Archipelago’s Neo brand debuts in Indonesia

ARCHIPELAGO International launched its inaugural Hotel Neo by Aston property yesterday with the soft opening of Neo Hotel Cideng Jakarta.

Positioned as a budget brand, Neo is pitched slightly higher than Archipelago’s other budget brand, Favehotel.

Norbert Vas, vice president sales and marketing, Archipelago International, said: “We call (Neo) a superior select service hotel.

“While Favehotel is very rigid in structure and design, Neo is more flexible – the room size is bigger, the design is more playful and elegant, and (rooms) come with amenities such as a coffee- and tea-making facility, an in-room safe, a vanity mirror and a hairdryer, which Favehotel does not have.”

On market segment differentiation, Vas said: “Neo is more geared towards business travellers to appeal to both the Indonesian and international markets, while Favehotel caters more to the Indonesian market, price-wise. Neo is (priced) between Rp150,000 (US$15.40) and Rp200,000, higher than Favehotel’s rates.”

Vas said two more Neos were opening in Bali and Jakarta this month, with 30 more in the pipeline. All Neos will be non-smoking properties. He expects half of Neo’s business to come from e-commerce.

Neo Hotel Cideng Jakarta is the second hotel owned by Robina Putra Perkasa that is managed by Archipelago International, after Favehotel Wahid Hasyim Jakarta.

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