Radisson In Process of Terminating About 20% of Hotels in US

A $1.5 billion overhaul underway by Radisson Hotels & Resorts is not only revamping dusty properties--hotels failing to meet new standards are quickly being discontinued.

According to USA Today, the chief officer of Carlson Hotels says the chain will have terminated 12% of hotels in its system by the end of 2011. Radisson now has a roster of 430 hotels, with plans to remove another 10% in the coming year.

The list of hotels getting the pink slip includes properties in Florida, South Carolina and Missouri, although the company has not revealed any specifics.

Kirschke says hotel owners that do not meet Radisson quality standards--or, in some cases are failing to pay appropriate fees--will not be allowed to "carry our name."

The revamp, originally announced in March, includes five new room concepts, two new restaurants, and a host of new services.

According to Kirschke, the overhaul is moving along faster than originally expected. In just 10 months, hotels have gone through about a third of the investment. Kirschke says more hotels agreed to invest in makeovers after an improving economy allowed Carlson to put more pressure on hotel owners to renovate.

The overhaul seems to be working: last March, only 25% of Radisson owners were committed to improving hotels. Today, 77% of existing Radisson hotels are on board.

This is not the first hotel chain to give their entire inventory a makeover: Holiday Inn let go of about 1,200 hotels in a period of just six years. Sofitel, a French chain, recently said goodbye to hotels that failed to fit the brand's hip image.

Carlson Hotels portfolio includes about 1,085 hotels worldwide, including brands such as Radisson Hotels, Country Inns & Suites, Park Inn and Park Plaza.

Photo, zaffi, flickr.

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