseller of Verizon
services. Previously, he worked as executive vice
president and president of Outback Steakhouse
International, with full profit and loss responsibility for more than 200 restaurants, generating
international system-wide revenues of more
than $700 million. In addition, Berg served as
chief operating officer of GNC with 7,200 retail
locations around the world and revenues of
$1.8 billion. Prior to that, he was executive vice
president and chief operating officer of Best Buy
International, leading the company’s $13 billion
international division.
“David brings to Carlson an impressive set
of leadership capabilities, including growing
businesses and leading organizations through
strategic change to deliver results and build
long-term shareholder value,” says Rautio.
III
ar
Awards &
Recognitions
Pillar III
Being the Bright Spot
for Customers
Carlson is positioning itself to compete
differently by deploying its talent and its
culture of innovation and collaboration
to be the bright spot for customers. The
company defines a bright spot as an
overwhelmingly positive experience
with one of its brands that stands out
in customers’ minds.
% Change
Notes: Sales as of Q4 2013. System-wide revenue represents total sales figure for all transactions occurring under one of Carlson’s brands whether owned, managed or franchised, as well as all CWT traffic.
Carlson Highlights | 15
At-A-Glance
Best in Class
New tools and initiatives highlight Carlson Wagonlit
Travel’s 2013 successes as the company leverages
its leadership in a growing global travel market.
Carlson Lexicon
Travel Gamification
This consulting and
technology solution
helps organizations
incentivize travelers
to stay compliant and
increase cost savings.
Travel gamification promotes improved traveler
behavior by introducing
motivating, game-like
elements to the managed
travel program. Virtual
rewards like badges and
points motivate employees to make the most
desirable choice for the
organization when faced
with multiple options all
in compliance with the
travel program.
Carlson Wagonlit Travel (CWT) reported a
strong performance in 2013. Key growth of
$1.9 billion was recorded in new business sales
and the company’s specialist business divisions,
including CWT Energy, Resources & Marine. The
company’s consulting arm CWT Solutions Group
also reported significant growth.
Among the highlights for the year, CWT’s
client satisfaction scores were particularly strong,
with a 98 percent retention rate combined with
91 percent satisfaction rate from travel managers,
as well as an 88 percent satisfaction rating from
travelers themselves.
As the global business travel management
leader, CWT is poised to capitalize on improving
markets for business travel, and it’s maintaining
that leadership pace through a series of
innovations and forward-thinking initiatives.
PRIME POSITION
CWT’s overall sales volume decreased in 2013
by 2.7 percent due to soft spots in the global
economic climate and reduced U.S. military
and government travel spending.
Longer term, however, the global business
travel market outlook is favorable. In late 2013,
the Global Business Travel Association (GBTA)
estimated that the size of the global business
travel market was projected to reach $1.12 trillion
for the year and would increase by approximately
8.2 percent in 2014 and 7 percent annually in the
period from 2015 to 2017.
Growth is predicted to continue apace in the
rapidly advancing economies of Brazil, Russia,
India and China. In addition, GBTA expects
growth in Western Europe of 5.1 percent in 2014
and 6.5 percent in 2015 with spend increasing
in all five critical European markets—the U.K.,
France, Italy, Germany and Spain—for the first
time since 2010. U.S. business travel spend is
estimated to grow 7.1 percent through 2014.
CWT is the world’s largest travel
management company, with
several specialty divisions.
+150
Countries
+19,500
Employees
1
60 Million
Transactions
2
$26.9 Billion
Traffic
3
#1 Ranked
Travel Management
Company
The CWT Solutions Group also announced it
BIG DATA TOOLS
was building a platform to engage and recognize
To position itself for further growth in this
business travelers for making decisions that
climate, CWT continued in 2013 to build on
support their corporate travel programs. CWT
its core strengths:
Traveler Gamification uses customized,
• Market leadership
competitive, game-style elements to influence
• A global presence with geographic
desired traveler behaviors.
diversity
EMPLOYEE ENGAGEMENT
• A high-quality and diverse client base
There was also a number of successful
with high retention rates
initiatives in 2013 aimed at employees. Nearly
• Online and mobile booking
Milestones for 2013 included the April launch of 90 percent of employees took the CWT
Employee Engagement Survey. Against an overall
the CWT Travel Stress Index, which uses big
engagement score goal of 80 percent, scores
data to measure the financial impact of lost
decreased slightly by 1 percentage point to
productivity incurred through trip-related stress.
79 percent, but ‘commitment to customers’ was
The tool shows that traveler-focused travel
rated very highly, as was employee sense of
policies, instead of ‘one size fits all’ policies,
accomplishment. Areas for improvement primarily
can drive down trip-related stress and improve
involved performance management and career
productivity by up to 32 percent. The CWT
development. CWT is creating robust action plans
Travel Stress Index is still receiving steady
to improve key engagement drivers.
press coverage—recently appearing in
CWT has also established robust proactive
Harvard Business Review and TIME magazine.
and reactive compliance controls and protocols,
INNOVATION IN ACTION
which are constantly monitored to ensure
In May 2013, CWT To Go, CWT’s award-winning
ongoing compliance. In 2013, the company
app, transitioned to the WorldMate platform.
enhanced its employee training and communicaSince then, the company has added new
tions with extensive training and education
functionalities, including an enhanced mobile
available for all employees. CWT also has a
check-in wizard that allows the user to drag and
proactive global compliance team and special
drop information into the airline’s mobile check-in
helpline that offer 24/7 support to address any
site and an improved share trip functionality that
questions or concerns that staff may have.
allows users to share as much or as little of their
To support CWT’s efforts in driving an ethical
trip via email as they like—from the whole trip to
culture, the company created a number of tools
individual components or developments related
for CWT staff, including Web-based training for
to a specific trip. In 2013, the CWT To Go app
employees and Compliance Minis—short,
reached its goal of 158,000 downloads.
In August, CWT announced it had strengthened focused training programs provided to managers
to help to them continue to drive the ethical tone
its reseller agreement with KDS—a leading
and compliance culture at CWT.
international provider for business travel and
expenses claims management software—offering the
ability to resell KDS Neo
Service First Culture
globally. This door-to-door
booking solution delivers
complete, bookable
itineraries and predicts
related expenses. In addition
to KDS Neo, CWT now
provides KDS Expense
Management around the
world. Building on CWT and
KDS’ successful relationship
in Europe, the Middle East
and Africa, CWT will work
with KDS to help strengthen
its capabilities in the North
American and Asia Pacific
markets and will explore
integration opportunities with
other CWT products and
services like CWT To Go.
CWT
Awards &
Recognitions
CWT To Go
Best mobile strategy at
the EyeforTravel Mobile
Innovation Awards 2013
CWT Subsidiary
WorldMate
Best mobile app at
the EyeforTravel Mobile
Innovation Awards
2013 for the second
consecutive year
CWT Travel Stress Index
GBTA project ICARUS
Europe travel supplier
outstanding achievement
award 2013
98%
Client
Retention
Rate
Notes: 1 Employees in CWT’s wholly owned operations.
2 Including JVs. 3 Year-end results for 2013.
Carlson Wagonlit Travel | 19
Delivering Travel Solutions
CWT Executive Team
Organizations use CWT’s professional services to manage corporate travel programs,
design programs and policies to meet client needs, reduce spending, negotiate with
preferred partners and enhance safety and security.
Carlson Wagonlit Travel’s experienced leadership is guiding the company’s strategic growth.
Business Travel Industry Value Chain
1
3
Clients pay
TMCs fees
GDSs pay
net fees to
TMCs
Clients
Corporations,
governmental and
non-governmental
organizations
Douglas Anderson
Part of
supplier
revenue
Travel
Management
Companies
(TMCs)
President and Chief Executive
Officer
Global
Distribution
Systems
(GDSs)
Suppliers
pay fees to
GDSs
Suppliers
Airlines, hotels, car
rental companies, etc.
Amadeus, Sabre,
Travelport, etc.
CWT, AMEX,
Business Travel, etc.
Jerry Hogan
Jean-Luc Duchemin
Executive Vice President
and General Counsel
Marketing-related payments
and commissions to TMCs
Executive Vice President,
Global Human Resources
2
CWT Revenue Generation Model
Clients
Suppliers
GDSs
58%
33%
9%
2013 Revenues
Stable relationships

Management fee contracts: include both reimbursement
of certain direct costs as
well as an additional charge covering indirect costs and margin

2013 Revenues
Value-added contracts (fees for certain marketing-related services)

Commissions

2013 Revenues
Cathy Voss
Global Program Solutions
and Meetings and Events
Andrew Waller
President,
EMEA and Global
Partners Network
Patrick Andersen
President,
Americas
Kelly Kuhn
President,
Asia Pacific
Revenues primarily based
on booking transactions on GDS platform

