Radisson India bets on smaller cities to hit 500 hotels by 2030: MD Nikhil Sharma

New Delhi: India has emerged as one of Radisson Hotel Group's strategic global growth engines and the company remains on track to reach 500 hotels target by 2030, as it is betting on emerging urban hubs and regional towns, religious tourism destinations and hotel conversions to drive its next phase of expansion, Nikhil Sharma, Managing Director & COO, South Asia, said.

Backed by strong owner confidence and growing demand beyond traditional metros, the company expects faster conversion of its hotel pipeline into operational properties over the next two years while expanding deeper into Tier II, III and IV markets -- emerging urban hubs and regional towns -- leisure destinations and religious tourism hubs.

"Without question. India has evolved from being an important market to becoming one of Radisson Hotel Group's strategic growth engines globally," Sharma told PTI in an interview.


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He said the company's India strategy was focused on execution, noting that in the first half of 2026 alone, Radisson signed 18 hotels and opened four properties, taking its development pipeline to 98 hotels and its operational portfolio to 142 hotels across 86 cities.

The Radisson South Asia MD and COO said investors should expect three key milestones over the next two years -- accelerated conversion of the existing pipeline into operational hotels, deeper penetration into high-growth Tier II, III and IV markets, and continued diversification across business destinations, leisure hubs and emerging religious tourism markets.

He said the company is increasingly moving beyond traditional gateway cities into emerging commercial centres, industrial hubs, leisure destinations and pilgrimage centres as improving infrastructure, regional air connectivity, industrial investment and rising domestic travel reshape India's hospitality landscape.

"We are no longer expanding only in traditional gateway cities. Instead, we are building a portfolio that mirrors India's evolving travel landscape from emerging commercial and industrial centres such as Rajkot and Jamshedpur to gateway markets like Siliguri, leisure destinations such as Kasauli and Gopalpur, and high-potential spiritual destinations like Nathdwara and Prayagraj."

According to Sharma, more than half of Radisson's India portfolio is already located in Tier II and III markets, giving the company a differentiated growth platform as demand increasingly shifts beyond Delhi, Mumbai, Bengaluru and Hyderabad.

On the company's expansion model, Sharma said Radisson would continue to pursue an asset-light strategy, with management contracts remaining its preferred operating model, while hotel conversions are becoming an increasingly important avenue for growth.

"Conversions allow us to bring quality inventory to market much faster while creating value for owners," he stated.

At the same time, greenfield developments would continue in destinations where branded hotel supply is still evolving, with each project being evaluated based on long-term demand fundamentals, owner capability and its ability to strengthen the group's network.

On geopolitical tensions in West Asia and higher aviation costs, Sharma said the company has not witnessed any significant impact on bookings.

"At this stage, we are closely monitoring the situation, but we have not seen any significant impact on overall booking trends across our portfolio," he shared.

Sharma added that India's hospitality market remains largely insulated because of strong domestic demand base.

He reiterated the hospitality sector's demand for policy reforms to accelerate hotel development, saying infrastructure status with more uniform implementation across states and streamlined single-window clearance mechanisms would improve project viability and reduce timelines.

He identified Odisha, Jharkhand, Assam, Meghalaya, West Bengal and Andhra Pradesh as states where improving air connectivity, expanding highway networks and government investments are reshaping travel demand.

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"The next phase of hospitality growth will increasingly be driven by these emerging destinations rather than the traditional gateway metros." On the demand environment, Sharma said India's hospitality industry is witnessing a healthy normalisation after the record occupancies and room rates seen in the immediate post-pandemic period rather than any slowdown.

"We would describe it as a healthy normalisation rather than a slowdown." Sharma also dismissed concerns about any structural slowdown in corporate travel, saying companies were becoming more disciplined in travel spending without cutting back on travel.

"Companies are certainly becoming more disciplined in how they travel, but they are not travelling less. What has changed is that travel decisions today are more outcome-driven, with greater emphasis on productivity, flexibility and value..

According to Sharma, the strongest incremental opportunity currently lies in the convergence of meetings, incentives, conferences and exhibitions (MICE), destination weddings and religious tourism.