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TWO leading local brands, ARTOTEL Group acquired Dafam Hotel Management (DHM) to build the Indonesian hospitality industry ecosystem to be stronger, bigger and able to host in their own country when entertaining foreign and local tourists. The agreement for the two brands was conveyed by both parties on Tuesday (12/07) in Jakarta.
According to Erastus Radjimin, Founder and CEO, ARTOTEL Group said ARTOTEL Group will utilize the proceeds of this financing to drive expansion through an aggressive merger and acquisition strategy in Indonesia’s hospitality sector and invest in strengthening the group’s core business infrastructure, digitizing operations, and enhancing sustainability throughout the organization.
“With this round of financing, ARTOTEL Group will actively seek out strategic partnerships with hotel operators throughout Indonesia and aggressively pursue mergers & acquisitions with high-quality Indonesian hospitality companies, just like today finally ARTOTEL Group acquired Dafam Hotel Management,” he said.
Erastus Radjimin explained we did not want to passively wait for the pandemic to end so we took initiative to acquire DHM and by acquiring DHM and making 24 of their hotels spread throughout Indonesia into the ARTOTEL Group portfolio. This acquisition is part of ARTOTEL Group’s mission to create a strong hospitality ecosystem so that domestic and foreign customers can get the most out of a high-quality hospitality experience.
“With the percentage composition of ARTOTEL Group at 60% and DHM at 40%, numerically, this acquisition is a strategy to increase market range or to add volume numbers. If we have 50 hotels with occupancy, for example 50%, then multiplied by 2,500 people and multiplied by 30 days, this will look big,” he remarked.
Eratus Radjimin added, with this number, there is an ecosystem that is formed and supports each other or supports each other. However, when asked about the acquisition value, it is quite large, but I cannot give a numerical value, what is clear is that ARTOTEL Group is the super majority in this percentage. But most importantly, this is the latest acquisition by ARTOTEL Group from a series of property acquisitions carried out this year as part of its mission to build an internationally recognized Indonesian hospitality business empire.
Meanwhile, Eduard Rudolf Pangkerego, Chief Operating Officer (COO) of ARTOTEL Group stated, with the acquisition of DHM, we want to become the “Middle Axis” for the Indonesian hospitality industry to be stronger and bigger so that it can move the ecosystem in it.
“With this acquisition, we hope to build an ecosystem that drives the national economy from hospitality. This will increase the public rate and the ecosystem itself. And this is what investors will be looking for,” he noted.
Likewise, Andhy Irawan, MBA, Chief Executive Officer of Dafam Hotel Management (DHM) on the same occasion added that two years ago, many DHMs wanted to “propose” such as several foreign hotel operators from Japan, Spain and others with 100% acquisition status.
“But DHM firmly refused, because DHM “DNA” was Indonesian. Then our mindset changed. We wanted to be big before the pandemic, but after the pandemic, it sharpened the focus of the hospitality business by being acquired by the ARTOTEL Group, not a merger,” he said.
Andhy Irawan concluded that as of July 2021, DHM has been present in 17 cities, covering the operational activities of 24 hotels with 2,507 rooms, and employing 1,047 employees with the acquisition of DHM by ARTOTEL Group because they have the same chemistry, which is not to be the best between the two brands. But to be the biggest in the hospitality industry in Indonesia. [traveltext.id]
