Main Photo: The ARTOTEL Thamrin Jakarta
Date: May 2021
Locations: Singapore and Indonesia
Names: Far East Hospitality Management and ARTOTEL Group
No. of Keys: TBA
The Two Parties: Singapore-based Far East Hospitality Management has announced its strategic partnership with Indonesia-based ARTOTEL Group, a boutique hospitality and lifestyle group, to collaborate on operations, branding, and training, as well as support business growth across markets.
The move is part of Far East’s larger plan to increase its footprint within the region. Arthur Kiong, Chief Executive Officer of Far East Hospitality Management mentioned that he expects to see strong synergies for both Singapore and Indonesia as both are key inbound markets for their respective tourism sectors.
Under the Strategic Alliance agreement, both Far East and ARTOTEL will be represented as an “Affiliate Brand” in their ecosystem and distribution channels. ARTOTEL will be able to capitalise on this opportunity to enhance its presence in Indonesia and obtain meaningful market share while Far East will be able to tap on ARTOTEL’s large network in the market.
Apart from the Indonesia market, Far East is also expanding its presence in Japan and Singapore. Slated to open in June 2021, the 277-key Far East Village Hotel Yokohama follows the 306-key Far East Village Hotel Ariake that opened in July 2020. In the second half of 2021, Far East will also open the 191-key Oasia Resort Sentosa, it’s fourth property on Sentosa island that is managed and operated internally.
Far East operates a combined portfolio of more than 16,500 rooms under its management across 100 hotels and serviced residences in eight countries. The company continues to forge ahead with local and regional expansion plans, with two properties opening in the first quarter of 2021 and more are in the pipeline.
ARTOTEL is rolling out 29 new properties in its pipeline across Indonesia, bringing the total number of properties under the brand to 50, including Artotel Haniman Ubud in Bali, De Braga by Artotel in Bandung and Alpines by Artotel in Malang.
The company is headed up by founder Erastus Radjimin. At the tender age of 32, he said “By 2020, we will have 20 hotels,” says the young entrepreneur, who was raised in the hotel industry. “We are very blessed that every hotel that we are managing is performing better than the competition.
“One piece of advice that I hold dearly came from my father (R.J. Radjimin). He said we have to be honest and transparent in business. We cannot have a bad name, especially in this industry. We depend on having a good name and a reputation that breeds confidence and trust. For me, success is about creating valuable hotels that are impactful to people.” So he has fulfilled his promise!
THPT Comment: These two sizeable hotel groups have entered into this strategic partnership for very sensible reasons. With post-Covid recovery on the horizon, might we see many more of such arrangements? ARTOTEL’s hotels, like the one featured, certainly live upto their name.
The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market.