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The Radisson Hotel Group is considering bringing its economy brand, Prizeotel to India.
It has eight hotels under the brand in northern Europe. “We do not have an economy brand in India and after testing Prizeotel in Europe, we may look at India," said Raj Rana, Chief Executive Officer, South Asia, RHG.
To ramp up
Expecting its average room rates to grow by 8-10 per cent this year on the back of increasing demand and occupancy levels, in sync with the hospitality industry, RHG plans to increase the number of hotels from 140 to 200 by 2022. Of the 140 hotels now, 90 are operational.
"There is going to be an average jump in room rates as demand and supply are now in equilibrium. Occupancy rates have also found new legs and we expect it to go up from the current 65 per cent,” he added. For the hospitality industry, the average rates are at about ₹5,700.
"Currently, the revenue per available room is very low at $42 given the cost of land and operations. But we are expecting better days for the hospitality industry,” he added.
RHG mostly has mid-scale brands such as Radìsson, Park Plaza and Park Inn by Radisson. "Our mid-scale brands are the fastest growing but budget brands will bring scale. The headwinds faced in the last two years such as GST, demonetisation and liquor ban have now receded, " Rana said.
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