Carlson Rezidor Hotel Group is expanding its presence in India, with plans to have more than 170 hotels across the country within five years under its various brands, including Radisson and Park Inn.
According to the Economic Times, the company plans to develop in state capitals and accelerating its growth in emerging secondary and tertiary cities, with particular focus on South and West India. There are currently 117 Carlson Rezidor hotels in operation and under development across 45 cities in India, including 14 state capitals.
"We plan to extend the number of our hotels in India to over 170 within next five years. We currently have 117 Carlson Rezidor hotels in operation and under development across 45 cities in India," Carlson Rezidor Hotel Group South Asia CEO Raj Rana told the Press Trust of India (PTI).
In July, Carlson Rezidor Hotel Group South Asia Chairman K B Kachru told PTI that India has seen an increasing demand in the midscale market, which is the reason for Carlson Rezidor's push in that direction. "There is a huge middle class and above population here. With the development of new tourist sectors, the potential here is immense for the hospitality industry," Kachru said
Carlson Rezidor aims to drive organic growth by signing hotels in new locations and increasing its presence in key cities. The introduction of new contracts and business models including selective franchising has already yielded new project negotiations in strategic locations. Carlson Rezidor will also continue to work with existing strategic partners and forge new partnerships to develop scalable opportunities for growth. The hotel group intends to grow its India platform by way of management, selective franchising and conversions, will maintain close alignment with its owners’ objectives and continue its flexible approach to attain mutual success.
In 2014 and Q1 of 2015, Carlson Rezidor opened ten and signed six new hotels in India, and achieved its first conversion this year with Radisson Goa Candolim, which opened on India’s west coast. For the rest of 2015, Carlson Rezidor expects to open eight or nine hotels and sign 12-15 new hotels in cities throughout India. To support this expansion, the company has made key management appointments, including Zubin Saxena, VP, development, South Asia, who is responsible for driving portfolio growth in the country.
Other international brands are also looking to expand in India: Last summer, Wyndham president and CEO Geoff Ballotti said that the company plans on tripling its room base in the country to nearly 4,500 by mid-2017, up from 1,500 rooms in 2012. And as of late October, Marriott International, which primarily follows the management contract model, had seven operating brands in India, and was looking to grow. At the time, 49 hotels were slated to open throughout the country, taking the total number of operational properties to 70 by 2018.