CWT has ability to move booking between GDSs

Transaction fee contracts:
per transaction basis

Berthold Trenkel
Traveler Services
Kevin O’Connor
and Chief Information
Officer
David Moran
Marketing and Enterprise
Strategy
Martine Gerow1
and Chief Financial Officer
Notes: 1 Appointment as of July 8, 2014.
Carlson Wagonlit Travel | 21
Global Hotel Overview
At-A-Glance
Coming on Strong
Carlson Rezidor continues its momentum, with gains
in revenue, development and global initiatives
designed to enhance the guest experience.
Carlson Lexicon
Global Distribution
System (GDS)
A network used as a
global point of access
to reserve hotel rooms,
airline tickets, rental cars
and other travel-related
items by travel agents,
online travel agents
(OTAs) and other
organizations. GDSs
allow users to purchase
tickets from multiple
providers. Examples of
major GDSs include
Sabre and Amadeus.
Fueled by investments in its brands and
programs to increase guest satisfaction,
2013 was a banner year for Carlson Rezidor
Hotel Group. The hotels business drove a strong
increase in new hotel signings in 2013, making
the year the most successful for development
globally since 2008. Additionally, the hotel
group’s system-wide revenue increased
4 percent to $7.5 billion in 2013.
The company also launched significant program introductions and saw significant investments across all of its award-winning brands,
making progress in multiple key performance
indicators. (See following pages for 2013
region-specific milestones.)
YEAR OF GROWTH
Overall Carlson Rezidor’s signings increased
by 43 percent from 2012, with 66 percent of
new hotel signings and 44 percent of all new
hotel openings in emerging and rapidly growing
markets in countries that included Brazil, China,
India, Indonesia and Russia. The Americas and
Asia Pacific in particular saw dramatic signings
growth, with increases of 111 percent and
71 percent, respectively. In Europe, the Middle
East and Africa, the group signed 33 new hotels,
adding more than 6,900 rooms; 35 percent of
those rooms will open by the end of 2015.
Bolstering revenue totals, Carlson Rezidor
also made a number of strides forward with
progressive revenue-generation initiatives.
In one such effort, Carlson Rezidor led the
hotel industry’s efforts to enhance the guest
experience while boosting productivity through
e-commerce innovation. In December, Carlson
Rezidor partnered with Google to launch pilot
programs for its full portfolio of travel applications, including Google Hotel Finder, Google
Business Photos, Google Wallet, Google Indoor
Maps and Google Mobile Click-to-Call.
With its leading brands and
extensive portfolio, Carlson
Rezidor is one of the world’s
largest hotel groups.
+105
Countries
+1,340
Hotels
in operation and under development
$1.6 Billion
Managed Revenue
+88,000
Employees
In doing so, Carlson Rezidor became the first
hotel group to offer or to pilot test all of the
Google technologies at once.
Since the launch of the company’s online
strategy four years ago, Carlson Rezidor has
driven global Web revenue increases of
26 percent—in 2013, Web revenue increased
4 percent. Mobile revenue continued its strong
trajectory with 68 percent growth in 2013 year
over year.
In 2013, the award-winning Club CarlsonSM
loyalty program grew to nearly 12 million
members, more than doubling in size in the
last four years. The Club Carlson mobile app
saw a 171 percent increase in traffic and a
62 percent growth in revenue year over year.
Overall, Carlson Rezidor drove 65 percent
of room revenue to its brands via direct booking,
digital channels and the Global Distribution
System (GDS); this represents an increase of
4 percent over 2012.
In addition, 2013 saw the launch of one of
Carlson Rezidor’s most exciting initiatives in
the Customer Experience Project. As part of
the project, Carlson Rezidor partnered with
leading consumer research firm GfK to better
understand the overall guest experience
by conducting extensive qualitative and quantitative research and analysis. The objective is
to gain insights on the rapidly changing preferences of guests and define crucial touch points
along the guest journey where properties can
enhance guest stays and create unique,
memorable experiences.
RADISSON BLU®
In 2013, Radisson Blu added another chapter
to its phenomenal growth story, maintaining its
position as Europe’s largest upper-upscale hotel
brand and opening another round of properties
in key global markets, including the Radisson
Blu Resort & Congress Centre Sochi, a host
hotel of the 2014 Winter Olympics. In other key
openings, Carlson Rezidor also unveiled the
Radisson Blu Hotel, Kuwait, the Radisson Blu
Hotel, Maputo/Mozambique and the Radisson
Blu Chongqing Shapingba, China.
In March 2013, the brand established a
presence near its world headquarters with the
Radisson Blu Mall of America in Bloomington,
Minnesota. Later in the year, the $20 million
renovation and conversion of the Radisson
Blu Warwick Hotel, Philadelphia in November
marked the third Radisson Blu hotel in the
United States, continuing the expansion of
the brand’s footprint in the Americas.
Radisson Blu also revealed its new global
Experience Meetings concept at the 2013 IMEX
show, one of the largest global conferences for
meetings and events professionals. Developed
as a means to improve the effectiveness of
meetings, Experience Meetings places a strong
emphasis on innovations in food and beverage
and changes to the spatial environment as well
as advancements in meeting technology.
Brain Food, the culinary component of the
program, offers an elevated catering menu that
increases concentration and reduces fatigue
through food. Brain Box, the environmental
Carlson Rezidor
Awards &
Recognitions
Club CarlsonSM
Loyalty Campaign of
the Year at the 2013
Mega Awards
Radisson Royal
Hotel, Moscow
World’s Leading Luxury
Business Hotel 2013 at
the World Travel Awards
The Rezidor
Hotel Group
One of the World’s Most
Ethical Companies,
awarded by U.S. think
tank Ethisphere to
Rezidor for the fourth
consecutive year
as of Q4 2013
66%
Signings in
Emerging Markets
12 Million
Members of
Club CarlsonSM
10th Largest
Snapshot: Surge in Signings
Compared with the previous year, Carlson Rezidor drove a strong increase in new hotel
signings, making 2013 the most successful year for development globally since 2008.
+43%
Overall
Signings
AMERICAS
+111%
ASIAPAC
+71%
Global Hotel Company
Carlson Rezidor Hotel Group: Overview | 25
component, boosts creativity and inspires
active engagement based on different learning
styles. The program has been recognized and
certified by the Green Meetings Industry Council
(GMIC) and features the Meetings Minus Carbon
program, which provides automatic CO2 offset
benefits to event planners.
RADISSON®
Additionally in 2013, the Radisson brand’s
major property improvement, renovation and
investment strategy, as well as its overall brand
repositioning for hotels in the U.S. and Canada,
continued apace with a majority of its hotels
renovated and the remaining properties on
track for completion by the end of 2014.
The brand also undertook a significant pilot
project to explore opportunities to innovate
many touch points of the guest experience.
Called Radisson Re-Imagined, the national
pilot evaluated new ways to enhance the guest
experience, highlighted by establishing a new
mobile and online check-in option; launching the
Radisson iConcierge, an on-property concierge
smartphone application; and the launch of
an in-hotel charity program and new bath
amenities, among additional enhancements.
Radisson began rolling out the new program
elements in October.
Significant openings for the brand included
the new Radisson Hotel & Conference Centre
Calgary Airport East with 120 spacious, urban
chic-styled guest rooms and views of the
Canadian Rockies. The new Radisson Hotel
JFK Airport provided the brand with a key
location near New York City.
PARK PLAZA®
Carlson Rezidor Hotel Group’s upscale
full-service brand, Park Plaza, continued its
development plans in China, Germany, India
and the U.K. More than $22 million has been
allocated to improve and renovate hotels in the
U.K. and the Netherlands. The brand is growing
its footprint significantly in Asia with 10 hotels
under development. Five of those hotels are
in India and five are in China. Three are slated
to open in 2014.
PARK INN® BY RADISSON
Carlson Rezidor’s fresh and energetic upper
midscale hotel brand created for fast and
flexible growth, Park Inn by Radisson, opened
its first hotel in the Philippines; the Park Inn
by Radisson Davao was the first to feature the
brand’s “next generation” design in Asia Pacific.
In Europe, the Middle East and Africa, 41 percent
of the 6,900 rooms signed in 2013 were under
the Park Inn by Radisson brand.
The brand also launched Smart Meetings
& Events, a concept designed to deliver smart
food, drinks, event spaces and technology to
support guests’ life and work styles and ensure
meeting planners a successful event.
COUNTRY INNS & SUITES BY CARLSONSM
Country Inns & Suites By Carlson unveiled an
entirely new look in 2013 when it launched a
new brand identity and a new generation
hotel prototype. This was the first time in the
brand’s 25-year history that it has been completely redesigned to include new architecture,
interior aesthetics and visual identity.
The brand implemented its new logo at
the 2013 Country Inns & Suites Business
Conference and began rolling out new elements
of the brand identity across the entire portfolio.
In November, the updated hotel architecture and interiors made their debut in a new
Gen4 opening in Springfield, Illinois. The new
prototypes feature a clean, contemporary look
combined with the iconic design elements of
Country Inns & Suites. The new architectural
design will allow the brand to expand in a
greater variety of areas and locations, including
more urban markets, and it’s intended to resonate with loyal guests as well as today’s younger,
technology-focused business travelers.
Above, Country Inn & Suites By Carlson, Springfield, Illinois
Opposite, clockwise from top left, Radisson Blu Hotel,
Istanbul Pera; Radisson Blu Warwick Hotel Philadelphia;
Park Inn by Radisson Davao, Philippines; Park Plaza
Sukhumvit Hotel, Bangkok
Americas
On the Upswing
In the Americas, Carlson Rezidor is primed for
continued momentum following a successful year.
“We must
always keep
the guest at the
center of
our decisions.”
–David P. Berg, Chief
Operating Officer, Carlson
For 2013, the story of Carlson Rezidor Hotel
Group, Americas, was one of strong turnaround growth. At the same time, the theater
made significant progress with several initiatives
to increase guest satisfaction metrics and
establish a compelling positioning for each brand.
ACCELERATING DEVELOPMENT
After clawing back from the economy’s extended
recovery from the 2008/2009 recession, the
Americas theater saw strong growth for the year
with 4,200 rooms opened, 5,400 rooms signed
and 6,400 under development. The signings
represented a 111 percent increase from 2012.
The group continued to expand into new
markets with openings in new and exciting
destinations, including Barbados and Grenada.
In October, Carlson Rezidor became Brazil’s
largest international upscale operator with the
addition of the Radisson Hotel Rio de Janeiro
and the Radisson Hotel São Paulo Vila Olimpia.
The hotels brought the group to 10 hotels and
more than 1,800 rooms in operation in this
rapidly growing market.
In March 2013, the brand made a big impact
in its own backyard with the Radisson Blu Mall
