Editors’ Note

The recipient of a B.S. in business administration from Central Michigan University, Steve Hedberg served as the General Manager of the Radisson Hotel La Crosse in Wisconsin for six years, prior to joining Carlson corporate in January of 2000. He has also served as the General Manager of Kamala Bay Terrace Resort in Phuket, Thailand; General Manager of the Radisson Fort George Hotel in Belize City; Corporate Director of Food and Beverage for Radisson Hotels International; and Resident Manager of the Radisson Plaza Hotel at Town Center in Southfield, Michigan.

COMPANY BRIEF Based in Minnetonka, Minnesota, Carlson Hotels Worldwide (www.carlsonhotels.com) operates five lodging chains with more than 930 properties in some 70 countries, including the upscale Radisson Hotel and Regent Hotels & Resorts brands. Regent offers luxury accommodations at a select group of properties worldwide, while its Radisson chain offers upscale amenities at more than 400 locations in some 60 countries. Carlson also owns the mid-market Park Plaza Hotels chain, as well as the Park Inn economy brand. Its Country Inn & Suites chain provides extended-stay service at about 380 locations. Carlson Hotels is a division of Minneapolis-based leisure conglomerate Carlson Companies, Inc. (www.carlson.com), which operates more than 3,230 hotels, resorts, restaurants, cruise ships, and travel agency locations in 82 countries.

Are you pleased with the growth of the Regent Hotels brand? Does 2008 show signs of continued strength?

Yes. Luxury is hot right now. For Regent, our focus is on two areas: major urban markets and resort and destination markets. There are a lot of opportunities out there, but we’re only looking seriously at the A-level locations.

Are you looking to acquire existing properties, or will you build new ones from the ground up?

There will be very few conversions. Most of our properties will be newly built. Our program standards are very defined, and to find an existing building that meets them is pretty difficult. Five or six years ago, 400 square feet was an acceptable guest room size. Today, 600 square feet is the minimum for us.

With new properties in development, the Regent portfolio will include four properties in the Americas, three in Europe, one in the Middle East, and six in Asia Pacific. Do expect continued growth in each of those markets?

We’re focused on growth in all of those markets. We don’t have a specific target in mind, in terms of the number of properties we want to have in a certain number of years, but we aim to open one or two great hotels in each of our target markets. We’re particular and purposeful about growth. We don’t want to open 150 hotels in the next four or five years; we’d rather have 30 to 40 hotels in prime markets.

Has Regent found success in its food and beverage operations?

Definitely, and it’s a major part of our branding as we open new hotels. In Boston, we’re opening a hotel with a restaurant managed by Guy Martin, who is a Michelin three-star chef – one of nine in all of France. It will be a very high-end experience, and that’s what our customers are looking for. At the Regent Bal Harbour, we’re working with Le Cordon Bleu chefs and consultants to put together a unique Mediterranean seafood concept. We’re opening a phenomenal resort in Costa Rica with a high-end chef, who will bring a lot of value to that property. We have about seven or eight new properties in the pipeline, and food and beverage is a large part of all of their programs. Our customers expect a specialty dining experience.

Are spa services likewise an important part of Regent’s properties?

Absolutely. Our minimum size for a spa is now 15,000 square feet, and our spa in Costa Rica will be over 24,000 square feet. It’s a phenomenal concept with tree house treatment rooms built into the rainforest. It’s over the top.

What differentiates Regent properties from their respective competitors?

We are reviving our Asian heritage to provide a hospitality experience for the senses. We want to serve our customers in an anticipatory way – almost without them knowing we’re there. We want to hear, see, and understand what they want without them having to articulate it. We understand the luxury experience and we provide it without our guests having to ask for it. There are a lot of luxury properties out there, but what designates true luxury from the next step down isn’t totally about the product; it’s mostly about service and the beginning-to-end experience.

Is it important for Regent hotels around the world to have the same kind of look and feel?

Yes. We employ specialists who are devoted purely to architectural and design standards. They work with the individual owners and developers to make sure there is a common thread that weaves throughout the brand as we open new hotels.

Is it possible to offer both highly personalized service and technological amenities in properties of Regent’s caliber?

Technology is something that aids our business model; it isn’t something that replaces our service model. We have a clear understanding of the necessity of interaction between our employees and guests, yet we take advantage of technology in areas where our guests wouldn’t notice it. For instance, we use energy-efficient air conditioning systems that turn on when the guest opens the door, bring the room temperature to the desired degree within three minutes, and maintain that temperature as long as the guest is in the room. In-room motion and heat sensors let the system know that the guest is present. These sensors also tie into our electronic “Do Not Disturb” system; no one will knock on your door while you’re in your room unless you call for service. So that technology is both more energy efficient and respectful of our guests’ privacy, and it allows us to provide better service.

Have you been pleased with Carlson’s ability to attract and retain talented employees?

For all of our brands, training and maintaining exceptional staff is the biggest challenge. Having said that, there’s still an allure that draws people to the hospitality industry.

How did you end up in the hotel business yourself?

When I was coming out of college, my uncle recommended I look at the hotel industry, and I thought, “Why not?” I’ve worked in seven different states and three different countries in the world. It has been a great experience. This industry has shown me the world. It has been very good to me.