US-based Carlson Rezidor Hotel Group will mark the Asia debut of its residences business in India, Indonesia, The Philippines, Sri Lanka and China. The company is in advanced stages of talks with real estate developers to open three such properties in Delhi and Bangalore.
However, the hospitality company has put a condition before developers to also construct its hotel property adjacent to the branded residence. The company hopes to enjoy the synergies of managing both the properties and enhance its presence in the market. "We can help developers get a premium for their property. The buyers would also have a great resale value. The concept has worked for us very well in Europe and we are certain it has many takers here as well," said Simon Barlow, president (Asia-Pacific).
The five-star Radisson Blu Residence and the four-star Radisson Residence are expected to become operational by 2019. The prices for these luxury apartments haven't been decided yet; these will be estimated by developers based on prevalent rates. The hotel group will charge a fee on the final transaction.
The residences, to be managed by Radisson Blu hotel staff, will have facilities ranging from clubs, spas, concierge desks, valet parking and room service facilities. "If you want your house to be cleaned up to five-star hotel standards, we can provide that," Barlow said.
The company plans to open 35 hotels in India in the next two years, extending its presence from north India to the South. In India, the main growth drivers for the company here are its mid-market brands Park Inn and Country Inn. "We are focusing on the domestic traveller in India who is young and wants a hotel room in the Rs 3,000-4,000 category. Foreign tourist arrivals are not seeing any growth. So, we want to tap the domestic segment," Barlow said.
With the hospitality industry struggling with subdued occupancy and room rates, Carlson Rezidor is expecting flat growth this year. "Due to oversupply, rates are under pressure. But we are hoping after the elections, the mood will pick up and there will be more clarity on policy issues," Barlow said.
The Carlson group is also building inventory in the luxury segment, with 13 Radisson hotels being developed. It has renovated its Mahipalpur property, investing about Rs 60 crore to upgrade all facilities.
Besides Carlson Rezidor, hospitality companies such as Marriott and Hyatt have also ventured into the residences business, a big hit with developers in India, in terms of quick returns.
| The five-star Radisson Blu Residence and the four-star Radisson Residence are expected to become operational by 2019
| The residences, to be managed by Radisson Blu hotel staff, will have facilities ranging from clubs, spas, concierge desks to valet parking and room service facilities