Looking to increase its momentum as the pandemic is further controlled, Indonesia’s ARTOTEL Group has completed a Series B round of financing, led by Indies Capital Partners with participation from Benson Capital, and acquired the Indonesian franchise for economy Kyriad brand. The deal includes 11 managed properties throughout the archipelago, adding an additional 1,300 rooms to ARTOTEL’s portfolio.
The round of financing will be further used to drive expansion through an aggressive merger and acquisition strategy. The group plans to actively seek out strategic partnerships with hotel operators throughout Indonesia and will target development in Indonesia’s first-tier and second-tier cities, as well as emerging tourism destinations.
In the near-term, ARTOTEL plans to roll out 29 new properties across Indonesia, which will bring the total number of properties to over 50 by 2023. The new deal brings ARTOTEL’s total room count to approximately 3,000.
As part of the Kyriad deal, a hospitality brand created by France-based Louvre Hotels Group, ARTOTEL will continue to manage the properties under the established Kyriad brand and develop new Kyriad-branded 2- and 3-star hotels in second-tier cities throughout Indonesia.
ARTOTEL also plans to use the new financing to strengthen its infrastructure, further digitize operations, and enhance sustainability throughout the organization. It is going to strengthen its operations infrastructure and plans to create brand activation events, online cultural events and updated food & beverage protocols.
In April, ARTOTEL Group formed a strategic alliance with Singapore’s Far East Hospitality. The two parties will collaborate across operations, cross-branding exposure and training. The deal will allow ARTOTEL to expand its presence in Southeast Asia at a regional level, introducing its brands to Far East’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.