of America in Bloomington, Minnesota. The
500-room upper-upscale hotel houses the
FireLake Grill House & Cocktail Bar, which
features regional cuisine. The hotel offers the
only accommodations directly connected to
Mall of America®, the U.S.’s largest indoor
entertainment center and shopping mall.
Later in the year, the $20 million renovation
and conversion of the Radisson Blu Warwick
Hotel, Philadelphia in November marked
the opening of the fourth Radisson Blu® hotel
in the Americas, joining the Radisson Blu Mall
of America, the Radisson Blu Aqua Hotel,
Chicago, and the Radisson Blu Resort
Marina & Spa, St. Martin.
The company also announced a conversion
of the Radisson Plaza Hotel Minneapolis to its
upper-upscale brand. Carlson Real Estate solidified an arrangement with Chartres Lodging Group
LLC to acquire the hotel, with Carlson Rezidor
entering into a long-term management contract.
The renovation was completed in 2014, continuing the brand’s significant momentum.
RENOVATION PROGRESS
The Radisson® revitalization strategy, aimed
primarily at Radisson hotels in North America
to reposition the brand for growth and global
alignment, continued on track in 2013, nearing
completion with 75 percent of hotels renovated
since 2010 and the remaining 25 percent on
track for completion by the end of 2014.
Reflecting this progress, Radisson received the
most improved J.D. Power ranking in the upscale
hotel segment, gaining 34 points in overall guest
satisfaction. In addition, in the 2013 Business
Travel News Hotel Chain Survey, Radisson saw
the biggest increase in the upscale tier and led
in the Meetings Facility category.
MIDSCALE SUCCESS
For Country Inns & Suites By CarlsonSM, the unveiling of a dramatic new brand identity and the
launch of a new Gen4 hotel prototype designed
to appeal to modern travelers was a key highlight
of 2013. The first new prototype opened in
Springfield, Illinois, later in the year, and a number
of new hotels are under development. More than
75 hotels are either actively renovating or in the
planning stage for Gen4 renovations.
In addition, the brand continued its progress
toward revenue objectives. Boosting midweek
Revenue Generation Index (RGI) was a 2012
goal, and the metric sharply increased for 2013.
Carlson Rezidor’s sales teams also drove impressive revenue growth for Country Inns & Suites.
In addition, email revenue grew 533 percent
between 2009 and 2013, while the brand
website’s revenue delivery grew 60 percent.
The progress has not gone unnoticed: In the
2013 Business Travel News Hotel Chain Survey,
Country Inns & Suites moved from the number
eight ranking up to fourth in the competitive
midprice category.
Opposite Page, The $20 million renovation and conversion
of the Radisson Blu Warwick Hotel, Philadelphia in November
2013 marked the fourth Radisson Blu® hotel in the Americas.
The stylish, historic hotel is located in Rittenhouse Square in
the heart of downtown Philadelphia.
At-A-Glance
Executive Team
Carlson Rezidor, Americas is positioned to build on a successful 2013 as hotel
demand is forecasted to continue outpacing available supply. The favorable
economics set the stage for continued strong growth in 2014 and beyond.
1
U.S. lodging industry 20-year change in supply and demand
Carlson Rezidor Hotel Group is led by a proven management team.
2
$2.3 Billion
8.0%
System-wide
Revenue
6.0%
David P. Berg
Chief Operating Officer,
Carlson
4.0%
615
2.0%
Hotels in
Operation
0.0%
-2.0%
53
-4.0%
Hotels under
Development
-6.0%
Supply
Demand
2015F/C
2014F/C
2013
2011
2012
2010
2009
2007
2008
2006
2005
2004
2003
2002
2001
1999
2000
1998
1997
1996
-8.0%
Thorsten Kirschke
President, Asia Pacific
Javier Rosenberg
Bob Kleinschmidt
Strategic Initiatives and
Investments
Hotel Signings
2013
Cindy Rodahl
Radisson® Hotels
Renovated Since
2010
Chief Branding Officer
38
Human Resources and
Communications
75%
Gordon McKinnon
Radisson, Americas, and
Managed Hotels
Mike Andrew
General Counsel
Suzy Riesterer
Chief Commercial
and Financial Officer
+4
Rankings, Country Inns &
Suites By CarlsonSM, 2013
Business Travel News
Notes: 1 Americas excludes Asia Pacific and Europe, the Middle East and Africa; all snapshot figures based on 2013 data and dollar amounts in USD. 2 U.S. lodging industry 20-year change
in supply and demand chart data sourced from Smith Travel Research; recessions indicated in gray shading are March 2001 through June 2002 and December 2007 to June 2009.
Carlson Rezidor Hotel Group: Americas | 31
Asia Pacific
On the Rise
In rapidly growing Asia Pacific, Carlson Rezidor
continued its strong momentum.
Leadership
Thorsten Kirschke
President, Asia Pacific,
On March 17, 2014, Carlson Rezidor Hotel
Group appointed Thorsten Kirschke to
the role of president of the group’s Asia
Pacific region. He reports to David P.
Berg, chief operating officer, Carlson.
For the four years prior to his Asia
Pacific appointment, Kirschke led
Carlson Rezidor as president of the
Americas. Kirschke’s achievements
included the articulation and successful
execution of the long-term turnaround
strategy under Ambition 2015.
Kirschke, born in Hannover, Germany,
is a hospitality veteran with more than
25 years of experience in various
positions around the world. Prior to
joining CarlsonSM in 2009, Kirschke was
executive vice president and chief
operating officer for The Rezidor Hotel
Group based in Brussels, Belgium.
Carlson Rezidor Hotel Group, Asia Pacific,
celebrated a number of 2013 milestones
under Carlson’s Ambition 2015 strategy.
The company’s strategy in Asia Pacific
concentrated on three pillars: accelerated and
profitable development, winning the revenue
battle and building organizational capabilities.
DRIVING DEVELOPMENT
Capitalizing on rapidly growing market
opportunities in the theater, Carlson Rezidor
opened seven new Asia Pacific hotels in
2013, including the Radisson Blu Chongqing
Shapingba in China and the Park Inn by
Radisson Davao in the Philippines.
By the end of the year, Carlson Rezidor had
expanded its total to more than 90 hotels in
Asia Pacific, including 40 Radisson Blu®
hotels. The group also continued its strong
development momentum with 29 signings—
including 15 in India and five in China.
Carlson Rezidor formed new strategic
partnerships in 2013 and continues to build
strong platforms for multiple hotel growth. These
relationships are accelerating the company’s
development plan and putting it on track to
double its portfolio in the next seven years.
In March, the company signed a joint venture
agreement with Panorama Group to develop
20 Radisson® and Park Inn® by Radisson
hotels in Indonesia over the next seven years.
In October, Asia Pacific announced a new
development agreement with SM Hotels and
Conventions Corporation for the Park Inn by
Radisson Clark in Pampanga, Philippines, and
an additional five locations in the future.
Building on its strength across India, Carlson
Rezidor has established a presence in most
capital cities across the country. In 2013, the
company continued to cement its leadership
position in this important market.
Carlson Rezidor opened five hotels in
India in 2013, and the company expects
further additions of new hotels as a result of
its partnership with Bestech Hospitalities. As
part of this partnership to develop 49 Park
Inn by Radisson hotels, six management
agreements were executed in 2013.
REVENUE GENERATION
Carlson Rezidor was also successful in driving
more business into existing hotels despite an
economic slowdown in India and China. The
company saw revenue gains, increases in room
nights and strong Revenue Generation Index
(RGI) performance of 103.4 in 2013.
Throughout the year, various platforms
were developed for hotels to optimize their
revenue-generation activities. These included
new partnerships, the execution of tactical and
cross-regional promotions, digital media and
e-commerce campaigns and the continuous
drive to grow the loyalty program in Asia Pacific.
Highlights from the theater also included the
celebration of Radisson Blu Day in September;
the launch of Radisson Re-Imagined, Park Inn by
Radisson NexGen and the Country Inns & Suites
By CarlsonSM brand’s new visual identity; and
driving in-market localization for Park Plaza.
In Market Matrix’s ranking of the top 10 Asia
Pacific hotel brands, Radisson won the number
one spot for satisfaction.
PEOPLE DEVELOPMENT
As part of the focus to develop the capability
of its people, Carlson Rezidor Asia Pacific
equipped its hotel commercial and finance leads
with the right tools and skills to succeed through
the launch of the Revenue Generation Academy
and Finance Academy in India and China in 2013.
The theater also made strides with its
HiPotential Program for future general
managers. The HiPotential program creates an
infrastructure to grow the company’s leadership
talent base and develop succession plans at
the hotel executive level, ensuring that our
leadership talent base grows in tandem as the
company continues its growth in Asia Pacific.
At the same time, it fulfills the company’s
commitment to employees to develop and
retain talent.
Opposite, Radisson Blu Hotel Pudong Century Park, is located
in the heart of Pudong, in Shanghai, China, and features easy
access to the Shanghai New International Expo Center, Pudong
Airport and the Pudong Lu Jia Zui Finance and Trade Zone.
At-A-Glance
Executive Team
Carlson Rezidor, Asia Pacific is driving steady development in high-growth
markets such as China, India, Indonesia and Thailand. In India, Carlson Rezidor
is the leading international hotel group in the country.
1
A seasoned international team leads Carlson Rezidor’s growth in Asia Pacific.
Planned Development
Carlson Rezidor in Asia Pacific has been achieving strong growth momentum
through strategic alliances. In 2013, the company created partnerships with
David Berg
Bestech Hospitalities in India, Panorama Group in Indonesia and SM Group
Carlson
in the Philippines to develop nearly 100 hotels in these three markets. These
partnerships resulted in 13 signed deals in 2013.
91
Hotels in
Operation
Thorsten Kirschke
INDIA
Park Inn® by
Radisson: 49
INDONESIA
Radisson® &
Park Inn by
Radisson: 20
President, Asia Pacific
93
PHILIPPINES
Park Inn by
Radisson: 27
Hotels under
Development
29
Hotel Signings
2013
Signings by Region
Franck Courmont
General Counsel
Joanna Ong
Director, Public Relations
and Communications
Scott Bryce
Andreas Flaig
Vice President,
Corporate and
Hotel Finance
Development
Rest of Asia
9
China
5
2013
India
15
as of Q4 2013
Peter Tudehope
Regional Manager,
Australia/Pacific/Japan
Notes: 1 Asia Pacific excludes the Americas and Europe, the Middle East and Africa; all snapshot figures based on 2013 data and dollar amounts in USD.
Winston Chien
Vice President, China
K.B. Kachru
Chairman, South Asia
Raj Rana
Chief Executive Officer,
South Asia
Andre de Jong
Vice President,
Operations, South
East Asia
Thomas Hagemann
Vice President,
Future Openings
and Special Projects
Carlson Rezidor Hotel Group: Asia Pacific | 35
Europe, Middle East, Africa
Global Leader
Building on a strong legacy, The Rezidor Hotel Group
is set to further drive its business and deliver on targets.
Leadership
Wolfgang M. Neumann
President and Chief Executive Officer,
The Rezidor Hotel Group
Wolfgang M. Neumann was appointed
to lead The Rezidor Hotel Group as
president and chief executive officer
in 2013.
Prior to his work at Carlson Rezidor
Hotel Group, Neumann spent more than
20 years with Hilton International,
building his career from general
manager positions at Hilton hotels in
