Q4 2021 Covid Development Update: Radisson Hotel Group [Infographic]
Radisson Collection Resort, Nanjing
In a new episode of our exclusive series, we explore how the multinational’s expansion efforts intensified at the start of the pandemic, but have since scaled back.
Few events have had such a devastating effect on the hospitality industry as the Covid19 outbreak, which has created enormous challenges for the six major hotel groups, Marriott International, Hilton Worldwide, Accor, IHG, Hyatt Hotels Corporation and Radisson. Hotel Group. Below, we reflect on the impact on Radisson’s development slate.
Part of Shanghai-based Jin Jiang International, Radisson is a true industry heavyweight, with more than 1,600 hotels in operation and under development in 120 countries around the world. Its nine brands include Radisson Collection in the affordable luxury segment, and Radisson Blu, Park Plaza, Radisson Red, Radisson Individuals and Radisson in the premium and upscale segments. But its remarkable geographic spread certainly brought many management headaches at the start of 2020, as countries rushed to impose lockdowns, travel bans and curfews to limit the spread of the coronavirus.
When Covid19 first went global, we asked our research team to keep tabs on how Radisson’s expansion program was holding up amid such unprecedented turbulence, and we’re sharing that data here for the very first time:
|Trimester||Dated||Current hotel projects|
What we can see from this chart is that Radisson had 209 hotel projects underway as of May 13, 2020 – when Covid19 was tearing Western Europe and the Americas in particular apart – but the corresponding number had dropped to 202 as of October 4, 2021. This only corresponds to a 3% decline over the last 18 months, which is much smaller than the sharp decline we saw at Marriott (-12%), but equally disappointing compared on the rise that we are following at Accor (+8%) – it’s a fairly flat growth rate in all honesty.
However, if we dig a little deeper into the numbers, we may be able to detect the emergence of a more curious pattern. The total number of projects in progress has actually increased quite steadily, from 207 at the start of Q3 2020 to 230 at the start of Q2 2021, but has since fallen again. It’s hard to know exactly why Radisson’s pipeline has grown and shrunk in such a way, but we would have expected such a big name in hospitality to actively build rather than shrink its pipeline as countries recover. gradually on foot.
What does all this mean on the pitch? Well, it’s perhaps worth pointing out that the group continues to open a variety of high-profile programs despite these uncertain times, including Radisson Collection Resort, Nanjing, a lakeside development that reflects the fluidity of water through its curvilinear lines and transparent glazing; the cricket-themed Radisson Blu Resort Dharamshala near the Dhauladhar mountain range in the Indian state of Himachal Pradesh; and Radisson Red London Greenwich The O2, a quirky and daring venue near sights such as Cutty Sark and the Royal Observatory.
And while the company’s pipeline is somewhat squeezed, exciting projects continue to be added regularly. Some of the newly announced programs that we started tracking recently in the TOPHOTELPROJECTS construction database include the Radisson Blu Hotel, Changyuan, which is set to become the Chinese city’s first international-branded high-end property; Radisson Hotel Casablanca Gauthier La Citadelle, which will become the first Moroccan hotel under the Radisson brand; and Radisson Hotel Beijing Daxing Airport, a contemporary new construction to accommodate athletes during the 2022 Winter Olympics.
Radisson wary of overtaking
All in all, Radisson seems to be taking a fairly selective approach to new hotel development opportunities, and certainly can’t be accused of taking on more than it can handle. We found that the company ramped up its expansion program in late 2021/early 2022, but has since changed course and curbed its ambitions somewhat, so it now has roughly the same number of projects in the pipeline. course than he did when the pandemic first took hold.
There are encouraging signs that the world’s major markets are slowly bringing Covid19 under control thanks to the rapid deployment of innovative vaccines and effective treatments, however, all eyes will be on Radisson to see what it does next – and if management decides to investing once again in the kind of explosive growth that was commonplace among the world’s largest hotel groups.
Click here to read our entire exclusive Q4 2021 Covid development update series: Marriott International | Hilton Worldwide | Accor | IHG | Hyatt Hotels Corporation | Radisson Hotel Group | Marriott and Hilton collapse on the pipeline