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Radisson Hotel Group is targeting aggressive expansion in India over the next five years, aiming to sign around 30 new hotel deals annually. Currently India's second largest international hotel operator, Radisson currently has 115 hotels across its Radisson, Park Inn and Suites by Radisson brands. Around 60 more properties are under development.
Elie Younes, Executive Vice President and Global Chief Development Officer at Radisson Hotel Group, said the company sees continued strong growth prospects in India's hospitality sector. Radisson has been operating in India for 25 years, giving it an early mover advantage. Younes expects solid growth to continue for the next 3-5 years based on the momentum seen.
To capitalize on this opportunity, Radisson plans to sign and open 30 hotels each year for the next five years. This will help the company achieve its goal of having a property within a two hour drive anywhere in India, down from the current four hour threshold.
On the sidelines of the recent Hotel Investment Conference - South Asia, Younes shared these expansion targets. Radisson signed 21 new hotels in India last year, including signings for locations such as Jhansi and Sonipat.
Radisson also announced its first Radisson Collection property in India - a 212 room hotel in Srinagar, under the group's luxury lifestyle brand. 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.
Younes cited surging domestic demand and higher investments from hotel owners as factors driving the industry's revenues upwards. Radisson is firmly entrenched as one of the top operators in consumers' minds. Many hotel owners also want to partner with Radisson, making it the second largest international chain in India after Marriott.
Younes expects the strongest growth potential from Radisson and Radisson Blu brands over the coming years, followed closely by RED and Radisson Collection. Radisson is also collaborating with independent hotels 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.
A JLL India report found that while major cities are near capacity, smaller cities are seeing rising hotel development, a trend that will likely continue as demand outstrips supply. This bodes well for Radisson's focus on expanding beyond major metros into tier 2 and 3 Indian markets.
The same report said that, 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.
There is a shortage of hotel rooms in India and global hotel chains seem to be adding a lot more deals to their pipelines than before, said Manav Thadani, founder chairman of hospitality consultancy firm Hotelivate.
The next five years are likely to see a record phase of expansion by global chains, including Marriott, Hilton, IHG and Wyndham, in India. CEOs, regional heads, and industry insiders say this is the most bullish they have ever been.
Marriott will open its 150th hotel in Katra next month and hopes to get to 250 operating hotels in the next five years, totalling about 50,000 keys. It signed a new JW Marriott Resort & Spa hotel in Alibaug besides a new deal for a Ritz Carlton in Jaipur. IHG Hotels & Resorts also said that they have 50 hotels operating and more than 60 in the pipeline. Wyndham Hotels & Resorts plans to open 150 hotels in India by the end of 2025, while it currently has 62 hotels.
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