Indonesia’s Dafam eyes overseas expansion of hotel arm amid public listing plans

The Semarang headquartered company currently only has hotels in Indonesia

Dafam Hotel Management is setting sights on expansion outside Indonesia as its parent company Dafam Property readies to go public later this week.

Andhy Irawan, managing director of Dafam Hotel Management, said: “Within seven years of operation, we have 23 hotels in 16 cities in Indonesia with a total of 2,301 rooms and some in the pipeline.”

The Semarang headquartered company currently only has hotels in Indonesia

As the company continues to expand in Indonesia, it also harbours international ambitions, targeting an overseas management portfolio of 100 hotels by 2025 in total, in Indonesia and overseas.

Headquartered in Semarang, Central Java, Dafam Hotel Management has won a contract for seven properties in Mecca and Jeddah, Saudi Arabia, in addition to receiving an offer to either invest in or manage a hotel in New Delhi. The company is also considering Singapore and Malaysia for expansion.

Andhy remarked that Dafam’s key to winning the hotel management in Saudi Arabia was their experience in managing Syariah hotels in Banjarbaru, South Kalimantan and Yogyakarta.

“Olayan (Group Hotels) initially signed a contract with us for its 500-room Mecca property and as we are in the process of taking the management, they entrusted us with six others with a total of around 4,000 rooms in Mecca and Jeddah,” he shared.

“We see a lot of potential (demand) from the Indonesian market to some of these (locations), and this is a lucrative customer target for us,” he said.

In the meantime, Dafam Property will be listed at the Indonesia Stock Exchange on April 27, releasing 25 per cent of its share to the public.

The board of directors of Dafam Property – whose business covers commercial and residential property, hotel development and management, as well as restaurant, catering and entertainment businesses – are confident the time is right for the company to go public.

Billy Dahlan, president director of Dafam Property, explained: “Indonesia’s tourism potential is high, the hotel industry has been growing significantly in the last few years and most importantly, the government’s infrastructure development programmes across the country has impacted directly on hotel business (in those areas).”

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