Top News New round of financing to power Artotel’s expansion By Mimi Hudoyo / Posted on 18 October, 2021 9:48 Indonesia’s Artotel Group has completed a Series B funding for an undisclosed sum, led by Indies Capital Partners, a leading South-east Asian alternative asset manager, with participation from creative industry-focused Benson Capital. Artotel Group will utilise the proceeds to drive expansion through an aggressive merger and acquisition strategy in Indonesia’s hospitality sector, and invest in strengthening the group’s core business infrastructure, digitising operations, and enhancing sustainability throughout the organisation. Erastus: Artotel Group’s Series B investment will fund its expansion and core business development Erastus Radjimin, founder and CEO, Artotel Group, told TTG Asia: “With the rapid development of second- and third-tier cities like Sentul, Malang, Cepu and Banyuwangi, and the improved infrastructure across Indonesia, we see the opportunity to reach out to the (various) domestic market with many options that the Artotel brand alone cannot.” The group is in the process of rolling out 29 new properties across the country, plumping up its portfolio to over 50 by 2023. In tandem with the investment, Artotel Group has acquired the Indonesia franchise of Kyriad, a hospitality brand created by France-based Louvre Hotels Group. The deal includes 11 managed properties in the country, adding 1,300 rooms to Artotel’s portfolio. The group will continue to manage the properties under the established Kyriad brand and develop new two- and three-star hotels under the brand in second-tier cities throughout Indonesia. Erastus said: “Kyriad is the first non-standardised hotel chain at the three-star level. We see the opportunity to develop (the brand) in cities like Purwoketo and Jember where an Artotel brand is (not feasible) due to the project cost or the (local) price level.” The Kyriad acquisition brings Artotel Group’s total room count to around 3,000. Erasutus revealed that another acquisition would be announced next month. Pandu Sjahrir, managing partner at Indies Capital Partners, said: “Artotel Group has demonstrated resilience in this pandemic through effective management and streamlining business operations. Looking ahead, we will support Artotel’s long-term ambitions by strengthening the group’s corporate and technology infrastructure, as well as implementing strategic business plans geared to drive sustainable growth,” Avina Sugiarto, senior vice president at Indies Capital Partners, expects Indonesia’s tourism industry to continue to grow post-pandemic on the basis of a burgeoning domestic middle-class and strong International appeal. Meanwhile, Ben Soebiakto, co-founder at Benson Capital, revealed that the company would leverage its expertise in the creative industry to support Artotel’s unique art-inspired offerings. Prior to this, Artotel Group’s Series A investment had come from Intudo Ventures.