New Delhi-based MBD Group has signed a long-term master franchise agreement with Radisson Hotel Group to launch 50 co-branded properties across India over the next decade. This includes 10 upscale hotels under the Radisson Collection brand and 40 under the lifestyle-focused Radisson RED brand.
Under the terms of the mandate, the two brands - Collection and Red - will be introduced and expanded as Radisson Collection MBD Hotels and Radisson RED MBD Hotels. MBD will lead the business development, management and franchising of these brands for Radisson across the Indian region. The expansion will follow a strategic portfolio model of 80% managed/franchised and 20% MBD-owned properties.
Sonica Malhotra Kandhari, Joint Managing Director, MBD Group, said that the first decade of partnership is targeted to deliver 50 co-branded hotels across Radisson Collection MBD and Radisson RED MBD hotels predominantly through an asset-light model.
“MBD’s prop book exposure will be around 25%. Radisson Collection MBD targeting luxury will have an extremely thought-through placement whereas Radisson RED MBD targeting the lifestyle segment will be a far aggressive expansion. MBD will leverage its pan Indian brand presence, operational excellence and no 1 leadership performance position amongst all Radisson Hotels in the country,” Sonica added.
Talking to TNIE, she said that the Collection-branded hotels will focus primarily on tier 1 cities and popular tourist destinations such as Udaipur and Ranthambore. She added that by the end of the decade, they expect to manage 6,000 keys.
Monica Malhotra Kandhari, Managing Director, MBD Group said that with surging demand for luxury hotels, the Radisson partnership enables MBD Group to tap the pan-India market.
“Radisson Collection MBD will reflect timeless, rooted and curated luxury, while Radisson RED MBD bringing bold, playful and socially driven design and MBD superimposing its beautiful cultural narratives will redefine luxury and lifestyle hospitality in India. MBD has exhibited pinnacle performance be it education or hospitality and with this partnership we aim to become number number 1 luxury and lifestyle brand, Indian origin with Global confluence in the most elegant way,” added Monica.
As per MBD estimate, the overall assets under management for the 50 hotels would be about Rs 10,000 crores. The publishing and edtech giant expects the 50 hotels to generate revenues of Rs 4,500 crores at the end of 10 years with a gross operating margin of 40%. As part of this strategic partnership, the Radisson Blu MBD Hotel Noida will transition to Radisson Collection MBD after undergoing a comprehensive upgrade aligned with the brand’s global standards.
Sonica said that the first MBD-owned hotel is likely to come up in the next three/four years because they just acquired land in Udaipur and Bengaluru.
Nikhil Sharma, Managing Director & Chief Operating Officer, South Asia, Radisson Hotel Group said that the strategic partnership further strengthens their ability to expand Radisson Collection and Radisson RED across key Indian markets, alongside their broader development initiatives.
“MBD Group has been a trusted partner to Radisson Hotel Group for over two decades, and together we are well positioned to scale these brands while creating distinctive hotels that respond to evolving traveller expectations and reinforce our long-term commitment to India,” added Sharma.