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TO MAKE Artotel Group (AG) a flagship local hotel brand and created an innovative concepts and blended needs of today’s expectation and want to be a local leader in the hospitality industry, AG hosted the Leaders’ Summit 2024, an activity that brings together hotel industry leaders from all over Indonesia who are members of the Artotel Group hotel network.
According to Erastus Radjimin, Founder and CEO of Artotel Group in his presentation at the opening of the Artotel Group Leaders Summit 2024, Thursday (12/05), 2024 said an activity that brings together hotel industry leaders from all over Indonesia who are members of the Artotel Group hotel network.
“With the theme ‘Leading Change for the Better Tomorrow’, this event aims to discuss leadership strategies, innovation and transformation of the hospitality industry in addressing global challenges and supporting sustainable tourism,” he said.
In his presentation, Erastus Radjimin explained that in order to pressure the leadership among AGs themselves who face global challenges and support sustainable tourism, we need extra efforts in implementing AG’s own goals.
“As you know, Artotel grew from one hotel, to three, and then to a hotel management company that operates third-party properties under its brand. Currently, we have 100 operating hotels, and we aim to become the largest hospitality company in Indonesia in the next two years,” said Radjimin.
But for Radjimin, the biggest milestone for ARTOTEL so far has been the pandemic. Apart from staying strong during these challenging times, he is proud of the fact that the company grew from 14 to 56 hotels under the brand during the crisis.
Of course, some of the acquisitions and expansions took place at a time when the hospitality and tourism industry was more restrained than others. It was quite risky to start up during the pandemic, but we know the strength of Indonesia’s tourism sector.
Eratus Radjimin continued, we are now a multi-brand company. Before, we were a homogeneous hospitality company with one brand. Now we are a multi-brand company; we can serve a larger mass market. We have expanded the market reach for Artotel Group and we now have more cities to cover.
If we talk about AG’s own achievements, Eratus Radjimin continued, talking about the current integration of hotels within AG, the Artotel and Maxone brand integration systems are already running at 100%, while Dafam is still around 50%. For loyalty program, Artotel and Maxone 100%, Dafam 50%. Now, while for centralized distribution, Artotel brand has reached 100%, Maxone 10% and Dafam 0% so far.
“Speaking of Wanderlust in historic growth in 2024, with a total registered active member of over 600,000 growing two times from last year from the number of properties on board 70. While for the book direct rate varies a lot across properties 15-20%, which means good performers have achieved,” he said.
But for occupancy (%OCC), average room rate (ARR), revenue per available room (revpar) and revenue, when compared to 2023 for OCC it reached 61.03%, ARR (413), revpar (252), while for 2024 it increased overall for %OCC up 2.56%, ARR (up 10.45%), revpar (up 13.28% and for revenue it increased around 11.15%.
However, when asked about brand research updated populix, Eratus answered directly that our group ranks number eight in brand awareness level and out of top 12 brand groups/hotel chains. While for development AG currently operates 100 hotels and project signing 14 hotels, which is actually a target of 30 hotels.
“Well, for the 2025 goal, AG is 100% ready to face competition in the hospitality industry and will become a top 5 hotel awareness with 13 properties opening, and for the Wanderlust program, the direct booking rate can reach 15% accorss all properties,” Eratus Rajimin underlined.
Then he notes what his next steps would be, number one is to make this company even bigger. Our goal is to become the largest hospitality company made in Indonesia. For Indonesia, by Indonesia. And of course to eventually export this Indonesian brand to at least Southeast Asia.
Last but not least, when asked about the investment in the development of the AG, he answered that Artotel Group will use the proceeds of this financing to drive expansion through an aggressive merger and acquisition strategy in the Indonesian hospitality sector, as well as invest in strengthening the group’s core business infrastructure, digitizing operations, and improving sustainability across the organization.
“With this round of financing, Artotel Group will actively seek strategic partnerships with hotel operators across Indonesia and aggressively pursue mergers and acquisitions with quality Indonesian hotel companies,” he concluded.
Meanwhile, Pandu Sjahrir, Managing Partner of Indies Capital, said at the same event Artotel Group is one of the major hotel operators in Indonesia and has taken significant steps to change its operations to protect and preserve the environment, reflecting and responding to the concern for the environment, which is a very visible trend, and also with the ‘People Culture’ concept.
“With the “People Culture” concept, which makes the integration of cooperation between all employees and the AG team as a trusted partner to drive the expansion and digitalization of operations to ensure the company’s long-term sustainable growth, we are sure that AG as a leader in Indonesia’s hospitality sector,” said Pandu Sjahrir.
Through its combination of hospitality, creativity and lifestyle, Artotel Group is creating a dynamic brand focused on quality experiences for both international and domestic guests. With People Culture concept’s expertise in the creative industry, AG’s resources provide significant support to the group’s unique art-inspired offerings,” he said.
No wonder, each of the Artotel Group’s hotels are able to steal both different layers of the market such as business owners and consumers. However, in the future, this Artotel Group might be able to keep stealing the market’s devotion and loyalty because the hospitality industry is dynamic and the market is fragile.
“I am very proud of AG’s achievements, but I am not questioning the numbers of its achievements, but I look more at the concept of “people culture”. Now, in the second year, we have partnered on the integration of leadership, communication, teamwork, which is very important. The next step is that AG will become a group not only with sustainability but also with character. So with the concept of ‘people culture’ in AG is very important to create reliable leaders and become all customers so that AG values can be achieved,” Pandu elaborated.
Likewise, Harold Ong, Partner Indies Capital, said that he will disburse US$85 million for the hotel management industry in nationwide. Meanwhile, Artotel Group, a hotel management company in Indonesia, which received Series B funding from Indies Capital Partners with an undisclosed investment value, will use the funds to expand its hotel network through mergers and acquisitions.
“We are confident that Artotel Group will be able to achieve significant growth momentum and are optimistic that the tourism industry will continue to develop. This confidence cannot be separated from the growth and attractiveness of Indonesian tourism in the eyes of the world, and AG has developed a unique model of Indonesian hotel industry by combining aspects of local Indonesian culture and best practices in global hospitality,” said Harold Ong.
However, when asked why Indies Capital remains enthusiastic about investing in the Indonesian hotel sector? Harol Ong delivered that today we have invested in 200 hotels wide, not only in Jakarta, Bali itself but we more in every big city in Indonesia, our project target is 300 hotels are enough.
“But the important thing that we are ready to work together in the future and become a trusted partner of Artotel Group in driving the company’s expansion and digitalization of hotel operations to ensure AG’s long-term growth to become a leader in the Indonesian hospitality industry,” he concluded. [traveltext.id]
