Indonesia’s boutique hospitality and lifestyle company Artotel Group has secured an undisclosed amount in a Series B financing round led by Indies Capital Partners, alongside creative industry-focused Benson Capital.
With the new capital, Artotel intends to pursue a merger and acquisition strategy to expand across Indonesia.
Another portion of the funding will be used to strengthen the group’s core infrastructure, digitise its operations and enhance sustainability throughout the organisation.
“With Indonesia’s hospitality sector at a critical juncture, Artotel is investing heavily into future growth with a focus on quality guest experience and an enhanced geographic footprint,” said founder and CEO Erastus Radjimin.
Targeting Indonesia’s first and second-tier cities and upcoming tourism locations, Artotel is set to roll out 29 new properties around the country, bringing the total number of its properties to over 50 by 2023.
The company will also continue operating properties and building new two- and three-star hotels under the Kyriad brand, its latest acquired hospitality brand launched by France-based Louvre Hotels Group.
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Co-launched in 2013 by siblings Erastus and Christine Radjimin, Artotel has four integrated pillars: hotel (stay), food and beverage (dine), event management (play), and curated merchandise (shop).
The group offers a range of lodgings, ranging from cheap hotels to boutique hotels to premium stays, from mass-market to luxury.
Bobotel, Roomsinc, Artotel are among its hotel brands.
Today, Artotel’s hospitality portfolio has 3,000 rooms, including the 1,300 rooms added from its acquisition of Kyriad’s Indonesia operations.
The group also provides autonomous management of restaurants, bars, and beach clubs in the food and beverage business. It employs a technology-driven strategy to enhance hotel operations infrastructure better to manage booking, management, and guest relations. This covers activities such as brand activation events, online cultural events, and food and beverage delivery.
“Although impacted in the last two years, we are optimistic that Indonesia’s tourism industry will continue to grow post-pandemic based on a burgeoning domestic middle-class and strong international appeal,” said Avina Sugiarto, senior VP at Indies Capital.
Artotel stated that it has consolidated and restructured the company through business planning, increasing business margins and customer satisfaction.
According to the “Hospitality Real Estate Sector In Indonesia” 2020 report, tourism is a significant growth driver for the hospitality industry in Indonesia. The hotel industry is said to be well-developed, offering from five-star hotels to humble guest homes. In 2018, five-star hotels accounted for 39.29 per cent of all the hotels around the country.
The region has also witnessed a clutch of rising travel-tech startups that attract good deals in 2020-2021, signalling the bounceback of the hospitality sector after the pandemic. This includes Singapore’s Vouch and PouchNATION, Indonesia’s Bobobox, and the Philippines’ Mosaic Solutions. Velocity Ventures has also closed its US$20-million fund dedicated to hospitality & travel startups in Southeast Asia this June.
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Image Credit: ARTOTEL Group
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