The operating portfolio's Compounded Average Growth Rate (CAGR) is a remarkable 17 per cent since 2010.
MUMBAI, India – Carlson Rezidor Hotel Group, one of the world’s largest and most dynamic hotel groups, announced at the Hotel Investment Conference South Asia (HICSA) 2017, its successful growth strategy of increasing the company’s presence in state capitals and key cities, forging new partnerships and strengthening its brand presence with Radisson RED and midscale brands, Park Inn by Radisson and Country Inns & Suites.
Carlson Rezidor Hotel Group’s India portfolio comprises of 140 hotels in operation and under development across 60 cities in India, including 16 state capitals. The operating portfolio’s Compounded Average Growth Rate (CAGR) is a remarkable 17 per cent since 2010. The Group also saw healthy Revenue Per Available Room (RevPAR) growth in India– 8 per cent increase vis-a-vis the industry’s performance of 6 per cent for 2016. On track to open eight hotels this year, the Group recently launched Radisson Blu Jammu and Radisson Blu Atria Bengaluru in Q1.
“As one of the leading international hospitality operators in India, we have established a nationwide presence through a significant footprint and deep understanding of this key market. We believe in the further expansion of our plans through new strategic partnerships and growth opportunities to augment our existing strong brand presence,” said Thorsten Kirschke, president, Asia Pacific, Carlson Rezidor Hotel Group.
In India, Radisson Blu, the group’s upper-upscale brand, remains in strong favor due to its high visibility and strong connection with Indian consumers. Good traction is seen in the midmarket and upscale brands, of which Radisson, Park Inn by Radisson and Country Inns & Suites brands are well suited.
To drive organic growth, the group’s South Asia team has expanded its presence in state capitals, while accelerating growth in emerging secondary and tertiary cities as connectivity and infrastructure in the country improves.
A good mix of managed and franchised hotels, the group’s core business model in India lies in hotel management, where innovative and scalable development platform encompasses other business models, such as selective franchising and the hybrid “manchising” model – first, beginning as a management contract, later maturing into a franchise agreement. This flexible approach, together with a commitment to align with Indian owners’ objectives, has brought about new opportunities and fresh project negotiations in strategic locations.
In addition to signing new build hotels, the group’s India portfolio has also reaped the benefits of strategic conversions from branded hotels reaching agreements approaching the end of their life cycle. Conversion opportunities have augmented the group’s brand presence efficiently and expediently in recent new to market hotels in strategic secondary and tertiary cities.
“With continued investment in technology and revenue driving platforms, we are optimistic and in a good position to double our portfolio size in the mid-term with future opportunities in anchor markets and portfolio deals. In addition, with a strong workforce of about 15,000 committed employees, our growth promises rewarding career opportunities,” added Raj Rana, chief executive officer, South Asia, Carlson Rezidor Hotel Group.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
