After a “transformative” year for Radisson Hotel Group, the business is looking forward with optimism as Asia Pacific gains momentum.
Radisson Hotel Group Chief Development Officer, APAC, Ramzy Fenianos, recounts the highlights of 2022 and look ahead to opportunities this year, while Radisson Hotel Group Managing Director – Australasia, Lachlan Hoswell, shares the Australasian viewpoint.
2022 was a transformative year for Radisson Hotel Group in Asia Pacific, as the world emerged from the shadows of the global pandemic and travel rebounded rapidly.
A year that started with continued travel restrictions ended with almost complete freedom of movement, and this is reflected in the statistics. According to the UNWTO, arrivals to destinations in Asia Pacific more than tripled (+230%) in the first nine months of 2022. This rapid recovery will accelerate in 2023 as China, the world’s largest outbound market, opens up.
This positive outlook is driving renewed confidence in hospitality and development. RHG secured 40% more signings in Asia Pacific in 2022, compared to the year before, helped by a flexible and innovative development strategy that is driven by highly localised initiatives to support our owners and partners.
In India, 80% of RHG’s new deals marked our entry into new markets, such as Jim Corbett, Nainital, Palampur and Kasauli. We launched Radisson Individuals Retreats, a brand extension of Radisson Individuals. Tailored to the Indian market, the affiliation brand is an ideal fit for boutique properties with unique experiences focused on local culture, sustainability, and wellbeing. Within months of its launch, we’ve signed three boutique lifestyle retreats and opened our first property in Palampur, Himachal Pradesh.
We also introduced the midscale Park Inn and Suites by Radisson brand to the Indian market and entered into a strategic alliance with local developer, Ruptub Solutions, to add 150 Park Inn and Suites by Radisson hotels to India over the next decade. The first pilot is already completed, our first hotel signed under the brand is set to open in Guruvayur, Kerala in 2024. In addition, our core brands continued to rise in key leisure destinations such as Goa, where we unveiled a new Radisson beach resort.
In Southeast Asia and the Pacific, we’ve grown our business units in Jakarta, Sydney, Bangkok and Ho Chi Minh City as part of our mission to provide exceptional on-the-ground support to our local partners.
In Thailand, the signing of five properties in top leisure destinations such as Pattaya, Phuket and Hua Hin, as well as a new flagship property in Bangkok, are a testament to the strength of our brands, partnerships and flexible business models. In Vietnam, we expanded our presence to four hotels with the opening of Radisson hotels in Danang and Phan Thiet. 2022 also marked our entry into Sri Lanka with the signing and opening of three hotels located in Galle, Colombo and Kandy under the Radisson Blu and Radisson brands.
RHG continues to expand rapidly in China, with a healthy mix of organic growth and Master Franchise Agreements (MFAs). In 2022, our company signed and opened more than 80 hotels in China under the Radisson RED, Park Inn by Radisson, Park Plaza and Country Inn and Suites by Radisson brands. The reopening of China to inbound visitors in 2023 will stimulate this development even further.
As the travel industry’s recovery gathers pace in 2023, RHG will continue to work side-by-side with local owners and developers to introduce our brands to even more parts of Asia Pacific, including important established markets and exciting emerging destinations all across the region.
Radisson’s Australasian Outlook
Radisson Hotel Group Managing Director – Australasia, Lachlan Hoswell:
Australasia’s travel, tourism, and hospitality sectors have witnessed a rapid recovery in 2022, as the region reopened to the world and consumer confidence started to rebound from the challenges of recent years.
According to the latest data from Tourism Australia, inbound visitor numbers reached 2.2 million in the first nine months of 2022, representing an increase of over 1100% compared to the same period in 2021. In New Zealand, thanks to the easing of entry restrictions in July 2022, we are seeing a gradual and encouraging uptick in arrivals, mainly driven by trans-Tasman demand.
Radisson Hotel Group has always remained positive about the outlook for hotel development in Australasia. Our dedicated business unit in Sydney is set to grow in 2023 as we continue our focus on supporting our owners and helping their teams achieve commercial success and increase operational efficiencies while accelerating the expansion of our regionwide portfolio in the coming years. We’ve also made recent enhancements to our central services operations that will expand our franchising capabilities with additional resources from reservations, and revenue management through to sales and marketing.
Looking ahead, we will continue to roll out our brands in high-potential markets across Australasia, including key cities, emerging hubs, and leisure destinations. Brands like Radisson, Park Inn by Radisson, and Country Inn and Suites by Radisson have the potential to cover the midscale to upscale segments. Radisson RED, our design-led lifestyle brand, is well-suited to Australasia’s upscale and upper-upscale market segment. The brand is a select-service offering that combines bold interior design as well as vibrant social spaces that owners can either operate independently or outsource, giving them plenty of flexibility to maximise their return on investment.
Radisson Individuals is another brand that we believe has strong potential in Australasia. Our affiliation brand made its regional debut in 2022 with the launch of Grand Papua Hotel, a member of Radisson Individuals in Port Moresby, Papua New Guinea, a highly rated property recognised for its service quality. We’re seeing an increased interest in our soft brands – from new owners who have not franchised before, or owners thinking of a change in brand, as Radisson Individuals offers tremendous flexibility, and cost-efficiency, while giving them the ability to leverage the strength of RHG’s distribution platforms and systems.
RHG is optimistic that the recovery of Australasia’s tourism economy will continue to pick up pace. The highly anticipated return of Chinese travellers will have a significant impact on arrival numbers to destinations across the region, including Australia’s key cities.
With RHG’s leading presence in China, India, and Europe, we believe we will be in a prime position to capture guests traveling to Australasia from these key source markets.