The trend for competing hotel companies to form operational and marketing alliances continues as on Tuesday Indonesian lifestyle operator ARTOTEL Group formed a strategic alliance with Singapore’s Far East Hospitality (FEH). The two parties will collaborate across operations, cross-branding exposure and training.
ARTOTEL Group will work with Far East Hospitality to expand its presence in Southeast Asia at a regional level, introducing ARTOTEL’s brands to FEH’s network. For Far East Hospitality, the partnership will help enhance its presence in Indonesia and hopefully gain meaningful market share. In Indonesia, ARTOTEL will represent FEH brands, especially its luxury brands, through the group’s distribution channels and ecosystem.
In terms of business growth, both sides will prioritize one another in partnerships and new business opportunities within select jurisdictions of interest. ARTOTEL and FEH will also conduct training exchanges to share industry best practices and increase internal knowledge and expertise across markets.
ARTOTEL currently has 29 new properties in its pipeline across Indonesia, which will bring the total number of properties under the ARTOTEL brand to 50. The company expects resurgent growth in 2021 with the bounce back of Indonesia’s domestic tourism industry and is working closely with strategic partners such as FEH to support the recovery of the industry.
FEH operates a combined portfolio of more than 16,500 rooms under its management across 100 hotels and serviced residences in eight countries. The Singapore-based company has two properties opening in the first quarter of 2021 and more are in the pipeline.
“Singapore and Indonesia are key inbound markets for our respective tourism sector. As such, we see strong synergies for both countries. ARTOTEL Group also has a large distribution in Indonesia where we do not have a presence in,” said Arthur Kiong, CEO of Far East Hospitality. “From a brand architecture perspective, it fits into a niche segment which we are currently not represented. Amid discussions to explore a ‘travel bubble’ between both countries, we look forward to leveraging the strength of our combined portfolio to appeal both domestically and regionally,”
“This strategic alliance is built off a common vision between ARTOTEL Group and Far East Hospitality. Our shared dedication to delivering excellence through hospitality and lifestyle offerings creates opportunities for mutual growth as Southeast Asia emerges into the post-pandemic era,” said Erastus Radjimin, founder and CEO, ARTOTEL Group. “We are excited to partner with the FEH management team, exchanging expertise and best practices in operating boutique hospitality and lifestyle brands across borders. We look forward to providing FEH with our expertise and resources in Indonesia to support their growth in Southeast Asia’s largest consumer market.”