Radisson Hotel Group working on 'India booster' plan to fast track expansion: COO

New Delhi: Radisson Hotel Group is working on an 'India booster' plan to fast track its expansion and reach its target to opening 500 hotels here by 2030, besides tailoring its services and amenities to suit Indian tastes in markets such as Europe and the Middle East, said Chema Basterrechea, global president and COO, Radisson Hotel Group in an interview with ET.

India is currently the chain's second biggest market after China in terms of number of hotels and rooms. The chain currently has 318 operating hotels and 39,000 rooms in China. In India, the chain has 146 hotels with 15, 946 tooms. The chain is planning to cross the 150 operational hotels mark in India by December this year.

Also read: Gulf hotel expansion hits a pause, but investors stay interested


“We are keeping India as the centre of our growth strategy, and the reason for that is quite clear. We have been in this country for almost 30 years and between operating plus pipeline hotels, we have close to 250 hotels already,” said Basterrechea.

“So, the intention to get to the 500 mark is just a consequence of our assessment of the growth of this country. We have a very concrete plan that is called India booster plan where we are concentrating the right resources in terms of economics, and the right human resources to get to those numbers,” he added.

Radisson has said it is very often the first branded hotel to operate in some of the new and emerging destinations in the country. Its upcoming launches include new hotels in Ujjain, Tadoba and Namakkal. Nikhil Sharma, MD and COO (South Asia) at Radisson Hotel Group said the chain reported a 14% like for like growth in revenue per available room in the first quarter this year. He said the year-end quarter is likely to be the strongest for the sector despite inflationary pressures.

Basterrechea said besides adapting the brands to suit Indian tastes in the country, the chain is trying to customise services and amenities specifically for Indian travellers at hotels in markets such as the main airport hubs of Europe and the Middle East. “We have a welcome India project, and we are trying to implement the best practices from India in other markets. Considering the number of Indian outbound travellers, we are making changes in breakfast and other services to suit Indian preferences,” he added.

On chains such as Marriott International also exploring the midscale segment in the country, Basterrechea said considering the high growth rate of this country, ‘there should be space for everybody.’

“But, we can capitalise on our legacy here. We have a strong operating culture in tier two, tier three and tier four markets. The brand has a very high awareness and a very strong penetration and our business is predominantly domestic,” he said. “About 65% of our owners across the globe have several hotels with us and that remains so for many years. The same is true for India. These relations are based on performance,” he added.

Also read: Juniper Hotels plans Rs 248 crore acquisition of 287-key Novotel Imagicaa

Referring to the conflict in the Middle East, he said major Middle East markets have been ‘heavily impacted.’

“We are one of the largest operators in the GCC countries. Saudi Arabia is not as heavy heavily impacted as other neighbouring countries, but the major UAE markets have been severely affected,” he said. “We cannot neglect what is happening. We have more than 50 hotels in the region and many in the pipeline. There can be delays due to the financial commitments and obligations of owners,” he added. Basterrechea ruled out tapping the public markets in India and said the chain is not considering any inorganic growth opportunities. “Our 500 target is predominantly about organic growth and some potential affiliation, if need be,” he added.

On Artificial intelligence, Basterrechea said the company is putting in more resources in content and technology and for growing direct reservations. He said there is administrative work that could be replaced soon if there is a business case that justifies that with technology.

“But, it doesn't mean not to continue employing people. Because, hospitality is a people business and the value of human capital is clear. It’s about focusing on what really matters, which is the relations with people and with the clients.”