Brussels, London, Paris and Frankfurt to
serving as vice president Western and
Northern Europe. He also served as
senior vice president Scandic/Nordic
Region, president U.K. and Ireland, and
president, Hilton Europe and Africa.
Before joining Rezidor in May 2011
as chief operating officer, he served as
chief executive officer for Arabella
Hospitality and was a member of the
supervisory board of Schoerghuber
Holding Group in Munich, Germany.
CarlsonSM is the owner of The Rezidor Hotel
Group’s core brands and is also its majority
shareholder with 51.3 percent of ownership.
Rezidor, which trades on the Swedish stock
exchange, is recognized throughout Europe,
the Middle East and Africa (EMEA) for its
unique Yes I Can! SM guest service philosophy.
Building on this strong legacy, the company is
now focusing on improved profitability. Through
asset-light, fee-based and sustainable growth,
Rezidor aims to increase earnings before interest,
taxes, depreciation and amortization (EBITDA)
margin by 6 to 8 percent by 2015. The company
is well on track with progress under its Route
2015 turnaround program.
GAINING MOMENTUM
For 2013, Rezidor’s EBITDA margin increased
by 3.3 percentage points to 8.8 percent, and all
Route 2015 areas delivered on or above target.
Company efforts in revenue generation resulted
in a strong market share increase for Radisson
Blu® and Park Inn® by Radisson. Rezidor also
achieved revenue per available room (RevPAR)
growth across all geographic regions, and it
reported the highest increase among all its peers.
Rezidor’s growth continues to concentrate on
the emerging markets of Russia/CIS and Africa,
and the company defines Russia, Nigeria, Saudi
Arabia and Turkey as key focus countries. More
than 90 percent of Rezidor signings last year
represented projects in emerging markets, and
60 percent of all projects are located in its key
focus countries.
External market conditions are showing
continued signs of improvement in the theater,
and international tourist arrivals are rising: From
January to October 2013, the World Tourism
Organization reported an increase of 5 percent.
Rezidor’s strong portfolio and market focus will
yield additional development opportunities.
Rezidor’s total signings were in line with
the previous year and on target. The number
of hotels opened lagged slightly behind due
to the focus on emerging markets where delays
occur more often than in mature markets.
An accelerated conversion strategy and a
re-defined management process from hotel
signing to opening helped Rezidor to cover
and minimize such risks.
The company’s organization optimization
process is delivering clear results and Rezidor is
in line to deliver the targeted cost reductions of
EUR 13 to 15 million through a streamlined and
decentralized business model.
Asset Management became a crucial
contributor to the company’s turnaround: The
newly created department is optimizing the lease
portfolio in the Nordics and Rest of Western
Europe and reported an EBITDA margin impact
of 1 percentage point through the exits from
unprofitable leases and the restructuring of
profitable leases over the past two years.
LAUNCH OF 4D
Building on the principles of Route 2015 and
Rezidor’s mission of providing unique Yes I Can! SM
service, in 2013 the company also launched its
4D Strategy, which has four fundamental pillars:
Develop Talent, Delight Guests, Drive the
Business and Deliver Results.
The strategy clearly outlines Rezidor’s priorities
and defines specific focus areas in pursuit of the
company’s vision to be perceived as the most
passionate team of hoteliers, the most innovative
and responsible organization, the most dynamic
hotel company in EMEA, and the preferred hotel
company to invest in and to do business with.
4D is designed as an engaging and empowering
business approach where every team member
at hotel, area and corporate levels plays a role
in bringing 4D to life and in working towards the
company’s objectives.
Other Rezidor highlights include the launch
of the company’s first employee value proposition, Our Promise, and the announcement of
the Women in Leadership project, targeting
having 30 percent female representation among
company leaders by 2015.
Opposite, The 265-room Radisson Blu Riverside Hotel,
Gothenburg in Sweden opened in the first quarter of 2013.
The stylish hotel features dynamic meeting spaces, a location
in the bustling Lindholmen Science Park and convenient
access to other attractions in Gothenburg.
At-A-Glance
Executive Team
The Rezidor Hotel Group is one of the fastest growing hotel companies in the world
and a member of the Carlson Rezidor Hotel Group. Rezidor operates the core brands
Radisson Blu® and Park Inn® by Radisson in Europe, the Middle East and Africa.
Targeted Growth Strategy
Rezidor growth continued to concentrate on the emerging markets of Russia/CIS
and Africa, and the company’s key focus countries of Russia, Nigeria, Saudi Arabia
and Turkey. More than 90 percent of Rezidor signings last year represented
The Rezidor Hotel Group’s leadership team has extensive experience in global hospitality.
€919.5 Million
Managed Revenue
Wolfgang M. Neumann
President and Chief
Executive Officer
projects in emerging markets, and 60 percent of all projects are located in key
+5.8%
focus countries.
90%
60%
Signings in
Key Focus
Countries
Signings in
Emerging
Markets
Like for like
RevPAR Growth
337
Hotels in
Operation
Knut Kleiven
Deputy President
and Chief Financial
Officer
Olivier Harnisch
and Chief Operating
Officer
Eric De Neef
and Chief Commercial
Officer
Elie Younes
Senior Vice President
and Head of Group
Development
Michael Farrell
Senior Vice President,
Human Resources
92
Hotels under
Development
Signings by Brand
Radisson Blu
55%
Park Inn
by Radisson
45%
Signings by Region
Rest of Western
Europe
14%
Middle East
and Africa
32
Hotel Signings
2013
Marianne Ruhngaard
General Counsel
39%
Eastern
Europe
47%
€80.7 Million
EBITDA
Richard Moore
Area Vice President,
U.K. and Ireland
Notes: All snapshot figures based on 2013 data.
Eugene Staal
Technical Development
Thomas Engelhart
Nordics
Michel Stalport
Western Europe and
Northwest Africa
Willem van der Zee
Central Europe
Tom Flanagan
Eastern Europe
and Russia
Mark Willis
Middle East and
Sub Saharan Africa
Carlson Rezidor Hotel Group: EMEA | 39
TGI Fridays
TGI Fridays
TGI Fridays
At-A-Glance
Industry Icon
TGI FridaysSM continues moving ahead—by keeping the
brand relevant for guests, maintaining its employee
focus and expanding into untapped markets.
Carlson Lexicon
Net Promoter Score
NPS is a customer loyalty
metric that is based on
survey responses to the
question: “How likely is
it that you would recommend our company to a
friend or colleague?” The
answers are based on a
0 to 10 scale. Promoters
are those who respond
with a score of 9 to 10
and are considered loyal
enthusiasts. Detractors
are those who respond
with a score of 0 to 6.
NPS is calculated by subtracting the percentage
of detractors from the
percentage of promoters.
Despite a casual dining industry still facing
challenging economic headwinds stemming
from the 2008/2009 recession, TGI Fridays
maintained stable sales performance in 2013.
The brand continued introducing dynamic
programs and driving key metrics that are
evolving the brand and positioning the
company for future growth.
In 2013, Carlson’s restaurant business
reported system-wide sales were down slightly
at $2.7 billion year over year. At the same time,
the company drove its restaurant re-imaging
program and international growth; introduced
a new, refreshed logo; continued to refocus
the menu with new offerings; and continued
initiatives to maintain a leadership position in
employee development.
NEW LOOKS
TGI Fridays remains a well-established brand
presence as one of the United States’ top 10
casual dining chains. The number of U.S. units
declined slightly in 2013 and average unit volume
(AUV) remained flat. U.S. comparable sales and
traffic were negative, but U.S. units saw improvements in average margin per guest, driven by
effective promotions, reduced discounting and
the brand’s refocus on bar sales.
Keeping its restaurants relevant and
fresh for guests, TGI Fridays is rolling out
a multi-year re-imaging campaign and has
completed 38 restaurant re-images to its
U.S. locations in 2013. The latest prototype
features a fresh, contemporary design that
elevates the bar experience, making it the
center of activity and unleashing the fun and
engaging corner bar vibe that retains the
brand’s nearly 50-year heritage.
Overall, the brand has re-imaged more than
50 restaurants, and it’s seeing a 50 percent
improvement in sales in the locations that
Founded in 1965, TGI Fridays
has grown to become one of
the world’s leading American
casual dining restaurant chains.
+930
Restaurants
+60%
Franchised
60
Countries
+70,000
Employees
+2.7 Billion
System-wide
Revenue, USD
#1 Ranked
International
Presence
have been re-imaged compared with those
restaurants’ sales prior to the re-imaging. Newly
designed restaurants have recently opened in
key markets including Boston, Dallas-Fort Worth,
Orlando, Miami and Washington, D.C.
GLOBAL GROWTH
Worldwide, Fridays opened 39 new restaurants
in 2013, with continued momentum internationally,
specifically in the U.K. and Shanghai. TGI Fridays
opened its doors in three new countries with
restaurants in Bolivia, Sri Lanka and Pakistan. The
company continues to see significant opportunity
ahead in international markets.
In its international business, TGI Fridays has
an unmatched presence among U.S. casual
dining brands, with nearly 50 percent more
units than its nearest competitor. Overall,
the brand’s number of international units,
system-wide AUV and system-wide sales
all continued upward growth trends in 2013.
In the U.K., TGI Fridays is enjoying robust
performance. It’s the leading casual dining
brand in the U.K., and momentum continued
in 2013 with increases in number of units,
AUV and net revenue. TGI Fridays also
continued to outperform the industry in the
U.K. in same store sales.
In addition, TGI Fridays continued to leverage
its brand equity as a licensor of retail food
and beverage products. In the frozen snack
category, Fridays remains the largest brand.
Licensing revenue was relatively flat in 2013
but continues to provide the company with a
high-margin revenue stream.
GUEST FOCUS
In 2013, TGI Fridays also embarked on a journey
to evolve and contemporize the brand through
the launch of its new logo. The new Fridays logo
is based on the premise of using only the very
best ingredients in a simple recipe for maximum
taste and presentation, and the contemporary
design complements the brand’s growth and
energetic vibe.
TGI Fridays also continued rolling out its Best
Corner Bar In Town concept via a focus on
great People, Place, Product and Promotions.
In addition to Place-focused initiatives with
restaurant re-images and Promotion initiatives
that reduce discounting combined with more
effective value offerings, the brand continued
to develop its People in 2013 with employee
training initiatives created to help team
members deliver unique experiences tailored
to each guest’s needs. The Fridays Service
Style program—conducted through Stripes U,
the company’s online university—is elevating
team capabilities and driving increased guest
engagement.
The brand is also enhancing its Product by
refocusing its menu on handcrafted, fresh food
offerings that provide good value for customers
and are profitable for the company. New menu
