Artotel Group continues its expansion in Indonesia with its latest acquisition of Milestone Pacific Hotel Group (MPHG).
MPHG manages 45 hotels across various Indonesian provinces and regions, targeting middle and economy-class markets with its six brands – Maxone, Nite & Day, Zia, Ruma Ruma, Marc, and One of a Kind.
Eduard Pangkerego, chief operating officer of Artotel Group, told TTG Asia that his company was drawn to MPHG’s “good brand values” and “good prospects”. With Artotel Group’s acquisition, MPGH will now have the financial support to “move forward”.
Samudra Hendra, chief mission officer of MPHG, hopes that Artotel Group will further grow the hotel brands that he had built for over a decade.
He noted that MPHG has grown fast as a local company, having started in 2011 and now boasting 45 properties. However, the “tough competition in the hospitality industry today” meant having “a strong and everlasting local brand to compete with the currently dominating international brands”.
“In order for (our brands) to grow bigger and stronger, we cannot work alone – we need to join forces,” he explained.
By controlling the majority stake in MPHG, Artotel Group now manages over 100 properties across different brands, catering to a wide range of accommodation needs in Indonesia’s domestic markets.
Despite Covid-19 challenges, Artotel Group has rapidly expanded its business through various aggressive expansions, such as acquiring the Indonesia franchise of Kyriad, and leading Indonesian local brands such as Dafam and Maxone.
The company’s success shows no signs of slowing down, with 50 new hotel projects set to be managed by Artotel Group from 1Q2023 to 2025.
Erastus Radjimin, founder and CEO of Artotel Group, said: “The success we have achieved by managing more than 100 hotels… gives us a greater responsibility to provide the best service to our stakeholders.”
The company has prepared a sustainable business strategy to increase hotel revenues and stakeholder welfare, prioritising technology-based infrastructure to make hotel operations more efficient and effective.