With over two decades of experience in the industry, Sandeep Joshi, Area General Manager, South India for Radisson Hotel Group, South Asia, and the General Manager of Radisson Blu Plaza Hotel Hyderabad Banjara Hills has consistently demonstrated a remarkable ability to transform operational challenges into opportunities for growth and innovation. Under his stewardship, the Radisson Blu Plaza Hotel Hyderabad has witnessed an extraordinary turnaround in financial performance, achieving a 30% increase in EBITDA over the past two years and an impressive long-term growth in profitability. As the Area General Manager for South India, he oversees an expansive portfolio of 21 properties, balancing operational efficiency with strategic innovation across multiple states. In an exclusive interview, with Asmita Mukherjee, Joshi shares his journey and his vision for the future of Radisson Blu Plaza Hotel Hyderabad Banjara Hills.
As the General Manager of Radisson Blu Hotel, Hyderabad Banjara Hills, what stands out as your most significant achievement?
The most significant achievement is the demonstrable improvement in the hotel’s financial performance, specifically the bottom line as reflected in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Over the past two years, we have achieved a 30% increase in EBITDA. Cumulatively, across the eight-year period, the hotel’s profitability has grown from 22% to 47%, representing substantial commercial enhancement for the asset.
You have also assumed responsibilities as the Area General Manager for South India. Could you elaborate on the scope of this role?
Yes, in addition to my hotel leadership role, I serve as the Area General Manager for South India. This portfolio encompasses 21 hotels across the five southern states. My involvement spans both managed and franchise properties within this region.
Managing a single hotel while overseeing a portfolio of 21 properties presents complexities. How do you navigate these dual responsibilities?
Managing the South India area while based in the South is manageable. The role requires a degree of growth and adaptation over time. Within the hotel, I am supported by a robust Head of Department team and a dedicated second-in-command who handles day-to-day operations. This structure facilitates my ability to dedicate necessary focus to both the hotel and the area responsibilities. Having been in the Area General Manager role for approximately four years, the management process has become more streamlined.
What is the USP of Radisson Blu Plaza Hotel Hyderabad Banjara Hills?
The primary USP is our room size, which is the largest in the city for our category. As a ‘Plaza’ category hotel within the brand standards, our minimum room size is 490 sq ft, approaching 500 sq ft. Our suites, including the Presidential Suite which features a balcony, extend up to 2200 sq ft, making them particularly suitable for extended stays, functioning almost like serviced apartments. Secondly, despite our central location in Banjara Hills, the hotel offers a serene and quiet environment, providing a distinct “resort-like” feel away from the immediate hustle, which is highly valued by guests. These attributes significantly differentiate us from the competition.
How has the market performed in terms of RevPAR and ADR for Hyderabad and your hotel specifically?
Recent market surveys for 2024 indicate Hyderabad city achieved the highest RevPAR growth nationwide, reporting a significant 29% increase year-on-year. Most hotels in the city experienced double-digit RevPAR growth. This trend is largely driven by robust demand coupled with limited new supply entering the market. The growth has been primarily fueled by ADR rather than occupancy, as occupancy levels were already strong. The city has seen an approximate 14% growth in ADR from the previous year which is 2023. The post-pandemic period has shown exponential growth, with 2023 surpassing 2019 benchmarks and 2024 exceeding 2023 performance. Projections for 2025 were initially very positive; however, prevailing geopolitical situations have introduced a slight negative sentiment impacting travel confidence, leading to some cancellations in both room and event bookings.
Could you highlight specific sustainable hospitality practices being implemented at the hotel?
We are actively involved in sustainability initiatives aligned with the brand’s commitment to achieving net-zero carbon emissions by 2050. Key practices include utilising Electric Vehicles for hotel transportation and establishing a partnership for an on-site fast EV charging station. We have also implemented dispensers for bathroom amenities to eliminate single-use plastic miniature bottles, contributing to waste reduction and operational cost savings. Furthermore, operating an in-house state-of-the-art water bottling plant has resulted in the elimination of approximately 500,000 plastic bottles annually. We adopt a green housekeeping protocol, including a “Do Not Clean” (DNC) program allowing guests, particularly business travelers on short stays, to opt out of daily room cleaning and linen changes; extended-stay guests are also encouraged to opt for less frequent linen changes, conserving significant water and resources. The hotel is certified under the World Travel & Tourism Council’s (WTTC) Hotel Sustainability Basics (HSB) program, demonstrating compliance with 12 sustainability parameters; this certification is highlighted on OTA platforms and the hotel website, positively influencing guest preference towards sustainable accommodations.
Can you describe the guest profile and their average length of stay?
As a business hotel, approximately 85% of our guests are business travelers. Weekends see a minor influx around 10% from the leisure market, although Hyderabad is not a significant leisure destination. A notable segment comprises medical tourism guests, often visiting specialised hospitals. Geographically, medical tourists frequently originate from Europe and the Middle East.
