Indonesian businesses Artotel and U Stay have agreed a strategic partnership to help grow their joint presence in the country’s hospitality sector.
Under the agreement, Artotel Group will operate all four current U Stay properties, in Jakarta and Bali, under hotel management agreements. Two will be branded U Stay by Artotel, in Mangga Besar and Asem Baris. The U Stay Style Batik by Artotel will welcome guests in Jakarta, while in Bali the offering will be named U Stay Aqilah Villa by Artotel.
Expanding Coverage in Indonesia
The addition of these properties will grow the Artotel portfolio by 250 rooms. “The economy segment represents significant growth potential in Indonesia,” noted Erastus Radjimin, founder and CEO of Artotel Group. “Through this collaboration, we are not only expanding our portfolio but also enhancing our ability to serve the increasingly diverse needs of domestic travellers across Indonesia, whether for business or leisure.”
With Artotel supporting operations across the portfolio, U Stay management executives will now concentrate on fast growth. “Over the next three years, U Stay is targeting the addition of up to 50 hotels, equivalent to approximately 5,000 rooms,” declared Nofel Saleh Hilabi, Founder of U Stay Group. “Our focus is on investment, acquisition, and ownership of hospitality assets.”
Artotel already operates more than 100 hotels across Indonesia. Apart from its own brands, such as Artotel, Defame, Maxone and Rooms Inc, it is also a strategic partner for the Louvre Group, supporting its growth in the region of its brands Kyriad, Golden Tulip, and Royal Tulip.
Other major domestic players in the Indonesian hotel market include Archipelago Internatonal, and Santika Hotels & Resorts. These local specialists mix in with the major brand groups such as Accor, Wyndham, Marriott and IHG, who are keenly seeking growth opportunities. The country’s tourism market is growing at a compound annual rate of more than 6%, with over 16 million international arrivals expected in 2026.
Local Groups Mix in with Big Hotel Brands
International brands dominate in the city of Jakarta. There, IHG has just opened its luxury 127 room Regent hotel, while extended stay units from Citadines and Oakwood will be opening shortly. The Ascott will also be bringing its Harris hotel brand to the city, before the year end. Marriott has two upcoming openings, the 430 room Sari Pacific Jakarta, Autograph Collection is opening shortly and will be joined in spring 2027 by the Jakarta Marriott Hotel Gelora.
Outside the capital, Archipelago International is making progress with its four star Aston brand. It will open the 200 room Aston Kuningan Hotel & Conference Center in late 2026, followed by Aston Inn Pasar Kemis – Tangerang in spring 2027. In what will be a busy year for the brand, further openings are scheduled in Morowali, Depok City, Kediri and Blitar.
