Organic growth has been a key pillar of our strategy. We have a pipeline of 20,000+ rooms due to open within the next three to four years. This is one of the strongest in the industry and represents 32% of the current number of rooms in operation, compared with an industry average of ca 20%.
The European pipelines of Radisson Blu and Park Inn by Radisson are one of the largest in their respective categories. Over 95% of the pipeline consists of fee-based managed and franchised contracts, generating a higher profit margin than the existing portfolio. When the rooms in the pipeline are open, the Group’s EBITDA margin will increase by 2–2.5% pts, supporting the 12% target over a business cycle.