Radisson, MBD Group to launch 50 hotels under Collection and Red brands

Radisson Hotel Group and MBD Group have entered a long-term partnership to develop 50 hotels under Radisson Collection and Radisson Red across key Indian destinations over the next decade

The Radisson Hotel Group (RHG) and the MBD Group on Monday announced a long-term strategic partnership under a master franchise agreement in a bid to expand the chain’s presence across the country.

 

As many as 50 new co-branded hotels, under the luxury and lifestyle brands Radisson Collection and Radisson Red, are expected to come up in the next ten years, predominantly through an asset-light model.

 

These hotels will come up in ‘strategic’ locations such as Lake Pichola in Udaipur, the newly operational Navi Mumbai airport, Bengaluru and Ranthambore, among others, KB Kachru, chairman emeritus and principal advisor, Radisson Hotels Group – South Asia, told Business Standard.

 

 

“India today is at the cusp of growth and has a substantial population under the age of 35, which is very aspirational,” he added.

 

The planned portfolio is expected to follow an approximate mix of 80 per cent managed and franchised hotels and 20 per cent owned properties, reflecting a shared focus on scalable, asset-light expansion, said Sonica Malhotra Kandhari, joint managing director of Delhi-based MBD Group.

 

Malhotra added that the total valuation of the 50 assets under management through the partnership could be pegged at Rs 10,000 crore.

 

“These new hotels could be trading upwards of Rs 4,000 crore in ten years’ time, considering the currently prevailing average daily rates. The gross operating profit could be between Rs 1,700-1,800 crore,” she added.

 

“About 80 per cent of the expansion will be through the lifestyle brand Radisson Red, while the remaining 20 per cent will be done through Radisson Collection-branded hotels,” said Monica Malhotra Kandhari, managing director, MBD Group.

 

The Radisson Hotel Group currently has 139 operational properties in the country, and over 80 in the pipeline. The Brussels-headquartered chain plans to reach 500 properties in India by 2030.