Weddings & Pilgrimage Powering Small-City Stays

India’s hospitality map is undergoing a significant change. Growth is shifting beyond the metros into tier-II and III towns, driven by weddings, pilgrim tourism and offbeat explorations. Therefore, leading hotel chains are switching over to a conversion-led strategy that ensures hotels open quickly, capture early market share and set the service benchmark where organised hospitality is still shaping up. One of the first international brands to enter these markets is the Radisson Hotel Group that is focused on building loyalty and guest trust early. As NIKHIL Sharma, Managing Director and COO - South Asia, Radisson Hotel Group, says, this trend is driven by the confidence that such properties will remain competitive, deliver strong returns and help define a new standard of organised hospitality in smaller cities.

Growth may come in small packages, but when it does the scenario begins to change rapidly. That is what is happening in India’s tier-II and III cities and towns, where the socio-economic picture has taken a new shape, meaning and a new aspirational culture. This has affected the country’s hospitality sector too where demand is no longer restricted to metropolitan centres but is being fuelled by diversified, confident domestic travellers.

The rise of middle-income consumers, improved lastmile connectivity and the government’s focus on airports, highways and cultural corridors are creating unexplored demand centres across the country. “Leisure travellers are exploring destinations within a few hours’ drive, spiritual and heritage circuits are attracting steady year-round footfall, and fast-growing regional business hubs are generating weekday commercial demand. These structural shifts are expanding the hospitality map of India, and for us they validate the longterm potential of growing our portfolio beyond metro cities,” says Nikhil.

In Tandem with Ground Realities

The conviction about emerging cities comes from evidence on the ground. In several of Radisson Hotel Group’s existing non-metro locations, the company has observed that the moment a branded hotel enters the market, guest expectations and owner interest evolve as the overall quality of demand improves. These cities today have stronger corporate ecosystems, thriving SME clusters, higher wedding and banqueting demand, and growing spiritual tourism. “Our brand architecture, from Radisson Blu to Radisson Individuals, allows us to match the right product to each city, while our proven strength in conversions ensures faster openings and better returns for owners,” Nikhil informs.

This combination of demand stability, owner appetite and brand flexibility is what drives the ambition of many of those in the hospitality sector to expand beyond metros. “Our target plan is to cover 200 such locations across the country,” Nikhil states.

Demand Drivers

Over the past five years, destination weddings, spiritual tourism and pilgrim circuits have grown significantly in non-metro India, leading to a surge in the hospitality industry. “Destination weddings and spiritual tourism are no longer niche categories in India; they are major demand drivers influencing both performance and investment decisions in emerging cities,” Nikhil explains.

Weddings bring high-value, multidepartment revenues lasting several days, which makes them extremely attractive for owners and operators. Pilgrim and spiritual circuits, on the other hand, provide high, predictable occupancy throughout the year which stabilises performance even in off-peak seasons.

As a result, more hotels are being designed with flexible banquet spaces, larger lawns, resort-like amenities and family-friendly room categories. What’s more, the marketing of such amenities has become more proactive, with leading chains advertising such facilities and offering discounted packages. Such segments have widened the revenue base of non-metro hotels, making these cities attractive long-term investment markets.

From Himalayan shrines to centuries-old temples, mosques, monasteries and churches, pilgrim tourism forms a major part of India’s travel tapestry. It draws millions each year; devotees seeking blessings, travellers seeking cultural immersion and, increasingly, younger tourists seeking ‘purposeful travel’.

Getting Smarter, Greener, Local Frontier

Guests in smaller cities are increasingly seeking elevated, eco-smart and experiential stays, which is driving innovations in guestrooms, technology, sustainability and curated local experiences. This is why hotels, akin to what the Radisson Hotel Group has undertaken, are rolling out digital check-in, smart room controls, AI-enabled service requests and integrated guest apps that make the stay frictionless. At the same time, many are strengthening local relevance through design that incorporates regional materials, destination-led storytelling and curated food and beverage concepts based on local cuisines and ingredients.

This blend of sustainability, technology and cultural authenticity ensures guests enjoy global consistency with an elevated sense of place. “Across our portfolio, we have introduced energy-efficient systems, water-saving infrastructure and waste reduction processes aligned with the group’s responsible business targets,” Nikhil shares. 

Tailoring Service Models

As domestic leisure and MICE (Meetings, Incentives, Conferences and Exhibitions or Events) travel rises in emerging markets, certain hotel chains are tailoring their service models, infrastructure design and food and beverage offerings to reflect local culture while preserving global standards. For instance, Radisson Hotel Group aims to retain the consistency and trust of its brand while giving every hotel the freedom to celebrate the culture of its city. “We do this by embedding local influences in architecture, landscape, art and interiors, and by encouraging culinary teams to highlight regional flavours and traditional cooking styles,” Nikhil adds.

The group maintains uniform global standards for safety, hygiene, training and digital services, while guest experiences are curated to offer region-specific activities, whether through guided excursions, partnerships with local artisans or seasonal menus inspired by festivals. “This balance helps us deliver the reassurance of an international hotel with the warmth and familiarity that domestic travellers’ value,” Nikhil says. For example, destination weddings in tier-II and III cities have their specific demands, especially regarding food and beverage, which hotels in these locations accommodate carefully.

Not Without Challenges

Expanding into emerging markets comes with its own set of challenges like availability of trained hospitality talent, consistent supply chains and strong pre-opening support. “We are addressing this by building deeper partnerships with local institutes, creating accelerated training programmes and deploying leadership rotations that bring experienced teams into new markets,” Nikhil informs.

The group’s digital operating systems and standardised playbooks reduce complexity on the ground and help smaller city hotels maintain the same efficiency and guest experience as those in the metros. “We also work closely with owners on design planning to ensure the hotel is built for operational practicality from day one,” he adds.

Balancing Supply & Demand

Industry players believe non-metro markets will play a decisive role in the next decade of growth. These markets will enable hotels to grow their footprint strategically, build clusters that strengthen distribution and talent mobility, and diversify the business mix across leisure, weddings, corporate travel and spiritual tourism. “Over the next five years, we expect travellers in these markets to demand sustainable design, smarter rooms, seamless digital services and experiences that help them connect with local culture,” Nikhil says. The Radisson Hotel Group’s development strategy, with a strong pipeline of conversions, mid-scale offerings and high-quality independent hotels joining Radisson Individuals, positions it to meet these expectations at scale.

However, as leading hotel chains explore tier-II and III locations, it raises a pertinent concern of creating oversupply before organic demand catches up. Nikhil feels oversupply is a risk only when development is speculative. “Our approach is calibrated, data-driven and focused on markets where we see clear visibility of future demand. We work closely with owners to evaluate corporate clusters, wedding and banqueting potential, regional airport connectivity and local tourism trends before committing to a project,” he concludes, dismissing the fears.