The Suite Spot Leadership lessons from Radisson's Chema Basterrechea

In an era where businesses must navigate increasingly complex global markets, the role of leadership has never been more critical. Chema Basterrechea, Global President and Chief Operations Officer (COO) at Radisson Hotel Group, offers a masterclass in how to lead and scale with agility, cultural sensitivity, and an unwavering focus on operational excellence. Drawing on his extensive international experience, Basterrechea reveals the strategic mindset entrepreneurs need to thrive amid rapid change and shifting consumer expectations.

Embracing a global mindset
"First and foremost, having a global mindset is key when leading teams and scaling businesses worldwide," Basterrechea asserts. In a world where borders are increasingly porous but local nuances remain vital, a leader's ability to think beyond their immediate environment can unlock new growth opportunities. "It's all about being flexible and ready to adapt to rapid changes. Thinking laterally helps you address various audiences and markets, turning problems in one geography into opportunities in another."

This lateral thinking is no abstract ideal but a practical imperative. Whether engaging with customers, area teams, or investors, maintaining close ties across the spectrum is essential. "Staying close to all stakeholders, from customers to area teams and investors, is essential. This international mentality is something I've embraced from Radisson's watchword of 'Yes I can!', which embodies our spontaneous and individual approach to guests and employees."

The value of such an ethos is evident in Radisson's expansive footprint, where a unified brand experience must be balanced against diverse cultural and regulatory landscapes. Basterrechea's global mindset is a blueprint for entrepreneurs looking to transcend local markets and compete on an international stage.

The post-pandemic hospitality landscape
The hospitality industry, battered by the COVID-19 pandemic, is now navigating a path toward recovery and reinvention. "Leisure travel is still the powerhouse of global tourism, driving growth in resorts and premium lifestyle brands," Basterrechea notes, emphasising that this segment remains the cornerstone of the industry's revival.

Radisson's strategy mirrors these trends, focusing on expanding its "Radisson Collection and Radisson RED portfolios," which cater to discerning travelers seeking unique and lifestyle-oriented experiences. But the company isn't just betting on leisure. Recognizing the evolving nature of business travel, Radisson is "diversifying business travel offerings with stadium hotels and 'hybrid rooms' that cater to both business and leisure needs."

In a world where the boundaries between work and leisure increasingly blur, such innovation is vital. Guests expect seamless digital interactions throughout their stay, prompting Radisson to invest heavily in technology. "The digital interaction between guests and properties will continue to grow, and innovation in this space is crucial," Basterrechea explains.

Radisson+ exemplifies this focus, offering "seamless digital experiences for check-in, check-out, and during stays." Meanwhile, AI's impact is palpable, with innovations like the "Radisson Meetings Dream Machine," which enables event professionals to visualize and customize event spaces digitally - a timely solution as corporate events rebound. Booking convenience is also a priority. "We're also expanding Hotel & Flight, making booking as easy and joined up as possible." As travelers demand more integrated services, Radisson's efforts to simplify the customer journey reflect broader shifts in consumer expectations.

Sustainability: A non-negotiable business imperative
Looking ahead, sustainability emerges as a defining trend for the hospitality and property sectors. Basterrechea stresses its growing importance: "Sustainability and responsible business are enduring trends that will continue to shape the future. Entrepreneurs should view investing in sustainability as a competitive advantage, especially as ESG gains significance as an investment performance metric."

Radisson's commitment is concrete. The company has "launched industry-first Verified Net Zero Hotels in Manchester and Oslo," setting ambitious targets aligned with "Net Zero by 2050." This focus on reducing carbon footprints isn't just about corporate responsibility - it's integral to long-term viability and investor appeal. Basterrechea highlights the value of conversion hotels, which demonstrate that sustainability initiatives can "be valuable assets." Entrepreneurs ignoring these imperatives risk obsolescence in a market increasingly driven by conscious consumers and regulatory pressures.

Turning around struggling businesses
For entrepreneurs grappling with underperforming operations, Basterrechea offers pragmatic advice grounded in his leadership at Radisson. His focus on profitability is underpinned by a rigorous approach: "When dealing with a troubled business model, it's essential to strip down operations to focus on the basics of P&Ls, operating models, and organisational efficiency to identify weaknesses."

This back-to-basics approach enables leaders to pinpoint where performance lags and implement targeted improvements. But operational discipline alone isn't enough. Basterrechea underscores the importance of growth: "It's also crucial to drive future growth by identifying new market segments and untapped customer bases." Such a dual focus - efficiency and opportunity - has helped Radisson grow by 50% since the launch of its five-year plan, proving that turnaround efforts must balance consolidation with innovation.

Mindset shifts for international scaling
Scaling a business internationally requires more than replication; it demands adaptability and cultural intelligence. Basterrechea distills this into an "experience mindset" that transcends the physical. "In property and hospitality, this means shifting to an experience mindset – beyond the bricks and mortar, what will unify your brand experience globally?" Operational scalability is critical. "You need systems that can be replicated internationally," he explains, highlighting Radisson's investments in "global initiatives like our Career Fest, first-class IT systems like Radisson's EMMA, and strong brand standards ensuring a uniform experience compatible with local diversity." This blend of standardisation and localization enables consistency without sacrificing relevance - a delicate balance that start-ups and scale-ups must master to succeed on the world stage.

Watching the horizon
According to the COO, sustainability and responsible business practices are key forces that will continue to define the future. "Entrepreneurs should view investing in sustainability as a competitive advantage, especially as ESG gains significance as an investment performance metric…Sustainability measures are non-negotiable for long-term viability."

Looking five years ahead, Basterrechea advises entrepreneurs to keep a keen eye on geography and governance. "Entrepreneurs should also keep an eye on growth regions like India, Saudi Arabia, and Egypt, where demand for business and leisure travel is on the rise due to government initiatives promoting tourism." These emerging markets represent fertile ground for hospitality and property investment, propelled by rising incomes and strategic national policies. Combined with relentless technological change and shifting consumer values, the sector stands poised for transformation.

From embracing a flexible global mindset and prioritising customer experience to rigorously managing operations and anticipating market shifts, Basterrechea's experience at Radisson offers a playbook for entrepreneurs aiming to scale successfully. Today's challenges need leaders who innovate responsibly and build cultures that thrive globally. "Leisure travel is still the powerhouse of global tourism, driving growth in resorts and premium lifestyle brands. This means investing in these segments, expanding resort networks, and supporting lifestyle brands that consumers value."