Thailand key to Radisson’s massive expansion in mainland SE Asia, VP says
More premium and luxury hotels will open in Thailand over the next five years, according to Elie Younes, Radisson Hotel Group executive vice president and global chief development officer during a media briefing recently.
Thailand's tourism industry is recovering rapidly, he said in a media briefing.
According to Radisson's strategic expansion plan, it will open 12 to 15 hotels each year in Thailand, Cambodia, Laos and Vietnam.
Most of them, about 70%, will be opened in Thailand, with the remaining 30% spread across the three other Mekong countries.
The main locations in Thailand remain the most popular tourist destinations: Bangkok, Phuket, Chiang Mai, and Samui Island.
However, Younes said that the group was also considering a secondary destination in Thailand, likely an island in the South, as part of its expansion plans.
The Radisson RED Phuket Patong Beach, Radisson Resort Phuket Mai Khao Beach, and Radisson Hotel Ploenchit Bangkok are scheduled to open early next year.
Thailand is a strategic target market for Radisson Hotel Group because Thais are becoming more affluent and the country remains a popular destination for international travellers, Younes said, noting that Bangkok was ranked as the world’s most popular city for international tourists in each of the three years before the pandemic.
Last year, about 11.5 million foreign tourists visited Thailand and the number is expected to nearly triple this year to more than 30 million.
"Overall, the group experienced a bright recovery globally, but not at the same level. Some markets witnessed faster growth than others ... Radisson expects growth to exceed 2019 levels with full recovery next year," Younes said.
Average room rates and occupancy rates are still below pre- pandemic levels, while inflation and a slowing global economy will continue to be major challenges for hotel expansion, he added.
High energy and labour costs have diminished profit margins compared to last year, Younes said.
Still, Radisson will continue to expand, and its growth in Thailand underscores this, he said.
Radisson Hotel Group has experienced remarkable growth in Thailand over the last 12 months, adding seven new hotels with more than 1,300 rooms in total.
These include the recently opened Radisson Resort & Suites Phuket, Radisson Resort & Spa Hua Hin, and Lewit Hotel Pattaya.
The group also introduced its mid- to upper-midscale Park Inn by Radisson to Thailand, adding a sixth brand in the country.
Younes said the group's rapid expansion in Thailand is supported by its Bangkok-based business unit, which has tripled the number of staff since it opened in 2021.
"Thailand has been a key growth market for Radisson Hotel Group. This is a strong testament to the relevance of our brands to our owners and guests as well as the local support driven by our business unit in the country," he said.
The group does face challenges in Thailand, particularly a labour shortage, Younes said.
He said the group will provide the highest level of incentives to attract employees, ensure an inclusive working environment and offer in-house training.
Younes said the group is giving every employee an opportunity to advance their careers.
Radisson Hotel Group has more than 1,700 hotels in operation or development in over 120 countries.
