NEW DELHI
:
Radisson Hotel Group, which runs brands like Radisson Blu, Radisson, Radisson RED, and Park Inn by Radisson, is betting on India’s expanding travel market, targeting a portfolio of 500 hotels in the country by 2030. The group, which currently operates more than 140 hotels and has another 70 in the pipeline, is treating India as a strategic growth market—second only to China in terms of number of properties, its top executive said.
“There are very few countries where we have 200 hotels. Is the 500-hotel goal ambitious? Yes. But think about the size and opportunity of India,” Federico J. González, executive vice president, Radisson Hotel Group, said, speaking withMint during his visit to India this week. “How business is shaping up in India is teaching us what we should do in other parts of the world,” he added.
China remains Radisson’s most significant market globally with over 400 hotels—mostly franchised—but India is rapidly catching up. “Right now, China is a bit stable, if not slightly lower, after the last few years of the pandemic. In contrast, India is growing significantly. We were among the first to spot the opportunity, not just in metros but also in secondary and tertiary cities,” González said.
The group, owned by Jin Jiang International Holdings Co., a Chinese state-owned hospitality conglomerate, operates a portfolio of 10 hotel brands from midscale to luxury. The group has been expanding its global footprint while adapting to evolving travel trends, with India emerging as a key growth market. Since being acquired by Jin Jiang in 2018, Radisson has focused on strengthening its presence across EMEA and Asia, exiting the Americas business in 2022 through a sale to Choice Hotels.
Rise in tourism
He said the company has seen consistent performance in India in revenue per available room (RevPAR), contributing significantly to its EMEA growth. RevPAR is a metric hoteliers use to measure how much money a room makes per night when occupied.
Globally, González said tourism trends remain positive with rising average incomes and improved travel infrastructure bringing more consumers into the fold. “In India too, we see a lot of domestic travel, and also a growth in the number of towns, which makes the potential significant,” he said.
While Radisson operates mainly in the mid-market space here, it also has a presence in the luxury segment. González said that Indian consumers—across price points—are extremely value-conscious, a trait that is influencing their choices.
Looking beyond India, he said, travel demand is evolving rapidly. “Globally, we expect a shift towards higher expectations for personalised experiences and quality accommodations. Consumers everywhere are becoming more aware of what good hospitality looks like,” he said. In India, average room rates are high, and while in Europe, hotel occupancy is not growing significantly, average daily rates (ADRs) are up. Latin America is performing well, too.
González sees the most significant opportunity in India’s inbound tourism. “There’s huge growth potential there,” he said.
The group has been undergoing structural shifts since mid-2022, when Choice Hotels acquired Radisson’s Americas business—about 600 franchised hotels and 67,000 rooms—for $675 million. The transaction, which included brands like Radisson Blu and Country Inn & Suites, expanded Choice’s reach in upscale markets across the US, Canada, Latin America, and the Caribbean.
Strategic shift
After selling its Americas business, Radisson has rebalanced its portfolio. The group now has more hotels than before, with an equal division of managed and franchised properties, and stronger profitability. “Our gross operating profit today is higher than before the sale to Choice,” González said.
González sees air connectivity as a key driver for global tourism and hotel growth. “Airlift is still not entirely back, and everything from Europe to China and other major international destinations will be a huge opportunity once airlines fully return to capacity,” he said.
