The Radisson Hotel Group on Monday signed its fourth luxury property under the Radisson Collection brand, to be located at Panvel, near the Navi Mumbai International Airport. The signing marks the debut of the luxury brand in Maharashtra, after Srinagar, where the group operates a 212-room Radisson Collection Hotel, while Udaipur and Jaipur have a property each under construction. Nikhil Sharma, MD & COO, South Asia, Radisson Hotel Group, in an interview with Viveat Susan Pinto, highlights the company’s priorities in the luxury space and its growth in tier 2, 3 and 4 markets. Excerpts:
1) What is the roadmap for the luxury portfolio in India?
With all the infrastructure growth that is happening, especially, around airports, we see opportunities at key locations in the country as transit and corporate travel increases. For instance, we would want to be near the Jewar Airport in Noida or at airports in Hyderabad and Bengaluru in the future. Our luxury portfolio will continue to focus on key metros and major tourist destinations, like Udaipur, Jaipur, and Navi Mumbai. The property we have signed today (Radisson Collection at Panvel) will come up by the first quarter of 2030. This will be a 350-room hotel, positioned as a destination for corporate gatherings, social celebrations, and luxury weddings. The idea is to cater to such demand for premium accommodation.
2) The Radisson Group has been aggressive with signings in tier 2, 3 and 4 markets over the last few years. What is driving you there?
I think, it is the India story that is taking us there. When we entered places such as Karjat, Saputara (hill station in Gujarat), Vellore or Jalandhar, for instance, we were among the early ones to get there. We understood what people wanted in these markets and continue to do rigorous feasibility studies when tapping small cities. People are travelling more often today; distances are motorable and there is also an aspirational consumer within these smaller towns and cities that is looking for a branded hotel for his or her functions, events and gatherings. That is what is driving us there. We have indicated that we intend to more than double our portfolio from 200 hotels now in over 114 cities in India to more than 500 hotels by 2030. The spread of cities will grow as we chase this ambition.
3) But do you see pricing pressure growing in smaller cities as branded players increasingly storm these markets?
We will go where the growth is. The upscale and upper-upscale (3-5-star) segments is where much of the action is concentrated at the moment. This is not just true for us, but for the entire hospitality sector. And we are seeing this as we expand into tier 2, tier 3, and tier 4 markets. As far as pricing pressure is concerned, you would be surprised to know that tier 2-4 markets are setting their own price trends. There is no pricing pressure in these markets.
4) But Goa has been under pressure in recent months in terms of room rates…
Yes. Goa has been the only market that has seen average daily (room) rates decline over the past 12 months. This is especially true in North Goa, not so much South Goa. The market (Goa) is also mature from a tourist destination perspective unlike smaller towns and cities that are emerging on the tourism map.
5) The Radisson Group is also betting on religious tourism. What is the plan there?
Religious travel is booming and we plan to deepen our presence in this segment. We are opening a property in Shirdi (Maharashtra) next month. This will be one more addition in our network which includes temple towns such as Ayodhya in Uttar Pradesh and Katra in Jammu & Kashmir, among others.
