Radisson Pursues Domestic Tourism Strategy Amid Economic Uncertainty in West Asia

Radisson Hotel Group Expands in India Amid Rising Domestic Tourism

Radisson Hotel Group (RHG), a mid-premium hospitality chain, is accelerating its expansion plans in India across its various brands, including Radisson Blu, Radisson Collection, and Park Inn and Suites. The move is driven by increasing domestic tourism, despite global geopolitical crises, and growing interest in formats such as religious and experiential tourism, weddings, and the meetings and exhibition segments.

RHG currently operates 142 hotels in India, with a total of 17,000 keys. By the end of 2025, the group aims to have 200 hotels operational or in the pipeline. Looking ahead, RHG plans to reach 157-160 operational hotels and up to 19,500 keys by the end of 2026, supported by a strong development pipeline, conversion opportunities, and deeper market penetration. The company has already planned 18+ openings for this year alone, adding approximately 2,000-2,500 keys.

Domestic Tourism Drives Demand

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Domestic tourism has emerged as the primary driver for demand in India, incrementally growing room rentals. The varied nature of domestic tourism has made it attractive to both hotel chains and asset owners. RHG's managing director and chief operating officer, South Asia, Nikhil Sharma, highlighted that domestic tourism continues to be the strongest demand engine for India's hospitality sector.

Infrastructure improvements, such as roads, highways, railways, and airports, are opening up new destinations, creating opportunities for RHG to expand its presence. The company has recently signed an agreement to operate two hotels in Thane and Mira Road, built by the Vihang Group.

Growing Demand in New Markets

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RHG has entered new markets such as Jawai, Sagar, Yavatmal, and Ooty, and has expanded its presence in leisure markets like Jaipur, Goa, Pawna Lake, Puri, and elsewhere. Sharma noted that religious tourism destinations such as Ayodhya, Vrindavan, Ujjain, and Deoghar are witnessing structural travel growth, while infrastructure-led cities, industrial corridors, and leisure destinations across Rajasthan, Goa, Uttarakhand, Himachal Pradesh, and Jammu & Kashmir are becoming increasingly attractive.

Hotel Tariffs to Follow Market Dynamics

While an upward trajectory in hotel tariffs is a possibility in the near term, it will be driven by broad supply and demand dynamics in micro-markets, rather than industry-wide inflation in room rents. Sharma stated that demand has meaningfully outpaced the addition of quality branded inventory in many cities, creating stronger pricing power across segments. However, pricing growth is likely to remain market-specific and driven by underlying demand-supply fundamentals rather than broad-based inflationary pricing.