Radisson Hotel Group, one of the world’s largest hospitality players with a presence in more than 100 countries, has made India its second-largest market by number of hotels and the largest by revenue. In an exclusive conversation with Fortune India, Chema Basterrechea, Global President & COO, talks about India’s significance for the group, its growth strategy, competition, and how evolving travel habits are reshaping the hotel business in the country. Excerpts:

How important is India in Radisson’s global portfolio?

Radisson operates in more than a hundred countries, but India is as of today, the second largest country by number of it does. 

As of today, we have 212 hotels in India, including both operating and pipeline properties. Out of this, more than 70 are in the pipeline. 

As I said before, this is because of the size and importance of India to the company’s resources, performance, and portfolio. It is also a country that I love. And when you look at the growth rate of the country, the opportunities that exist, not only for our sector but across the economy, and the passion you see in the people here, it is incredible.

In terms of hotel count, China remains ahead. But in terms of revenue, as a single country, India is the largest contributor for us. Our contracts in China are structured differently, so while the number of hotels is higher there, India brings the highest revenues per single country.

Can India surpass China in hotel numbers or growth? What’s the roadmap?

It would be interesting to see the rivalry between China and India. China, not in GDP growth, but in construction of hotels, is also working very fast and growing very fast. And also, their time to market is extremely short.

In terms of regeneration, it will clearly continue being the country number one.

But India’s forecast, GDP growth, and tourism potential give us huge confidence. The middle class is growing, business activity is expanding, and domestic tourism already accounts for 95% of travel.

Our vision is clear: we are targeting 500 hotels in India by 2030, combining operating and pipeline. That’s more than doubling the portfolio. If the country maintains its current pace of growth and stability, the opportunity is massive.

How different or similar are both the consumer markets?

There’s one similarity — both are growing fast. But otherwise, they are very different. India’s economy is growing at 7–8%, compared to China’s 5%. And consumer behavior is unique. Here, between 85–95% of our business is domestic, so we must adapt to Indian expectations.

Guests here expect warmth, high service levels, and personalised experiences. You feel it the moment you arrive — people smile, they are welcoming and nice. That makes a huge difference. It’s also the only country where we have introduced ad-hoc brands — like Radisson Retreats for cozy destinations, and Park Inn Suites for mid-scale cities. Weddings and food and beverage are far more central to the Indian business model than anywhere else, so we’ve created Radisson Weddings to tap into that.

Growth is coming from many pockets in India. Where do you see the strongest opportunities?

India is not one market; it’s many markets in one. We’re present across Tier 1, 2, 3, and even Tier 4 cities, often as pioneers. About 60% of our pipeline is in Tier 2, 3, and 4 destinations, while 20–35% is in the top 40 cities.

We’re opening in places like Karjat, Saputara, Gorakhpur, Guntur, and Tirupati. We were also the first branded hotel in Ayodhya before the Ram Mandir opened. Resorts, religious destinations, and leisure hubs are big opportunities. At the same time, Tier 1 and Tier 2 will continue to grow as India adds around 250,000 new hotel keys in the coming years.

We’ve been in this market for 27 years. We’re the second-largest international hotel company here. That gives us experience and understanding of what works. But we need to keep adapting.

Our focus is not just to grow the number of hotels but to ensure operational excellence. Owners and investors must see us delivering higher gross operating profits in a sustainable way. That’s the equation: growth of hotels, growth of revenues, and building trust with investors. 

How do you approach ownership models in India — management vs franchise?

Globally, our portfolio is 60% franchise, 40% managed. In India, it’s an even split, 50–50. Personally, if I can choose, I prefer managed contracts because we bring far greater value, especially for high-net-worth individuals entering hospitality without the teams or expertise to run hotels.

But franchise remains important. Institutional investors with experience and multiple brands often prefer franchise. So, it depends on the investor profile. What matters is ensuring sustainable returns for the owner.

With global players expanding post-Covid, does Radisson’s long presence in India give you an edge?

Yes, but it also keeps us on our toes. With 65% of our owners having more than two hotels with us, loyalty is strong. Half of them have been with us for over 20 years. That loyalty comes from results, not relationships.

We’ve been pioneers in secondary and tertiary cities, building experience in markets where talent and infrastructure are harder to secure. That helps us connect the dots—identifying the right people, creating strong teams, and ensuring high returns for owners.

But in today’s competitive environment, nobody can rest. First-mover advantage is useful, but agility, flexibility, and staying close to investors and teams matter more.

And another opportunity is that if we are present in a hundred nationalities and we have a very strong international awareness, India will also grow in both ways as an inbound and outbound market.

Religious tourism and weddings are big in India. How are you tapping into them?

Religious tourism has always been there and it will continue to grow. So, what we are doing is making sure that the quality accommodation at these religious destinations comes up because we truly believe that it's been lacking in the mid-scale, upscale and upper upscale segment, and that's what we are here to cater to. Depending on the market, depending on the city, on religious tourism, we would like to have one of our flags in these cities.

Secondly, India is by far the country with the highest weight of food and beverage due to the importance of weddings. Even mid-scale hotels are built with large banquet spaces and lawns. And for that reason, we are investing a lot of marketing funds into promoting and creating our Radisson Wedding. We continue listening to what the market may request and also trying to create some needs according to the consumers' habit, expectations, and what really is being requested and desired here.

Where does luxury fit into your India strategy?

Thirty years ago, India’s hotel industry was almost entirely luxury — ITDC, Taj, Oberoi, ITC. Today, the pyramid is broadening. Globally, only 10% of hotels are luxury. In India, it used to be 60–70% and is now closer to 40%.

Our larger focus will remain upper mid-scale. That said, we’re cautiously growing luxury. Last year, we launched the Radisson Collection in Srinagar. With just one opening, we doubled the city’s luxury inventory. In Udaipur, we’re building a 350-key luxury hotel on a 100-acre site. We have about 10 brands globally, but in India, we have 12 brands to cover everything, from economy to luxury.

What’s India’s current revenue contribution and where do you see it going?

As a single country, India contributes 3% of Radisson’s total revenues, and close to 6% of our system revenues. We expect that to at least double by 2030, in line with our plan to reach 500 hotels. Of course, this depends on the Indian economy continuing its current trajectory. If that variable doesn't happen, our plan surely has to be adaptable.