items for 2013 included the Taste & Share Menu
and Stacked Burgers and Wine Menus.
Introduced in October, the burger menu
includes a trio of Stacked Burgers, showcasing two fresh, 100-percent USDA Choice beef
burger patties served with freshly baked,
Leading Position
in the U.K.
Market Growth
TGI Fridays has created
a leadership position
in the U.K. by providing
a highly differentiated
experience from local
and chain restaurants.
The brand’s restaurants
are recognized across the
country for high-quality
service and food. In 2013,
TGI Fridays continued its
2012 momentum with
local comparable sales
growth of 3.6 percent
and improved guest
counts. The brand also
saw a nearly 10 percent
portfolio growth in the
U.K. and more than
9 percent growth in
revenues.
Snapshot: U.S. System NPS Trend
In the U.S., TGI Fridays net promoter scores (NPS) rose to an all-time high in 2013, proving that
the company’s focus on People, Place, Product and Promotions—with initiatives such as new
menu items and re-imagined restaurants—was resonating with guests.
85
80
75
70
65
JAN
FEB
MAR
APR
MAY
JUN
2012
JUL
AUG
SEP
OCT
NOV
DEC
2013
TGI Fridays | 43
TGI Fridays Executive Team
Snapshot: Store Unit
and Contribution Mix
Fridays’ proven management team has deep experience in the restaurant industry.
With a truly global footprint,
TGI Fridays enjoys a strong
U.S. presence as well as the
strongest international presence
among U.S. casual dining brands.
Geographic Location
United
Kingdom
Nick Shepherd
President and Chief Executive
Officer, TGI Fridays
6%
United
States
56%
International
37%
Contribution Mix
United
States
55%
International
45%
Franchise Mix
Company
36%
Franchised
64%
brioche-style buns. The Stacked Burgers feature
premium ingredients such as peppered bacon
and house-made onion bacon jam as well as
vine-ripened tomatoes.
Earlier in April, the brand introduced its
new Taste & Share menu featuring seven
smaller-sized, lower-priced selections, allowing
customers to sample multiple dishes and share.
The Taste & Share menu emphasizes handprepared dishes with bold, fresh ingredients
and sauces like sriracha aioli, wasabi ranch
and craft beer cheese. The menu is complemented by a new selection of regional craft
beers and three new innovative scratch-made
cocktails featuring premium liquors and unique,
fresh ingredients.
Proving that the Fridays brand’s focus is
resonating with customers, 2013 guest
satisfaction scores increased—achieving a
record net promoter score in the U.S. Samestore sales also exceeded the U.S. casual
dining segment in eight of the 12 months
in 2013. Best Corner Bar In Town activations
are also driving increases in liquor, beer and
wine (LBW) sales.
FRIDAYS TEAM
With team members serving as the critical
element in bringing the Fridays experience
to life, the brand continued its emphasis on
providing industry-leading benefit programs
to employees in 2013, and Fridays improved
its employee engagement scores by four
points for the year.
Among other initiatives, Fridays introduced
Hot Schedules, which lets team members conveniently create schedules via smartphone, and
its internal employee portal Stripes Nation on
Yammer. These innovations are giving its team
members the tools they need to succeed in their
jobs and creating a enhanced sense of community for all Fridays locations.
Fridays also continued its unique Have a
Heart program. For more than a decade, Fridays
has managed its own internal foundation, the
Have a Heart fund, which provides financial
assistance to team members who experience
a tragedy, natural disaster or unforeseen emergency. More than half of Have a Heart program
funds come through generous payroll contributions from thousands of Fridays team members.
The Fridays Have a Heart fund reached new
heights in 2013 by launching its Life Changer
program, which provides grants to Fridays team
members so they can pursue life-changing
dreams. In 2013, the brand gave more than
250 Fridays team members in-need grants
totaling more than $760,000.
Ricky Richardson
Ian Saunders
President and Chief
Operating Officer,
TGI Fridays USA
Karen Forrester
President and Chief
Operating Officer,
TGI Fridays International
Kathy Kotel
Senior Vice President, General
Counsel and Head of Business
Affairs, TGI Fridays
and Chief Executive
Officer, TGI Fridays U.K.
Tom Kurrikoff
and Chief Financial Officer,
TGI Fridays
Anne Varano
and Chief People Officer,
TGI Fridays
Above, TGI Fridays restaurant re-imaging program is driving
a 50 percent improvement in sales in the locations that have
been re-imaged compared with those restaurants’ sales
prior to the re-imaging.
TGI Fridays | 45
Responsible Business
Responsible Business
Responsible
Awards &
Recognitions
World Headquarters
LEED Silver level
certification for Existing
Buildings: Operations
and Maintenance
Greater Good
Carlson Rezidor
Hotel Group
More than 400 Carlson
Rezidor hotels have
earned eco-labels from
recognized third-party
organizations.
With the company’s values as its guide, Carlson is
committed to operating its businesses and delivering
results in a responsible manner.
SM
Carlson Lexicon
UN Global Compact
The UN Global Compact
is a strategic policy
initiative for businesses
that are committed to
aligning their operations
and strategies with 10
universally accepted
principles in the areas
of human rights, labor,
environment and
anti-corruption. Carlson
has been a signatory to
the UN Global Compact
since 2010.
Carlson is a responsible business in practice
as well as in theory and aims to be among the
leaders in the industry.
An important milestone year for responsible
business efforts at Carlson, 2013 marked
the 75th anniversary of Carlson and the
10th anniversary of Responsible Business
Action Month in September, which originated
in The Rezidor Hotel Group and has since
spread across all of Carlson.
As part of Carlson’s 75th anniversary
celebration, Carlson planted 7,500 trees in
the Americas, another 7,500 in Asia Pacific and
7,500 in Europe, Middle East and Africa—a total
of 22,500. Departments and teams across the
company worked on local community service
projects that range in scope from stuffing school
backpacks with supplies to building houses
for needy families to organizing environmental
cleanups and blood drives.
Here’s a look at just a few highlights of the
company’s responsible business efforts over
the year.
CWT AMBITION TO LEAD
In 2013, Carlson Wagonlit Travel released its
first Responsible Business report, outlining
the company’s 15 long-term responsible
business commitments, and its Responsible
Business Ambition for 2015, outlining its plans
for future responsible business initiatives.
In addition, EcoVadis, a reputable corporate
social responsibility monitoring organization
covering ethics, social, environment and
responsible purchasing, granted CWT a
Silver Recognition Level. CWT’s Silver rating
is recognition of the responsible business
progress CWT made in recent years.
HOTELS AMERICAS
The Carlson Rezidor Hotel Group took action in
its local communities by organizing social and
CWT U.K.
Category A rating with
Achilles Verify, an
accreditation which
monitors sustainable
procurement in the
energy industry. CWT
improved its score to an
average of 97.6 percent
across all categories.
environmental activities. Hotels from Barbados
to New Orleans participated in World Clean Up
Day, while other properties chose to donate
their time to local food charities such as
Second Harvest.
At Carlson’s world headquarters, Carlson
Rezidor Americas employees joined corporate
center employees and colleagues from
CWT to participate in their fourth annual
consecutive Habitat for Humanity project in
north Minneapolis, collectively donating more
than 10,000 hours and helping to build four
houses for families in need.
CARLSON REZIDOR ASIA PACIFIC
On Earth Day, the hotel group in Asia Pacific
invited hotels to focus on water conservation
for the day. More than 55 percent of hotels
participated, conducting efficiency reviews
and checking systems for leaks.
On World Clean Up Day, more than
2,800 employees took part and collected
8.6 tons of trash and recycled 4.7 tons of waste.
During Responsible Business Action Month,
100 percent of hotels participated. Asia Pacific
employees, taking part in various activities
across the theater, collectively donated more
than 1,400 units of blood, collected 2.8 tons
of trash, and raised or donated $101,000 and
collected $172,000 in in-kind donations. The
Radisson Blu Plaza Sydney alone hosted a gala
dinner for World Childhood Foundation raising
more than $30,000.
RESPONSIBLE REZIDORIANS
Fridays Support Center to commemorate
Carlson’s hotels across Europe, the Middle
the 22,500 trees Carlson planted around the
East and Africa organized almost 700 activities
world. The brand also applied a Carlson
and raised EUR 240,000 for Carlson Rezidor’s
Family Foundation grant to helping Feeding
charity partner World Childhood Foundation.
America with the organization’s Community
Childhood is an organization founded by Queen
Kitchens program.
Silvia of Sweden that focuses on aiding children
at risk for abuse and exploitation. Another
Above, A team member at the Radisson Hotel Cebu
EUR 133,000 was collected for local charities
in the Philippines tends to plants on the hotel’s unique
in more than 260 communities
rooftop herb garden.
in 70 countries.
FRIDAYS MAKING A
DIFFERENCE
Snapshot: Club Carlson
TGI FridaysSM partnered with
Feeding America through
Carlson Rezidor Hotel Group leads the industry by being the first loyalty program
its World Bartender
to launch a global meetings and events carbon offsetting initiative.
Championship competitions
and presented a check to
Club CarlsonSM, the hotel rewards program for Carlson Rezidor Hotel
Feeding America at the
Group, announced on 2013’s Earth Day that it became the first hotel
company’s championship
loyalty program to commit to a global meetings and events carbon
event for $250,000.
offsetting initiative. Club Carlson will purchase carbon credits to offset
Fridays also made a
the estimated carbon footprint of 100 percent of Club Carlson for
$35,000 donation to
Planners meetings and events globally, across the group’s hotels
Minnie’s Food Pantry and
in operation worldwide.
was recognized with an
The carbon offsetting, a free service for the meeting planners,
award from Minnie’s at its
will be managed through Carlson Rezidor’s partner, Carbon
annual gala for the number
Footprint Ltd. Carbon credits will be purchased and invested in
of Fridays team members
renewable energy in India and with the planting of one tree for
who have volunteered.
every ton of carbon offset in the Great Rift Valley in Kenya. Any
Fridays celebrated
of the millions of Club Carlson members globally will also have the
Carlson’s 75th Anniversary
opportunity to redeem their Gold Points®, in various increments, to
by planting a tree at the
these projects on an ad-hoc basis.
Responsible Business | 49
Responsibility in Action
CarlsonSM takes its commitment to leadership in responsible business activities
seriously. For the company, responsible business means taking care of people,
the communities in which it conducts operations and the environment.
22,500
Responsible Business Practice
People
Community
+
Taking responsibility for
diversity and inclusion, and
the health and safety of
employees and customers.
Showing social and ethical
leadership within the
company, as well as
in the community.
+
Environment
Reducing negative
impact on the earth.
Hotel Participation Abroad
Asia Pacific
+55% of hotels participated on Earth Day

