Radisson Hotel Group has set out an expansive blueprint for India, projecting the creation of between 65,000 and 80,000 employment opportunities as it advances towards an ambitious target of 500 properties nationwide by 2030.
Elie Younes, Executive Vice President and Global Chief Development Officer, brought forth India’s strategic primacy in the group’s global vision.
"India is one of our top three most important markets globally, and we aim to have 500 hotels in the country by the end of 2030, either operational or under construction. This expansion could create roughly 60,000 to 80,000 jobs in the country. Therefore, we define it as a skill opportunity," Younes shared.
To support this scale of growth, the Belgium-headquartered hospitality major has intensified its focus on workforce development through its digital learning platform, Radisson Academy, alongside collaborations with JobPlus, the Tourism and Hospitality Skill Council, universities, and state authorities. The emphasis, Younes noted, is on cultivating long-term careers rather than short-term employment.
Ink Dive: Meesho allots 9.48 million shares to employees under ESOP 2024
Radisson currently operates more than 200 properties across India. Future expansion will be spearheaded largely by the Radisson brand in the upscale segment, with a diversified footprint spanning tier I, II, III and IV cities, as well as resorts and destinations of spiritual significance.
Only a modest proportion of the portfolio will comprise five-star establishments, reflecting the stronger investment case for upscale formats in emerging urban centres.
"When you have 500 hotels, you need a core anchor to achieve that number because when you go to Tier II, III and IV cities, you need a product that justifies the investment. You need to build hotels that fit that business circumstance or economy. It doesn't mean you won't do five-star hotels. Out of the 500 hotels, 15 per cent will be five-star hotels, and 45-50 per cent will be upscale, three-star or four-star hotels," Younes said.
He added that 55 per cent of forthcoming projects are anticipated in tier I cities, 25 per cent in tier II and III markets, with the remaining distributed equally between resorts and spiritual destinations.
Addressing the potential ramifications of the ongoing West Asia conflict, Younes indicated that India remains insulated for the present.
"For now, we assume business as usual. We are still optimistic, cautiously or conditionally optimistic. The condition is that there is no further escalation of the conflict in the foreseeable future before the summer. Based on that condition, we remain optimistic," he stated.
Younes affirmed that the group does not foresee any deceleration in its Indian development pipeline and anticipates what could be its most robust year yet in the country.
Conversely, markets directly touched by the conflict, particularly parts of the Gulf such as Dubai and regions of Saudi Arabia, are witnessing subdued occupancy levels.
"Hotels have very low occupancies in these markets for us. But these markets are resilient, it will come back as soon as this conflict is over," he added.
On the expansion strategy, Younes revealed a preference for brownfield developments, notwithstanding their structural complexities, as they enable swifter market entry.
"We prefer brownfield projects, though they are often more complex because existing buildings usually require structural modifications. However, greenfield projects are cleaner and more straightforward in design, but brownfield developments allow faster market entry since the basic infrastructure is already in place. Ideally, brownfield works better for speed, while greenfield offers greater flexibility and purity of development," he added.
Insights from agencies
