Archipelago expands globally across more segments

Archipelago is scaling its global footprint, expanding into Latin America, South-east Asia and the Middle East with a strategy that spans ultra-luxury to high-volume pilgrimage accommodation.

The Indonesia-based international hotel group has entered the premium segment by launching its first luxury brand in partnership with Tonino Lamborghini.

Archipelago and KEC formalise their joint venture as part of Saudi Arabia expansion plans

Speaking at the CEO Table: Hospitality Unpacked in Jakarta, John Flood, CEO of Archipelago, said the group opted for a partnership rather than developing an in-house brand to secure a “strong lifestyle brand rather than creating one from scratch”.

The collaboration has led to the launch of Tonino Lamborghini Hotels by Huxley, with the first four ultra-luxury projects already signed in the Dominican Republic, Colombia and Miami.

Under the partnership, Archipelago will also manage Tonino Lamborghini Residences.

Building on this momentum, the group is eyeing further expansion of its luxury portfolio in Mexico, Indonesia and the Philippines, while also making a strategic entry into the Middle East.

At the end of 2025, Archipelago signed a joint venture agreement with Knowledge Economic City (KEC) to establish a Madinah-based hospitality management company, with equal shareholding. The partnership aims to set up a specialised hospitality management platform, develop a Saudi hotel brand and deliver its first project in Madinah as part of KEC’s wider expansion in the Kingdom’s hospitality sector.

The first project will be a 2,600-room property spanning eight hectares, targeted to open in early 2028. The concept is intended to be replicated in Mecca and Jeddah, allowing pilgrims to follow the same travel route across all three locations.

“These are two-star hotels designed for group travels, with large room capacities. KEC is developing up to 40,000 hotel rooms, along with shopping malls, sports facilities and transportation infrastructure,” he said.

“As an Indonesian company, our immediate strength lies in bringing the Indonesian pilgrim market. That is our primary focus at the moment. Indonesia sends millions of pilgrims every year. This represents a massive, stable demand,” he said.

Beyond the pilgrimage route, Flood said Archipelago would also enter the Red Sea region with more conventional leisure hotels.

Closer to home and across the Atlantic, Archipelago’s growth will continue with 26 properties scheduled to open this year. A significant portion of this expansion is concentrated in the Caribbean, where the group will launch 10 Aston and By Aston branded hotels in the Dominican Republic.

Flood highlighted the strategic value of the region, noting that “the American outbound market is massive”, with the Dominican Republic and Mexico remaining the two most popular destinations for US travellers.

Other openings this year include an Aston property in Cuba and two KOOP-branded properties in the Philippines. In Indonesia, 13 new and rebranded properties will be added to the group’s existing portfolio of 165 hotels across the country.

Archipelago operates more than 45,000 rooms across more than 300 hotels in South-east Asia, Latin America, the Caribbean, the Middle East and Oceania.

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