Trees Planted
Worldwide
1st
CWT Responsible
Business Report
$250,000
TGI Fridays Donation
to Feeding America
2,800 employees participated on World Clean Up Day

11.4 tons of trash collected

4.6 tons of waste recycled

1,400 units of blood donated

$101,000 raised or donated
$35,000
Fridays Donation to
Minnie’s Food Pantry

$172,000 in-kind donations

$30,000 raised for World Childhood Foundation

100% of hotels participated during Responsible Business Action Month

Europe, Middle East and Africa
700 activities

107,000 EUR raised for World Childhood Foundation

133,000 EUR raised for local charities

260 communities involved

70 countries participated

10
Years of Responsible
Business Action
Month
100%
Participation in Club
Carlson Carbon
Offsetting Initiative
Responsible Business | 51
Glossary
ACT
Actual (historical) financial results
BLS
U.S. Bureau of Labor Statistics
ADJUSTED NET INCOME
Net Income excluding asset impairments
and gains and losses on material and
non-recurring transactions. Consolidated
Adjusted Net Income includes CHREC
and CWT’s equity earnings.
BPS
Basis points: 100 basis points equal
1 percentage point
ADR
Average Daily Rate: hotel industry measure
of daily room rate trends
AFE
Authorization For Expenditure: Capital
expenditure approval process
AGM
Annual General Meeting
ALIS
Americas Lodging Investment Summit
AMEX
American Express
AOP
Annual Operating Plan (Plan or Budget):
12 calendar month bottom-up
operating budget
APAC
Asia Pacific theater
AUV
Average Unit Volume
AVAILABLE CREDIT
Committed and uncommitted lines of credit
arranged and available for use by CarlsonSM
BCD TRAVEL
Global travel management company
competing with CWT
BDT & COMPANY
Merchant bank that provides advice and
capital to family-owned companies.
Founded by Byron D. Trott
CAGR
Compound Average Growth Rate:
geometric growth rate over a specified
period of time
COVERAGE RATIO
EBITDAR divided by Interest and Rents
CAPEX
Capital Expenditures: resources, as in cash
or property, owned or used in business
regardless of accounting treatment. (i.e.,
capitalized or expensed)
CRC
Carlson Real Estate Company
CAPM
Capital Assets Pricing Model: a model that
describes the relationship between risk and
expected return and that is commonly used
to determine cost of capital and to price
securities.
DEBT CAPACITY
Carlson’s maximum borrowing threshold
under which the company maintains
compliance with its debt covenants
CBOE
Chicago Board Options Exchange
CDBAR
Casual Dining Restaurant concept with
an enhanced emphasis on the bar
CDR
Casual Dining Restaurant
CHI
Carlson Holdings, Inc.
CHREC
Carlson Hotel Real Estate Company
CIM
Confidential Information Memorandum
CIO
Chief Information Officer
CIS OR CI&S
Country Inns & Suites
CLUB CARLSON
Carlson Rezidor Hotel Group loyalty
program
COMP STORE SALES
Comparable Store Sales: sales change
(generally defined as a percent change) over
the prior year for stores that have been open
more than one year. This measure eliminates
growth over prior period driven exclusively
by opening new stores and focuses on
organic growth, aka, Same Store Sales.
CWT
DIVIDEND CAPACITY
The amount of equity (retained earnings)
available to distribute as dividends per
Carlson’s credit agreements
EBITDAR LEEWAY
Amount of EBITDAR available after providing
the minimum Interest Coverage, i.e.,
EBITDAR could be reduced by the amount
of Leeway and Carlson would remain in
compliance with the Interest Coverage
component of the debt covenants.
EMEA
Europe, Middle East and Africa theater
ENTERPRISE
Includes all Carlson businesses,
affiliates, and subsidiaries, whether
wholly or partially owned
ERM
Enterprise Risk Management
ERP
Enterprise Resource Planning
EUR
Euro
EYS
Earn Your Stripes
DMA
Designated Marketing Area
F&B
Food and Beverage
DR
Disaster Recovery
FCF
Free Cash Flow: cash generated through
operations less cash used for investments
EBIT
Earnings Before Interest and Taxes:
excludes extraordinary asset impairments,
gains and losses on material and
non-recurring transactions, and
discontinued operations
EBITDA
Earnings Before Interest, Taxes,
Depreciation and Amortization: commonly
used as a surrogate for cash flow
EBITDAR
Earnings Before Interest, Taxes,
Depreciation, Amortization and Rents
FCST
Forecast: annual quarterly Forecast that
includes year-to-date actual results and
forecasted financial performance for the
remainder of the year. E.g., Q1 Forecast
includes January–March actual financial
results and nine months of projections.
FX
Foreign Exchange rate
I/C
Intercompany
FY
Fiscal Year
IFRS
International Financial Reporting Standards
G&A
General and Administrative
IG
Investment Grade
GAAP
Generally Accepted Accounting Principles
INCREMENTAL DEBT CAPACITY
Maximum amount of incremental debt
permitted under the Carlson debt covenants
GBC
Global Business Conference
GBTA
Global Business Travel Association
INTERCOMPANY ELIMINATION
Sales between Carlson entities that are
eliminated at consolidation to properly
report total Carlson Net Revenues
GDP
Gross Domestic Product
IPO
Initial Public Offering
GDS
Global Distribution System
IRR
Internal Rate of Return
GEM
Guest Experience Monitor: Carlson
Restaurant’s customer feedback
process/metric
IT
Information Technology
GEN 4
Country Inns & Suites Generation 4
design prototype
GMMS
Give Me More Stripes: TGI FridaysSM
loyalty program
JD
Jack Daniel’s
JV
Joint Venture
KKR
Kohlberg Kravis Roberts: a private equity firm
HPT
Hospitality Properties Trust
KNAPP CASUAL
Domestic casual dining comparable store
sales benchmark that includes brands such
as Applebee’s, Bennigan’s, Chili’s, The Olive
Garden, Outback Steakhouse, Ruby
Tuesday and TGI Fridays
FDD
Franchise Disclosure Document
HVAC
Heating, Ventilation and Air Conditioning
L&M
Leased and Managed
FFE
Furniture, Fixtures and Equipment
IATA
International Air Transport Association
LATAM
Latin America theater
FTE
Full-Time Equivalent: the equivalent of one
employee working a 40-hour week
IBT
Income Before Tax
LEVERAGE RATIO
Total interest bearing indebtedness
divided by EBITDA
GOP
Gross Operating Profit
Glossary and 2014 Events | 53
Glossary
LFL OR L/L
Like-for-Like
LOI
Letter of Intent
LOOK TO BOOK
Carlson Hotels travel agent incentive
program
LRP
Long Range Plan: The current year Annual
Operating Plan (or current Forecast) plus
two additional years of financial projections.
The two additional years are generally not
a bottom-up plan but a high-level financial
driver-based projection.
LTIP
Long-term Incentive Plan
LTM
Last Twelve Months
LTV
Loan To Value ratio: percent of total
asset value lenders are willing to
leverage with debt
M OR MM
$ in Millions
NAFCO
NAFCO Insurance Company: insurance
captive managed by Carlson and owned
by Carlson Holdings primarily for the benefit
of it and its subsidiaries including CHREC
and Carlson
OBIEE
Oracle Business Intelligence
Enterprise Edition
NBV
Net Book Value
OPEX
Operating Expenditures
NDA
Non-Disclosure Agreement
OTA
Online Travel Agencies
NET WORKING CAPITAL
Current assets (cash, accounts receivable,
inventory, prepaid assets) less current
liabilities (accounts payable, accrued
liabilities, customer deposits)
P&L
Profit & Loss or income statement.
NOI
Net Operating Income: for Carlson Hotel’s
use, this is calculated as EBITDA less FF&E
Reserves.
PAYBACK
The length of time required to recover the
cost of an investment, usually represented
in years
NOL
Net Operating Loss
PCI
Payment Card Industry data security
standards
NORAM
North America theater
M&A
Mergers and Acquisitions
NPD
The NPD Group Inc.: provides retail and
consumer tracking services, analytic
solutions, and advisory services
MFA
Master Franchise Agreement
NPS
Net Promoter Score
MANAGED REVENUE
Sales generated by operations that
are consolidated into Carlson’s financial
statements, including management and
franchise fees. In addition, it includes
client and supplier fees from CWT.
NPV
Net Present Value: A project’s net
contribution to wealth — present value
less initial investment
MOA
Mall of America
MODIFIED NET INCOME
Adjusted net income (ANI) modified for
dividend capacities of 50% for CWT and
33% for Rezidor.
NRN
Nation’s Restaurants News
NSO
New Store Opening (Restaurants)
NYC
New York City
OFAC
Office of Foreign Assets Control
PACE
Profit After Controllable Expenses
P/E
Price to Earnings multiple: company’s stock
price divided by earnings per share
PIP
Property Improvement Plan
PIR
Post Implementation Review: the process to
review approved AFEs after implementation
of the project
PPA
Per Person Average
PPNOC
Pre-Post Net of Control: analytical methodology used in retail and restaurant industries
to determine the sales impact of any action.
It compares a store’s pre-wave sales growth
performance to a representative control, and
its post-wave sales growth performance to
the same control.
ROI
Return On Investment
USD
United States Dollar
S&P
Standard and Poor’s
USP
Unique Selling Proposition
UST
United States Treasury bill/note
PV
Present Value
SEB
Skandinaviska Enskilda Banken:
