Radisson Hotel Group, the second-largest international hotel chain in India, the country this year, driven by the growing demand for travel and accommodation. The chain aims to have a hotel within a two-hour driving distance in India, with a focus on expanding its presence in religious destinations. The company has already opened hotels in Ayodhya and Srinagar, achieving high occupancy and daily rates. Radisson is also planning to open new hotels in tier two, three, and four cities, believing that India's growth potential extends beyond just the metros. The company is committed to hiring 3,000 new employees this year and supporting the reverse migration of team members to their hometowns.
Radisson Hotel Group, the second-largest international hotel chain in India by network and room inventory, plans 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 vice president for South Asia.
Sharma stated that the chain aims to have a hotel within a two-hour driving distance in India. The company is also focusing on expanding its presence in religious destinations, with plans to launch its first globally branded hotels in markets such as Vrindavan, Ujjain, and Guruvayur.
He noted that the demand for hotels in religious destinations has increased significantly since the COVID-19 pandemic, with Radisson being the first to open a branded hotel in Ayodhya before the inauguration of the Ram temple. This hotel achieved an average daily rate of INR 1.15 lakh in the first month and continues to be in high demand, with an average daily rate of INR 30,000 currently.
Radisson Hotel Group recently opened the 212-key Radisson Collection hotel in Srinagar, which is the largest hotel in the Jammu and Kashmir region. The chain currently has over 180 hotels in operation and in the pipeline across more than 70 locations, with a total of 13,700 operational rooms.
Upcoming Radisson hotels will be located in destinations such as Saputara in Gujarat, Dhanbad, Nainital, and Jamshedpur. The company has also signed new hotel deals for locations like Delhi, Bengaluru, Raipur, Sonamarg, Sonipat, Dera Bassi, Kevadia, Jhansi, Gopalpur, and Visakhapatnam. Approximately 50% of Radisson's current portfolio of operating hotels are located in tier two, three, and four cities.
Sharma emphasized that the company's focus is on pan-national growth, including smaller cities, as they believe India's growth potential extends beyond just the metros. He stated that the country is ready for international hotel brands to expand into other locations, as the internet penetration, spending capacity, and demand for global hospitality experiences have increased.
Radisson plans to hire at least 3,000 new employees this year, focusing on skill development and job creation in the cities where they are opening new hotels. It currently has a workforce of around 16,000 employees. Sharma noted that the company is seeing a reverse migration of team members who are willing to move to their hometowns, even at slightly lower salaries, due to the comfort of being close to their homes.
Sharma cited factors such as India's GDP growth, the rise of domestic tourism, the growth of the middle class, the increase in the number of airports and rail traffic, and improvements in road infrastructure as driving Radisson's decision to expand its network in the country. He believes India is a "sunshine country" with immense potential for the hospitality industry, and the company is committed to catering to the growing demand for travel and accommodation.
Sharma said the Indian hospitality market will reach 200,000 classified rooms this year, and he expects rates to hold up this year too as the demand will continue outpacing supply. He personally believes that in the next seven to ten years, India will hit a million classified rooms. So, not only international but domestic brands will expand too.
Radisson Hotel Group's ambitious expansion plans in India reflect the immense potential of the country's hospitality market. As the Indian hospitality sector targets to reach greater milestones, Radisson's commitment to pan-national growth and job creation will contribute to the overall development of the sector.
Advertisement
Facebook
Whatsapp
