‘Radisson is the second largest international hotel operator in India’
Bengaluru: Radisson Hotel Group has emerged as India’s second largest international hotel operator, with 115 hotels under the Radisson, Park Inn, and Suites by Radisson brands. At present, around 60 properties are under development, said Elie Younes, executive vice-president and global chief development officer, said in an interview.
Radisson’s portfolio is evenly distributed between metros and tier II-III cities. “We have been in India for about 25 years, and that has given us the first-mover advantage. We are presently witnessing significant growth in India’s hospitality sector. We talked about it four years ago, and that is playing out now. As far as we can see, you can expect three-five years of solid growth.”
The company aims to capitalize on this momentum, and has set a target of signing and opening 30 hotel properties every year for the next five years, Younes said on the sidelines of the Hotel Investment Conference-South Asia.
On Wednesday, the company also announced the singing of a 212-room Radisson Collection hotel, the group’s luxury lifestyle brand, in Srinagar. This will be the group’s first operational Radisson Collection property in India.
However, a year ago, the firm had announced plans to debut the brand with a 300-room property in Hyderabad by 2026. Launched in 2018, Radisson Collection has around 50 hotels globally.
According to Younes, the industry has witnessed a surge in revenues due to an uptick in domestic consumption, and higher investments by private hotel owners. “We are on top of the mind of consumers. Besides, a lot of hotel owners want to work with us. This makes us the second largest international hotel operator in the country after Marriott.”
Going forward, the company expects the highest growth from its upscale brand Radisson, followed by Radisson Blu and RED, with Radisson Collection following closely.
The company is also collaborating with various unbranded hotel properties such as Svelte Hotel & Personal Suites, located in Delhi’s Select CityWalk mall. Such properties will operate under the Radisson Individuals brand, enabling the owners to cash in on Radisson’s global distribution system for promotions.
“We are also adapting to the Indian environment, which is why two years ago, we signed an agreement with RupTub Solutions Pvt. Ltd’s Treebo Hotels for a new master franchise brand customized only for the Indian market.” The collaboration led to the creation of the Park Inn and Suites By Radisson brands, which do not exist elsewhere.
A September 2023 report by JLL India indicated that while metropolises are nearing capacity, smaller cities are witnessing a surge in hotel developments. This trend is likely to persist, with demand for rooms outpacing supply, it said.
According to JLL India, from February 2022 to August 2023, major cities saw a notable increase in upscale hotels, accounting for 60% of new branded properties, while mid-scale hotels made up for the remaining 40%.
In contrast, mid-scale hotels accounted for 70% of the new inventory for smaller cities, hinting at increasing demand for affordable accommodations in these emerging markets.
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Published: 03 Apr 2024, 06:31 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.