Sweden-based bank that is Rezidor’s lead
lender and also an investor and advisor
PY
Prior Year
SLA
Service Level Agreement
Q1
First Quarter: Three calendar months
of January–March. Q2 is April–June, etc.
SNAP
Stay Night Automated Pricing: Carlson
Rezidor’s revenue optimization tool that
dynamically establishes prices based on
competitive rates, capacity constraints,
local market demand, and economic
and company factors
PPTS
Percentage Points: used primarily by Carlson
Restaurants. For example, a 9% increase is
expressed at +9.0 ppts.
PSF
Per Square Foot
QSR
Quick Service Restaurant
QTR
Quarter
R&M
Repair & Maintenance
REVENUE
Includes sales of products from
wholly-owned entities and subsidiaries
where Carlson consolidates. Products
include goods and services as well as
commissions and fees charged for a service.
REVPAR
Revenue Per Available Room (hotel room):
Hotel industry measurement of yield.
Average daily rate times occupancy %.
RGI
RevPAR Generation Index
ROE
Return On Equity: adjusted after-tax return
to the shareholders, based on book, not
market, value of equity
ROIC
Return on Invested Capital: Adjusted
after-tax earnings divided by average
Capital Invested for the respective period
SOV
Share of Voice
SSS
Same Store Sales: aka Comp Store Sales
SYSTEM-WIDE REVENUES
Total sales figure for all transactions
occurring under one of Carlson’s brands
whether owned, managed or franchised
as well as all CWT traffic
VIX
Volatility Index: the ticker symbol for the
Chicago Board Options Exchange Market
volatility Index, a popular measure of the
implied volatility of S&P 500 index options.
Often referred to as the fear index or the
fear gauge, it represents one measure of
the market’s expectation of stock market
volatility over the next 30 day period.
VOIP
Voice Over Internet Protocol: Internet
telephony medium
WAN
Wide Area Network
WHQ
World Headquarters
YOY
Year-over-year
YTD
Year to Date
TBD
To Be Determined
TMC
Travel Management Company
TRANSACTIONS
CWT gross transactions, including issued and
refunded air, rail, hotel, and car transactions
TTM
Trailing Twelve Months
TTS
CWT Traveler and Transaction Services.
Includes core operating costs
Glossary and 2014 Events | 55
2014 Update
Carlson continues its momentum into 2014 as it executes plans against its strategic blueprint.
NEW HOTEL BRANDS
February 18, 2014
Carlson Rezidor Hotel Group launched two
new global hotel brands with Radisson Red
and Quorvus Collection. Carlson Rezidor
aims to have more than 60 Radisson Red
hotels and 20 hotels in the Quorvus
Collection by 2020.
With the introduction of Radisson Red,
Carlson Rezidor seeks to create a new
industry category, “Lifestyle Select,” an
upscale, select service concept that boasts
a forward-thinking focus on design and detail,
the customer experience, and the increasingly important role that technology plays in
everyday life. Radisson Red will launch
simultaneously in 2015 in urban centers in
the Americas, Asia Pacific, and Europe, the
Middle East and Africa.
Quorvus Collection is a new generation
of expertly curated luxury, five-star hotels that
offer a truly distinctive experience for contemporary global travelers. Each is individual in
design, heritage, history and architecture. The
future Quorvus portfolio will include historic
properties, contemporary residences, classic
boutiques and urban retreats.
FIRST HOTELS JOIN QUORVUS
May 5, 2014
Carlson Rezidor Hotel Group announced
the first member hotels of its luxury brand
Quorvus Collection: The May Fair Hotel
London, the G&V Royal Mile Hotel Edinburgh,
and the Symphony Style Hotel Kuwait. Each
property has its own heritage and provides a
five-star luxury hotel experience.
The May Fair Hotel London, owned and
operated by Edwardian Group London, is an
icon of expressive contemporary design and
grand hotel service. The May Fair Hotel was
first opened by King George V in 1927 and
offers 404 bedrooms.
The G&V Royal Mile Hotel Edinburgh enjoys
a prime location in the heart of Edinburgh.
Each of the 136 rooms and suites feature
designer Rosita Missoni’s aesthetic look
combined with the latest technology.
The Symphony Style Hotel Kuwait is part of
the Symphony complex in Salmiya, the main
shopping and entertainment district of Kuwait
City. At 18 floors high, the hotel has 169 rooms
and offers views of the Arabian Gulf. The hotel
features interiors designed by Rosita Missoni,
state-of-the art technology, three restaurants,
six event spaces and a signature spa.
TGI FRIDAYSSM SALE
May 20, 2014
Carlson announced that it had entered into
a definitive agreement for the sale of TGI
Fridays to Sentinel Capital Partners and
TriArtisan Capital Partners.
For Carlson, the transaction frees up
resources that the company can deploy to
accelerate the growth of its hotel and travel
businesses, at a time when significant opportunities exist in these markets.
This transaction represents the conclusion
of a thorough and exhaustive strategic alternatives process initiated by Carlson for TGI
Fridays in November of 2013. TGI Fridays will
continue to be run by its proven management
team, led by President and Chief Executive
Officer Nick Shepherd.
Sentinel, who will be TGI Fridays’ majority
shareholder, has extensive restaurant and
franchising investment experience and a
demonstrated ability to create successful
independent businesses through complex
corporate carve outs. Sentinel has completed
numerous acquisitions of both franchisors
and franchisees, including Checkers/Rally’s,
the largest franchisor and operator of dual
drive-through hamburger quick service restaurants in the U.S.; Falcon Holdings, the largest
franchisee of Church’s Chicken restaurants;
Huddle House, a leading franchisor of family
dining restaurants in the Southeast; and
Southern California Pizza Company, a 223-unit
Pizza Hut franchisee operating in the greater
Los Angeles market.
REZIDOR RIGHTS ISSUE
June 5, 2014
The final result of Rezidor Hotel Group AB’s
(publ) (“Rezidor”) rights issue show that
24,250,597 shares, representing approximately 99.4 percent of the offered shares,
were subscribed for by the exercise of
subscription rights.
Carlson subscribed for and received
12,507,454 shares at a cost of $42.7 million.
The 136,220 shares that were not
subscribed for with subscription rights have
been allocated to persons in accordance
with the principles outlined in the prospectus.
Notification regarding allocation based on
subscription without preferential rights
is only sent to those who have been
allocated shares.
Through the rights issue, Rezidor will
receive proceeds amounting to approximately
SEK 544 million (corresponding to approximately EUR 60 million1) before transaction
costs. The proceeds will allow Rezidor to
capture additional opportunities within asset
management, continue to invest in the leased
hotels at an accelerated rate and further drive
focused growth in emerging markets.
Through the rights issue, Rezidor’s share
capital increases by approximately 1,625,766
EUR to approximately 11,625,766 EUR.2
The total number of shares increases by
24,386,817 to 174,388,857.3
The new shares subscribed for with
subscription rights were registered with the
Swedish Companies Registration Office on
May 27, 2014, and started trading on NASDAQ
OMX Stockholm on June 3, 2014. The new
shares subscribed for without preferential
rights were expected to be registered with
the Swedish Companies Registration Office
on June 5, 2014, and to start trading on
June 9, 2014.
1.
Based on the Swedish krona/euro
exchange rate of 9.1036 as published
by the Central Bank of Sweden
(Sw. Riksbanken) April 17, 2014
2. Rezidor’s shares are denominated
in EUR
3. Includes the 3,681,138 treasury shares
held by Rezidor
FULL OWNERSHIP OF CWT
June 23, 2014
Carlson announced that it had entered
into a definitive agreement to acquire
from JPMorgan Chase & Co. (JPMC) the
45 percent equity interest JPMC indirectly
holds in Carlson Wagonlit Travel (CWT).
As a result of this acquisition, Carlson will
own 100 percent of CWT. The transaction
was expected to close in July 2014, subject
to customary closing conditions.
Based on the momentum, growth and
results realized by the management team at
CWT, the acquisition—along with the ongoing
investment in Carlson Rezidor Hotel Group
and its family of brands—solidifies the longterm direction for the company.
Carlson Leadership
Board of Directors
Carlson’s board strategically guides the company and supports delivery of long-term value.
“There’s an incredible amount of momentum in
all of our businesses. It’s an exciting time to work
with our teams to realize our ambitions for growth
and performance. Diana Nelson, chair, Carlson
”
Brad Anderson
Lee A. Chaden
former chief executive
officer, Best Buy
former chairman,
Hanesbrands Inc.
Marilyn Carlson
Nelson
Wendy M. Nelson
director, Carlson
co-CEO, Carlson
Holdings, Inc.
Edwin C. “Skip” Gage
founder and president,
Gage Marketing Group
Gregory R. Page
executive chairman,
Cargill
Geoffrey C. Gage
Richard C. Gage
founder and president,
Geoffrey Carlson Gage
