Indonesia’s hospitality and lifestyle company Artotel Group has formed a strategic partnership with Singapore’s Far East Hospitality (FEH) as it seeks to plant its flag in Singapore and several other countries.
Under the partnership, the two parties will collaborate across operations, cross-branding exposure, and training to strengthen their respective businesses across markets.
As affiliated brands, Artotel Group will work with FEH to expand its presence in South-east Asia at a regional level, introducing Artotel’s hospitality brands to FEH’s network. For FEH, the partnership will allow the group to enhance its presence in Indonesia and gain meaningful market share. In Indonesia, Artotel will represent FEH brands through the group’s distribution channels and ecosystem.
In terms of business growth, both sides will prioritise one another in partnerships and new business opportunities within select jurisdictions of interest. Artotel Group and FEH will also conduct training exchanges to share industry best practices and increase internal knowledge and expertise across markets.
Eduard Pangkerego, COO, Artotel Group, said: “We are facing the challenges of competing with the international brands, which have strong networks and infrastructure. (With the pandemic,) we cannot just sit still and lament the situation. This (partnership will help us get) the right momentum to prove that we are strong.”
Arthur Kiong, CEO of FEH, said: “Singapore and Indonesia are key inbound markets for our respective tourism sectors. As such, we see strong synergies for both countries. Artotel Group also has a network in Indonesia where we do not have a presence in.
“From a brand architecture perspective, it fits into a niche segment which we are currently not represented. Amid discussions to explore a ‘travel bubble’ between both countries, we look forward to leveraging our combined portfolio to appeal to both domestic and regional markets.”
Eduard said the alliance will allow Artotel Group to offer clients the luxury brands, which the group did not have.
Artotel currently has 29 properties in its pipeline across Indonesia, which will bring the total number of properties under the Artotel brand to 50.
FEH operates a combined portfolio of more than 16,500 rooms under its management across 100 hotels and serviced residences in eight countries. The group has also continued to forge ahead with local and regional expansion plans, with two properties opening in 1Q2021 and more in the pipeline this year.