Which regions are your key contributors?
Major metropolitan cities like Delhi and Mumbai are very important source markets. Mumbai, including business from Gujarat, contributes significantly from the pharmaceutical sector, while Delhi provides a substantial corporate client base.
How significant is ancillary revenue for the hotel, and what does it typically encompass?
Ancillary revenue typically accounts for a modest percentage of total revenue, generally ranging from approximately 3% to 5% for most hotels. This revenue stream comprises income generated from rentals, spa operations, the travel desk, and potentially including minibar sales. Our primary objective is to enhance the guest experience through the provision of these services. Many of these operations, such as the spa and travel desk, are managed by third-party partners. We place a high priority on collaborating with reputable partners, based on the conviction that a superior customer experience will ultimately yield increased revenue.
With the recent launch of our outdoor catering service, we are enthusiastic about extending our food and beverage offerings and exploring opportunities within the event sector. Consequently, we anticipate that our outdoor catering segment will also contribute significantly to the ancillary revenue stream.
What are the key plans and future vision for the hotel, including any significant upgrades or strategic focuses over the next five years?
Our plans for the hotel are centered on three primary strategic pillars, guided by our brand’s direction: enhancing the guest experience, adapting to new technologies, and driving sustainability.
Firstly, Guest Experience Enhancement is a top priority. A crucial part of this is a comprehensive top-to-bottom renovation that has already commenced at our hotel. This extensive project began in March 2024 and is scheduled over a 24-month period, with completion anticipated by 2026. The renovation scope is extensive, starting with the swimming pool, then moving to banquets and public spaces, and finally to the guest rooms. To ensure continuous service, the hotel will not close entirely; instead, we will implement partial closures, maintaining operations with approximately half of our room inventory and services available throughout the renovation period. Beyond physical upgrades, we are also focused on evolving our service offerings to meet changing customer expectations, such as by enhancing in-room dining options, as we recognize that many business travelers increasingly prefer the convenience of working and dining in their rooms.
Secondly, we are committed to Technology Adaptation across all facets of our operations. Our goal is to become increasingly tech-savvy, which includes streamlining check-in processes, leveraging Artificial Intelligence in revenue management, implementing digital menus and QR code functionalities, and enabling guests to control in-room amenities via their mobile devices.
Thirdly, a significant long-term commitment is our Sustainability Drive. We are pursuing the ambitious vision of achieving net-zero carbon emissions by 2050. This involves strategic capital expenditure, the adoption of innovative ideas, and heeding expert advice. Our current renovation project directly incorporates technological advancements to improve sustainability; for instance, we are transitioning from diesel boilers to electric heat pumps for our laundry operations, which will eliminate the use of fossil fuels in that area and reduce our carbon footprint.
What is the approximate contribution of F&B revenue to the hotel’s total revenue?
The F&B contribution varies depending on the hotel’s configuration, particularly the scale of its banqueting facilities. For a hotel like ours, without extensive large banqueting spaces, F&B typically contributes around 30% to 35% of total revenue. Properties with significant banquet areas and outdoor event spaces can see F&B contributions reach as high as 50% of room revenue. For this specific hotel, the F&B contribution is approximately 30%.
The hospitality industry has reported talent challenges post-COVID. Is this talent crunch evident in Hyderabad, or do you maintain sufficient staffing levels?
City-wide, yes, there is a talent crunch. The industry’s image suffered during and immediately after COVID due to its vulnerability and retrenchments. However, this image is slowly changing. Salary packages have improved, not just within hotels but also in comparison to other service industries like retail, hospitals, and facility management. More importantly, there’s a focus on work-life balance. Most of our Radisson hotels have nine-hour shifts, and overtime is paid. Many hotels are moving to five-day work weeks. Training has also become crucial. We focus heavily on training, often delivered digitally via mobile devices, allowing for self-paced learning followed by practical application. This focus on skill development, beyond just monetary compensation, helps in retaining talent.
What underlying challenges or requirements do you see for sustaining this growth and elevating Hyderabad’s position as a destination, particularly for large-scale events?
The current demand-supply dynamics in the Hyderabad market are very favorable. However, for the city to consistently attract and successfully host large-scale international events, its infrastructure – including road quality, ongoing construction management, and power availability – needs to meet global standards. A crucial point is the urgent need for the state government to officially grant “industry” status to the hospitality sector. Currently, we are not recognised as an industry and thus do not receive the benefits and support structures that typically accompany this status, despite our significant contributions through tax revenue and infrastructure development. Many other states in India have already provided this recognition. Granting industry status to tourism and hospitality would significantly support our sector’s growth, enabling us to contribute more effectively to the state’s economic development, particularly given our labor-intensive nature and substantial employment generation.
asmita.mukherjee@saffronsynergies.in