González lays out Jin Jiang’s role in Radisson

The brands of Radisson Hotel Group are now in the hands of a more secure industry giant, Shanghai-based Jin Jiang International, which last year surpassed Hilton as the world’s second biggest hotel company. After its 2018 acquisition of Radisson from China’s instable HNA Group, which includes a majority share of Brussels-based Radisson Hospitality AB, Jin Jiang has been quick to show its support for a five-year plan hatched a few years ago by Radisson leadership.

Among the key initiatives of the new regime is the launch of co-branded hotels – the first being the Radisson Blu Hotel, Frankfurt in Germany, which also flies the Jin Jiang flag familiar to outbound Chinese travelers. The choice of Frankfurt was an obvious one: For years Frankfurt has been the number one destination within Germany for Chinese tourists. The second co-branded property will come to Brussels next March.

Federico González Tejera, president and CEO of Radisson Hospitality AB and chairman of the global steering committee for Radisson Hotel Group, said potential exists to extend the co-branded product to more than 30 Blu properties across EMEA, including five Radisson Collection soft brand hotels in key destinations for Chinese travelers.

At the newly co-branded hotel, Chinese-speaking guests and travelers will find a range of features, from menus and welcome cards available in Chinese, to guests having the ability to pay for anything with China Unionpay credit cards. In the guest rooms, there are touches like teakettles and a choice of Chinese teas, while restaurants have added dishes like congee, noodles and wontons to breakfast service.

HOTELS spoke with González after the co-brand launch about the new venture and the transition for Radisson teams and it brands to its new ownership base.

HOTELS: Are you able to put a dollar value on co-branding with Jin Jiang?

Federico González Tejera: The moment Chinese travelers realize that the Radisson is also a Jin Jiang they will get a better perception that may help us sell the services we are going to offer them. And as Radisson brands grow in China, when Chinese travelers come to Europe, they will realize it’s the same brand that they have gotten to know in China… What we are also targeting in EMEA is the Chinese business traveler who is looking for another quality service, and a service that they cannot find in other hotels of the same level. So they are going to pay a higher price than they would have paid somewhere else.

H: How much of an investment is there to co-brand at the property level?

FGT: I never mentioned investments because if I tell you a lot, you may think I’m stupid. If it’s too low, you might think it’s too cheap… The focus is on soft goods. We are not making changes to the rooms.

H: What is the timeframe for co-branded extensions?

FGT: Between now and 2022. That is the time we need to execute. The idea is to do it only with Blu and Collection hotels because we are focusing on the upper-scale and the affordable luxury segments.

H: What other amenities might you consider?

FGT: In some bigger hotels, we will have a Chinese restaurant called Shanghai Kitchen, which targets the normal hotel guest. So it’s not only aimed to Chinese; it is aimed to a restaurant that you and I, or anybody, would go. However, if you are Chinese and you miss some of your more Shanghai flavors or tastes, you will pick a Radisson.

H: You are implementing China Unionpay. How difficult is that process?

FGT: It’s not that complex. It’s more of an effort for many hotels where you don’t have the need. It’s like, ‘why do it because the western Europeans are not using that, or the Americans are not using that as much’?

H: Are you going to add Alipay?

FGT: Yes. We are working on it.

H: How big of an issue is training staff to manage a co-branded property?

FGT: With Jin Jiang hotels in China we are initiating a people [staff] exchange with teams from kitchens, reception, operations, and head office. It’s a new company, so it also creates bonding and relations. It creates a lot of cultural awareness. We see this as very positive because we have much more experience interacting with Americans, Germans and French. But our experience with Chinese is very limited.

Now we are hosting a team of around 20 people from China [in Frankfurt]. That helps and encourages the bigger cultural change and an openness of mindset when a Chinese guest asks for help. It impacts their level of satisfaction. That openness may actually help with guests from other cultures, as well.

H: What are Jin Jiang’s plans for developing Radisson brands in China?

FGT: It will go through the spectrum of Radisson brands. But obviously if you look for the current portfolio of Jin Jiang in China, it has more franchised hotels, some managed hotels, and that will be our focus, as well. They have the teams there, so I think they will eventually use many of the companies they have there to help us grow.

H: Will Jin Jiang develop Radisson brands on its own?

FGT: I think where we are working is from the franchise and manchise model and providing the brand.

H: How much of an influence has Jin Jiang been on the Radisson organization?

FGT: First, they are a very respectful shareholder… They looked at our five-year plan and understood it very well. So it’s like since day one, we’re talking the same language. So far, all the influence is positive… When you look at it as a Radisson employee, you look for an owner with professionalism, respect, stability and being fast. I think they fulfill the four very well. Obviously, it takes you more time to understand what everybody’s doing to understand the brands and their reputations. But I think they have been very pleased with all the work that Radisson has done from a branding point of view, from a systems point of view, from a management point of view. They have been very receptive to all the work that the teams have done. That has a very positive impact on the morale.

H: Has Jin Jiang been very hands-on with Radisson?

FGT: It’s a healthy balance. They ask as much as I think they should be asking, and they are involved as much as I think they should be involved. So I think so far, so good. We are very focused on the year-end results and the plans. We get good suggestions, ideas and questions. So far, it’s been positive.

H: How much value is Jin Jiang adding to the Radisson organization?

FGT: They are adding a lot of value. First, I always respect a lot anybody who comes to the company that we’re operating and puts in money. Because once they put in money, it means that they are already adding a significant amount of value. Second, they’re adding a significant amount of value in helping us to become even more ambitious. We have our five-year plan for growth in America, in Asia and in Europe. And then suddenly we see that we can grow beyond that a lot in China. And it’s adding a lot of value in how relevant we can be to a segment of the business and a segment of people that are more and more coming to western Europe.

H: Are new brands being discussed?

FGT: For the moment, we are very focused on our existing brands, and they have many brands in Asia. So there have been no discussions about new brands. I feel we have enough on our plates to make sure we are successful with the brands we have and to clean up those that do not work. Eventually, there’s always people thinking of new ideas for the future.