Indonesian hotel group acquires compatriot

L-r: Eduard R Pangkerego, COO, Artotel Group and Samudra-Hendro, director, MPHG.
Indonesia-headquartered hotel operator Artotel Group has acquired compatriot competitor Milestone Pacific Hotel Group (MPHG).

Artotel believes the deal will strengthen its position in becoming a leading Indonesian hospitality management company.

Bountiful brands

MPHG has six hotel brands: Maxone, Nite & Day, Zia, Ruma Ruma, Marc, and One of a Kind, collectively comprising 45 hotels located in several provinces and second-tier regions in Indonesia. The sites target the middle and economy-class markets.

By controlling the majority stake in MPHG, Artotel now manages more than 100 properties with different hotel brands, namely Artotel, Dafam, Kyriad, and Maxone, which are spread throughout Indonesia from Aceh to Papua. 

Wider options

In addition, Artotel now not only specialises in boutique hotels with art and lifestyle concepts, but also provides a wide variety of accommodation options, from luxury, boutique, to economical hotels that can meet the accommodation needs of Indonesia’s large domestic market, both for business and leisure needs.

The group has a pipeline of 50 other new hotel projects that will join its portfolio through to 2025.

Rapid development

Artotel’s rapid development has been achieved within three years, as in 2020 the company only managed 17 hotels and of course experienced the challenges of the covid pandemic.

Since then, the group has managed to gain support from investors who believe in its ability as a reliable local hotel operator and can become an Indonesian company that competes in the international arena. Therefore, Artotel has managed to rise by carrying out various aggressive business expansion actions since 2021 such as acquiring the Indonesia franchise of Kyriad, as well as acquiring leading Indonesian local brands such as Dafam and Maxone.

Sustainable strategy

Erastus Radjimin, founder and CEO of Artotel Group said: “The success we have achieved by managing more than 100 hotels does not make us forget ourselves, in fact, it makes it a bigger responsibility to provide the best service to our stakeholders, not only to our guests or customers, but also to hotel owners, employees and partners.

“Therefore, we have prepared a sustainable business strategy for increasing hotel revenues and the welfare of our stakeholders by prioritising technology-based infrastructure so that hotel operations become efficient and effective for guest satisfaction, as well as expanding our hotel’s distribution network to increase the revenue of each hotel we manage.”