• Wednesday, July 24, 2024
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Radisson Hotel Group to add 150 hotels to African portfolio by 2025

Seven truths about the hotel industry that the pandemic reminded us are real

Staying on track with its robust African expansion plans, Radisson Hotel Group, one of the world’s leading hotel companies, is targeting around 150 hotels in operation and under development by 2025.

The group, which has made Africa the centre of its growth strategy, currently has almost 100 hotels across 32 African markets and seeks to cement its leadership across the continent, as well as to be recognised as one of the top three hotel brands in the world.

However, the development is ahead of its five-year African expansion plan.

“This year, we expect in excess of a dozen new African hotel signings and around 2,000 rooms, 50 percent of which will be in the core focus countries with the remainder reinforcing our presence in cluster markets or entering into new territories, further cementing Radisson Hotel Group’s leading position as the hotel company with the largest active presence in the most countries across Africa,” said Ramsay Rankoussi, vice president, development, Africa & Turkey, Radisson Hotel Group.

He noted that 2021 represents a year of continued acceleration for the group, with a focus on its identified key markets, specifically Morocco, Egypt, Nigeria and South Africa.

“We have reinforced our team and resources in order to not only increase the momentum of our growth ambitions but also to better respond to the needs of the investment community in each market with the right skill set and relevant solutions,” he said.

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To achieve the target, Rankoussi explained that conversion would continue to remain a priority in the group’s expansion strategy, especially post-pandemic, as there is less liquidity for newer developments.

“We, therefore, seek to form wider partnerships and strategic ventures with local or regional chains and forge ahead with our city scale and critical mass strategy. The execution of our strategy with clear priorities will equally support in achieving positive economic efficiencies and synergies operationally across all our existing and future hotels, further unlocking the value to our owners,” he said.

Another reason the target is achievable, according to Rankoussi, is because the Radisson brand has now become the group’s fastest-growing brand, as it represents the ideal model for Africa, as well as, leveraging its core name “Radisson” along with an efficient and cost-effective brand, which is well-positioned for every African city.

“We will still continue to reinforce Radisson Blu as one of the leading hotel brands, building on its success across the continent. With the recent introduction of Radisson Collection to Africa, and with the hotel opening in Bamako, we see the potential to accelerate the development of the brand in relevant key capital cities and form a collection of iconic hotels,” he said.

Though the world is still battling for recovery from the impact of the coronavirus pandemic, which is still ravaging, Tim Cordon, area senior vice president, Middle East & Africa, Radisson Hotel Group, is optimistic of meeting the target, saying that 2021 not only holds positive news for the expansion of the group’s African portfolio but will also see key activities, operationally.

“Despite the current situation, we have a strong year ahead of us, supporting the robust expansion strategy, our teams are working tirelessly to realize the pipeline, with six hotel openings in Africa lined up before year-end,” Cordon said.

The hotel openings, according to him, signify the group’s debut into various markets, from a portfolio of three hotels in Madagascar to Juba in South Sudan and St. Denis in Reunion Island.

“Building on the continued success of the Radisson RED brand in Cape Town, we will also be debuting the unique brand in Johannesburg with the opening of Africa’s second Radisson RED hotel in Rosebank,” he said.

It would be recalled that in 2020, the group was able to increase its African portfolio with nine hotel signings, resulting in an addition of over 1,600 rooms, further reinforcing its presence in key markets such as Egypt, South Africa and Nigeria, but also Ghana and Reunion Island.

Moreover, with conversions at the forefront of the growth strategy for the group, two of the additional hotels were able to open within the same year, further demonstrating the strength and ability of the company to accelerate rebranding and repositioning of existing hotels despite the challenges of 2020.

As well, despite the unprecedented 2020, Radisson Hotel & Convention Centre, Johannesburg, O.R. Tambo opened in October and represented the first upscale Radisson branded hotel in South Africa, while Radisson Collection Hotel, Bamako opened in December, debuting as Africa’s first Radisson Collection hotel.

Meanwhile, in response to the evolving demands of the modern market for both hotel owners and guests, the group recently launched a new brand, Radisson Individuals, aimed at individual hotels with strong service scores and existing hotel identities who wish to remain independent or maybe considering overtime transitioning to one of the group’s core brands.

The new affiliation brand also provides a tailor-made solution for local and regional hotel brands seeking to explore the benefits of the Radisson network such as additional distribution channels and/or co-branding options.