Home Industry Hospitality Radisson’s Tim Cordon on regional strategy, opportunities and innovation The COO – MEA & SEAP, Radisson Hotel Group, delves into its ambitious regional expansion strategies, the distinct challenges and opportunities across different markets by Neesha Salian July 25, 2024 Image: Supplied The Radisson Hotel Group has undergone significant transformation since 2018. Can you shed some light on these changes and the current state of the group? Since 2018, we launched a five-year rolling plan aimed at setting the foundation for growth. The plan included strengthening our digital and operational platforms, consolidating our brand portfolios, and preparing for accelerated growth. Despite the unforeseen global pandemic, we rode those stormy waters and emerged stronger. Today, we’re seeing the accelerated growth we anticipated, thanks to our robust systems and the trust hotel owners place in us. This has been crucial to our expansion. What is the strategy behind the group’s regional expansion, particularly in Saudi Arabia and the UAE? The Middle East, especially Saudi Arabia, presents a once-in-a-generation opportunity in hospitality with the region opening up. Currently, we have about 50 hotels in operation or under development in Saudi Arabia, and we see potential for up to 100 hotels over the next five to eight years. We’re committed to this market by establishing a regional office in Riyadh. In the broader GCC, our approach is opportunistic, with significant interest in Bahrain, Doha, Kuwait, and Oman. Dubai remains a global market, being the third largest hotel market in the world, and continues to show resilience and growth. Regarding Radisson Group’s growth and expansion in Africa, could you elaborate on the growth you’re targeting over the next few years? With Radisson Blu, we already hold the position of the largest international brand in sub-Saharan Africa. We are well-established in many key markets, particularly South Africa, where we currently operate 13 hotels, with a few more set to open in the next year or so. This year, we also launched a wonderful resort in Hoedspruit, marking our entry into the South African safari market. While we remain committed to growth in sub-Saharan Africa, I believe the potential for explosive growth in this region has diminished compared to previous years. We’ve experienced significant growth here and now need to consolidate while continuing to grow organically. Currently, the greatest opportunities for us in Africa lie in Egypt and the French-speaking part of North Africa. Morocco and Tunisia are particularly exciting markets. Our expansion in Morocco has been dramatic, growing from just one hotel five years ago to nine in operation now. Tunisia is also becoming an important market, with several hotels set to open over the next 24 months. Egypt, too, is a fascinating market. Although we’ve operated there for a long time, we now recognise the need to realise its full potential and expand aggressively. As an asset-light company, we manage other people’s assets rather than owning and building hotels ourselves. This means we rely on partnerships to identify and seize opportunities. Our role is to maximise the profitability of these assets and deliver the best possible returns for our partners, a task we excel at. Some markets are more resistant to change and slower to adopt new technologies. It’s essential to respect cultural differences and recognise that people adapt at different paces. Strategies need to be flexible and tailored to specific markets rather than assuming one approach will work everywhere. For example, Nigeria is very different from Dubai, and we need to acknowledge and adapt to these differences. In terms of market differences, particularly between the Middle East and Africa, it’s crucial to understand that Africa comprises 54 countries, each with its own unique identity and cultural heritage. Morocco, Cameroon, and South Africa are as distinct from each other as Dubai is from Kuwait or Nigeria. We must respect these differences, engage with people appropriately, and leverage these unique aspects rather than ignoring them. Our approach is not one-size-fits-all; we adapt to the specific needs and characteristics of each market. As an asset-light company, we manage other people’s assets and focus on maximising profitability for our partners. Our success largely depends on our people. We emphasise diversity and inclusion, especially gender diversity, and have plans in place to promote women to leadership positions. Programmes like Accelerate, our leadership development program, and Spotlight, our sponsorship programme aim to develop female talent and ensure they have opportunities for advancement. How does Radisson Hotel Group support sustainability in the hospitality sector? Sustainability has always been a core part of our business, influenced by our Scandinavian roots. We partnered with the World Travel & Tourism Council on the Hotel Sustainability Basics initiative to self-regulate and set minimum standards for sustainable operations. The initiative not only enhances our reputation but also increases booking conversions. Our sustainability programme focuses on green operations, green buildings, and green energy, ensuring we operate efficiently and use the most sustainable energy sources. What consumer trends are emerging in the hospitality industry, and how is Radisson adapting to them? Consumers now seek experiential travel and meaningful experiences rather than just a place to stay. Each Radisson hotel is tasked with providing unique local experiences. From a talent perspective, the younger generation demands a clear vision and mission from their employers. We emphasise the ‘why’ behind our operations and ensure our employees understand and align with our goals. How is technology being leveraged to improve customer experience at Radisson? I can’t talk about innovation without highlighting our website. We’ve translated it into more languages than any other hotel company globally, and it has won numerous awards from the technology sector. While we are a hotel company, our website has received recognition from technology organisations and is the fastest-growing brand web production globally. Our app, awarded by Google and the fastest-growing in the hospitality sector, facilitates communication, bookings, loyalty management, and soon, mobile check-ins. Additionally, our Radisson Awards programme, a groundbreaking loyalty initiative, is now the fastest-growing in the world. These innovations significantly enhance our business operations and the results we deliver to our partners. What can we expect from Radisson Hotel Group soon? We are committed to constant improvement and growth. By the end of the year and into the next, we will continue to open new hotels and improve our operations. At Radisson, we never stop moving. The only thing that stays constant is our desire to improve. Our business philosophy is not about perfection; it’s about improvement. Constant improvement every single day. Each day, I strive to be slightly better or significantly better than the day before. By continually focusing on improvement, we build momentum, which accelerates our progress and growth. This approach leads to excellence, improved results, motivated teams, and empowered people. We aim for substantial achievements in the coming years, but our primary focus is on how we manage the business today to build the fundamentals that will deliver those future successes. This daily commitment to improvement ensures we are always advancing and setting the stage for long-term growth and excellence. How do you define leadership, both personally and for the Radisson brand? Leadership involves building trust, empowering teams, and enabling them to make decisions. It’s about challenging boundaries and encouraging innovation. For Radisson, this means having motivated and empowered people who deliver exceptional experiences. I focus on ensuring we have the right people in the right roles, providing them with the tools they need, and then stepping back to let them lead. Tags Hospitality Interview MEA region Radisson Hotel Group Sustainability Technology Tim Cordon You might also like Leading with passion: The CEO’s journey and strategic goals for Emirates Park Zoo DBLC’s Jassim Al Gallaf on how Dubai is supporting investors Insights: The rise of banking-as-a-service and its impact Bacha Coffee’s Maranda Barnes on redefining the coffee experience in the GCC