Radisson Hotel Group, the second largest international chain in India by hotel network and room inventory, is set to open a new hotel every 20 days in the country this year, according to Nikhil Sharma, the chain’s new managing director and area senior VP for South Asia.
Sharma mentioned that the chain’s goal is to have a hotel within a two-hour driving radius throughout India. Additionally, they are expanding their footprint in religious destinations and plan to introduce the first globally branded hotels in markets like Vrindavan, Ujjain, and Guruvayur.
Sharma mentioned that the chain’s goal is to ensure a hotel within every two hours of driving distance throughout India. Additionally, they are expanding into religious destinations, with plans to introduce the first globally branded hotels in markets like Vrindavan, Ujjain, and Guruvayur.
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“People are visiting religious destinations far more than they did before Covid times. We were pioneers in launching a branded hotel in Ayodhya prior to the Ram temple inauguration. During the first month, the hotel recorded an average daily rate of INR 1.15 lakh. Even now, it remains consistently booked out on most days, with the average daily rate standing at INR 30,000,” Sharma remarked.
Recent Openings and Future Developments
Last month, Radisson Hotel Group unveiled the 212-key Radisson Collection hotel in Srinagar, marking the largest hotel in the Jammu and Kashmir region. With a robust presence across over 70 locations, the chain boasts over 180 hotels operational or in the pipeline, totaling 13,700 rooms. Future developments include properties in Saputara (Gujarat), Dhanbad, Nainital, and Jamshedpur. Recent signings encompass new hotel agreements in Delhi, Bengaluru, Raipur, Sonamarg, Sonipat, Dera Bassi, Kevadia, Jhansi, Gopalpur, and Vizag. Approximately 50% of Radisson’s current hotel portfolio resides in tier two, three, and four locations.
“In India, Bharat extends beyond the metros. To thrive in this country, one must have a nationwide presence and focus on smaller cities. Our aim is to expand and ultimately become the largest international operator. Currently, we hold the second position in the country,” Sharma explained. “It’s imperative to look beyond tier two and three cities now. The market is ripe, with widespread internet access and increased spending capacity. Indians are eager for international standards in various locations. We aim to lead the way as the first international player to delve deeper into the country,” he emphasized.
Sharma stated that the chain plans to recruit a minimum of 3000 individuals for new positions this year, supplementing its current workforce of approximately 16,000 employees.
“These 3000 positions are new opportunities, not replacements. Our focus is on skill enhancement, and with each new hotel opening, we’re generating additional employment opportunities in the cities. This is of utmost importance,” he emphasized. “We’re witnessing a trend of team members migrating back to their hometowns from larger cities. They’re willing to accept slightly lower salaries for the comfort of being home. Job creation, skill enhancement, and reverse migration play significant roles in our growth strategy in India. It’s gratifying to see skilled professionals thriving in tier two and three cities, which wasn’t the case before,” he concluded.
Factors Driving Radisson’s Strategic Expansion
He highlighted that factors such as India’s GDP growth, the surge in domestic tourism, the expansion of the Indian middle class, the proliferation of airports and railway traffic, and the enhancement of road infrastructure are key drivers behind Radisson’s strategic decision to expand its network.
“All indicators point to India as a promising destination, and one of people’s top desires is to travel. ” Our aim is to ensure that we meet those needs,” he stated. “The market is poised for expansion. Apart from India, only three or four markets are experiencing similar growth, including Saudi Arabia and Indonesia. With a strong government in place this year, we expect even faster growth,” he said.
Sharma stated that the Indian hospitality market is expected to reach 200,000 classified rooms this year, with rates likely to hold steady. “The demand is projected to outstrip the supply. In my view, within the next seven to ten years, India will see a million classified rooms. This growth won’t be exclusive to international brands; domestic ones will also expand. There’s plenty of space for all of us to grow,” he emphasized.