Radisson Hotels Group, the third largest chain of hotels in India, is planning to expand into tier 2 and tier 3 cities in the next four years.

“We are looking at secondary and tertiary market for expansion in the next few years. And we plan to have 200 hotels, in operation and under development, by 2022,” Raj Rana, CEO, South Asia, Radisson Hotel Group, told Fortune India.

Rana said that the company will open new properties in places close to where a Radisson hotel exists. “For instance, we are in Coimbatore so we are now looking at a location like Madurai or Ooty for expansion. The rationale behind it is simple—if a guest wants to stay in one of our properties, it should be available to him in every three hours,” he added.

The hotel chain has been operating in India for over 15 years, adding seven-nine properties every year. The company currently has 140 properties across India, of which 91 are operational.

Rana said the group will adopt an asset-light model to focus more on the brand and revenue-delivering tools. “Often, the investment that goes into the land and construction of the hotels is done by a private investor in India, who then joins hands with us for franchise model,” he said.

Earlier this year, the company, formerly known as Carlson Rezidor Hotel Group, rebranded itself Radisson Hotels Group. The rationale behind the decision was to “capitalize on equity of the brand”, explained Rana.

The hospitality group currently operates six brands in the country: Radisson, Country Inn and Suites by Radisson, Park Inn by Radisson, Radisson Blu, Radisson RED and Park Plaza and will soon launch Radisson Collection.

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