MUMBAI: Carlson Rezidor Hotel Group announced a healthy growth for 2016, stating it was above the industry average.
The group saw a healthy Revenue Per Available Room (RevPAR) growth in India – 8 per cent increase vis-à-vis the industry’s performance of 6 per cent for 2016.
The operating portfolio’s Compounded Average Growth Rate (CAGR) is a remarkable 17 per cent since 2010, it said at the Hotel Investment Conference South Asia (HICSA) 2017.
“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.
The group attributed its successful growth strategy to 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.
The group is on track to open eight hotels this year, the group recently launched Radisson Blu Jammu and Radisson Blu Atria Bengaluru in Q1.
|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: Raj Rana|
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.
In India, Radisson Blu, the group’s upper-upscale brand, remains in strong favour due to its high visibility and strong connection with Indian consumers. Good traction is seen in the mid-market 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.
“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.
A good mix of managed and franchised hotels, the group’s core business model in India liesin 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.
Carlson Rezidor Hotel Group includes 1,440 locations in operation and under development with more than 230,000 rooms and a footprint spanning 115 countries and territories. The Carlson Rezidor portfolio includes a set of global brands: Quorvus Collection, Radisson Blu®, Radisson®, Radisson RED, Park Plaza®, Park Inn® by Radisson and Country Inns & Suites By CarlsonSM.
Over 95,000 people are employed in Carlson Rezidor Hotel Group hotel systems and the company is headquartered in Minneapolis, Singapore, and Brussels.
Musafir Namah Bureau