Radisson Hotel Group's Expansion Strategy
Radisson Hotel Group is betting big on India's smaller cities, temple towns, and leisure destinations, with 75% of its upcoming development pipeline earmarked for these markets. The company has close to 100 hotels under development, with a focus on tier 2 and 3 cities, spiritual destinations, and emerging leisure markets.
Growth Drivers
According to Nikhil Sharma, Radisson Hotel Group's managing director and COO (South Asia), the opportunity in these markets has always been there, but the hospitality sector is only now catching up with the economic growth and rising spending power of non‑metro India. Better road connectivity, expanding airport infrastructure, and rising disposable incomes have made smaller destinations more accessible and commercially viable for branded hotel operators.
Key Markets
The locations earmarked for development include Ayodhya, Amritsar, Ujjain, Odisha, Andhra Pradesh, and the Northeast, alongside leisure destinations near major urban centres. Sharma cited Vellore as an example, where Radisson opened what he described as the city's first branded hotel. Beyond attracting travellers, such properties often become venues for social gatherings, weddings, and community events while generating local employment opportunities.
Future Outlook
The company expects most of its pipeline projects to become operational over the next three to five years. If the current pace continues, Sharma believes Radisson is on track to achieve its target of 500 hotels in India by 2030. India's importance within the global Radisson network is also rising rapidly, with Sharma expecting India to become the group's second‑largest market after China by the end of the decade.
Demand Drivers
A major reason behind this optimism is the structural shift in Indian travel behaviour following the COVID‑19 pandemic. Families that once took a single annual holiday are now taking three to five vacations a year. The company is seeing stronger demand from multi‑generational family travel, leisure breaks, and destination getaways. Weddings remain one of the most lucrative segments, with 40‑45% of Radisson's revenue coming from food and beverage, while nearly 80% of its meetings, incentives, conferences, and exhibitions (MICE) business is linked to weddings.
Spiritual Tourism
Spiritual tourism is another key demand driver, with destinations such as Shirdi, Ajmer, Varanasi, and Ayodhya experiencing a surge in pilgrim traffic. Increasingly, travellers are combining religious visits with leisure travel, creating year‑round demand for hotels at these destinations.
Conclusion
Radisson Hotel Group's expansion strategy reflects a broader shift in India's hospitality market, driven by rising disposable incomes, improved connectivity, and a growing demand for branded hotels in smaller cities and leisure destinations.