Brand Communications
chief executive officer
and founder, Nebulous/
YourMLSsearch.com
Trudy Rautio
Michael T. Sweeney
president and chief
executive officer, Carlson
chief executive officer,
Steinway & Sons and
president and chief
executive officer, Steinway
Musical Instruments
Management Team
Carlson’s experienced management executives are leaders in their respective fields.
DOUGLAS
ANDERSON
President and
Chief Executive
Officer, Carlson
Wagonlit Travel
Anderson was
named president
and chief executive officer of Carlson Wagonlit Travel (CWT)
by the company’s board of directors in April
2008 after joining CWT as executive vice
president and chief financial officer one year
earlier. Anderson reports to CWT’s board
of directors. He also serves on the board of
directors for The Rezidor Hotel Group.
Currently based in Paris, Anderson has
also worked in Geneva as senior vice
president and chief financial officer for the
SITA Group, the information technology
and telecommunications service provider
to the air transport industry. Before joining
CWT, Anderson was director of Finance and
Business Transformation for the Consumer
Digital and Film Products Group of the
Eastman Kodak Company.
Anderson is a certified public accountant
with a degree in business administration from
the University of Nebraska.
DAVID P. BERG
Chief Operating
Officer, Carlson
Berg leads the
global hotel
business and
participates in the
overall strategy
for Carlson, working closely with key leaders to develop and
implement strategic initiatives for growth.
Most recently, Berg served as chief
executive officer and chief customer service
officer for Z Wireless, the fastest growing
reseller of Verizon services. Previously, he
worked as executive vice president and
president of Outback Steakhouse International and as chief operating officer of GNC
with 7,200 retail locations around the world.
Prior to that, he was executive vice president and chief operating officer of Best
Buy International.
Berg currently serves on the board of
directors for The Rezidor Hotel Group.
He received a degree in economics from
Emory University and a law degree from
the University of Florida College of Law.
BRAD HALL
Executive Vice
President, Chief
Financial Officer
and Treasurer,
Carlson
Hall has been
with Carlson
since 1998, and
prior to assuming the chief financial officer
role, was responsible for the company’s
treasury, strategic planning, investment analysis and risk management activities. In this
capacity, he directly led and advised on loan
transactions totaling more than $2.5 billion.
Hall also oversaw the share purchases that
secured Carlson’s majority interest in the
Rezidor Hotel Group.
Hall holds a master’s degree in business
administration with Finance and Strategic
Management concentrations from the
University of Minnesota’s Carlson School
of Management. He participates in several
finance-related organizations, including
the American Institute of Certified Public
Accounts and the Association for Financial
Professionals. He is also a Certified Public
Accountant (inactive).
TONY
PELLEGRIN
Senior Vice
President,
Corporate
Development,
Carlson
Pellegrin leads
corporate development efforts and the strategic planning
process. His key responsibilities include
sourcing potential acquisitions, partnerships
and joint ventures that align with Carlson’s
strategies; seeking investment opportunities;
and identifying opportunities for growth.
He also is instrumental in long-range
strategic planning for the company and
provides environmental scans and analysis
of organizational positioning and competitor
intelligence.
Pellegrin joined Carlson from Supervalu
Inc., where he served as vice president
of Corporate Development. Prior to this,
he served as general counsel of a global
business unit of Honeywell International,
Inc. He also served as director of Corporate
Development at Federated Direct/Fingerhut
Companies, Inc.
Pellegrin earned a Bachelor of Arts degree in political science, magna cum laude,
from the University of Minnesota. He holds
a law degree from the University of Chicago
Law School.
TRUDY RAUTIO
President and
Chief Executive
Officer, Carlson
Rautio presides
over Carlson’s
three businesses:
Carlson Rezidor
Hotel Group, TGI
FridaysSM and Carlson Wagonlit Travel (CWT).
Rautio has been a senior executive with
Carlson since 1997 and has served as executive vice president and chief financial and administrative officer of Carlson and president
of Carlson Rezidor Hotel Group, Americas.
Previously, Rautio served in a dual role
as executive vice president and chief
financial officer of Carlson Consumer Group,
plus chief administrative officer of Carlson
Hospitality Worldwide.
Prior to joining Carlson, Rautio was senior
vice president and chief financial officer of
Jostens, Inc. She also served as vice president of Finance for Pillsbury Co.
Rautio also serves as chairman of the
board for both Carlson Wagonlit Travel and
The Rezidor Hotel Group.
A graduate of Bemidji State University
in Bemidji, Minnesota, she holds a Master
of Business Administration degree from
the University of St. Thomas, Twin Cities. In
addition, she is a Certified Public Accountant
and a Certified Management Accountant.
CYNTHIA
RODAHL
Executive Vice
President,
Human
Resources and
Communications,
Carlson
Rodahl is
serving as executive vice president and
chief human resource officer for Carlson.
Rodahl previously served as divisional
vice president within Carlson’s Hotels
and Travel divisions.
In her more than 20 years of strategic
human resources experience, Rodahl has
substantially increased the creditability and
influence of the human resources function
within the company.
Prior to joining Carlson, Rodahl served
as BUCA Inc.’s chief family resource officer.
Rodahl also held senior executive roles
with The Pillsbury Company and Transport
for America. Rodahl is also a founding
partner of Tevera Consulting, which is
dedicated to helping companies strengthen
the links between strategy, organizational
effectiveness and governance.
She holds a Bachelor of Science in business from the University of Minnesota. She
recently completed a term as a member
of the Citizen’s Finance Committee for
the Orono School District, a volunteer
group that works with the school board
on financial matters.
NICK SHEPHERD
President and
Chief Executive
Officer, TGI
Fridays
Shepherd was
named president
and chief executive officer of
Carlson Restaurants, parent company to
TGI Fridays, in February 2009.
Shepherd began his career in restaurant
operations, and he has more than 25 years
of leadership experience in global operations, development, franchise, marketing
and brand management.
After starting his career with Whitbread
PLC, Allied Lyons PLC and London-based
Grand Metropolitan PLC, Shepherd
established his own successful service
management consulting business and then
served at Blockbuster Inc. as global chief
operating officer.
Prior to joining Carlson and TGI Fridays,
Shepherd served as the chairman and
chief executive officer of Sagittarius
Brands Inc., a private-equity-owned
restaurant holding company that owned
and operated the Del Taco and Captain D’s
restaurant brands.
Shepherd earned his bachelor’s degree
in Catering Systems from Sheffield City
Polytechnic in England.
WILLIAM A.
VAN BRUNT
Executive Vice
President and
General Counsel,
Carlson
Van Brunt joined
Carlson as senior
vice president
and general counsel in February 2000.
Since February 2006, Van Brunt has
served as executive vice president and
general counsel.
Prior to joining Carlson, Van Brunt served
as vice president and associate general
counsel for General Mills and as senior
associate counsel for the Hershey Foods
Corporation. Before this, he was in private
practice, specializing in business/corporate
law, patent law and trade regulation.
Van Brunt earned a Bachelor of Science
degree at Pennsylvania State University, a
Master of Science degree at Massachusetts
Institute of Technology, a Juris Doctor
degree at Boston University School of
Law and a Master of Laws degree at
Harvard University. He also studied in the
Advanced Management Program at Harvard
Business School.
Van Brunt is admitted to the bar in the
states of Massachusetts, Pennsylvania and
Minnesota. He is a member of the State Bar
Association for each of those three states,
as well as the American Bar Association.
Carlson Leadership | 63
Our Purpose
Serve millions of guests and travelers in
a way that positively influences their lives.
Provide tens of thousands of jobs and help our
employees grow and achieve their potential.
Contribute to the common good through
our commitment to social responsibility.
Generate attractive financial returns for
our shareholders and business partners.
Carlson Credo
Whatever you do,
do with Integrity.
Wherever you go,
go as a Leader.
Whomever you serve,
serve with Caring.
Whenever you dream,
dream with your All.
And never, ever give up.

2013 Annual Report

Transcription

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