Artotel Group, Indonesian boutique accommodation, and leisure firm, has raised an undisclosed sum in a Series B funding round headed by Indies Capital Partners and Benson Capital, which is focused on the creative industry.
Artotel plans to use the additional funds to pursue a merger and acquisition strategy in order to expand across Indonesia.
Another portion of the funds will be utilised to improve the group’s fundamental infrastructure, digitise its operations, and improve overall sustainability.
“With Indonesia’s hospitality sector at a critical juncture, Artotel is investing heavily into future growth with a focus on quality guest experience and an enhanced geographic footprint,” said founder and CEO Erastus Radjimin.
Artotel plans to open 29 additional hotels in Indonesia’s first and second-tier cities, as well as emerging tourism destinations, by 2023, bringing the company’s total number of properties to over 50.
Under the Kyriad brand, which it recently purchased from France-based Louvre Hotels Group, the firm will continue to operate properties and develop new two- and three-star hotels.
Erastus and Christine Radjimin co-founded Artotel in 2013, which features four interconnected pillars: hotel (stay), food and beverage (dine), event management (play), and curated retail (shop).
The company offers a variety of lodging options, including budget hotels, boutique hotels, and premium stays, as well as mass-market and luxury hotels.
Its hotel brands include Bobotel, Roomsinc, and Artotel.
Artotel now has 3,000 rooms in its portfolio, including 1,300 rooms acquired as a result of its acquisition of Kyriad’s Indonesia business.
In the food and beverage industry, the firm also provides autonomous administration of restaurants, bars, and beach clubs. It uses a technology-driven strategy to improve hotel operations infrastructure and handle bookings, management, and guest interactions more effectively. Brand activation events, online cultural events, and food and beverage delivery are all covered under one umbrella.
“Although impacted in the last two years, we are optimistic that Indonesia’s tourism industry will continue to grow post-pandemic based on a burgeoning domestic middle-class and strong international appeal,” said Avina Sugiarto, senior VP at Indies Capital.
Artotel claims that via business planning, it has consolidated and reorganised the firm, boosting business profits and customer satisfaction.
Tourism is a key development engine for the hotel sector in Indonesia, according to the “Hospitality Real Estate Sector in Indonesia” 2020 study. The hotel sector is reported to be well-developed, with accommodations ranging from five-star hotels to modest guesthouses. In 2018, five-star hotels accounted for 39.29% of all hotels in the United States.
In addition, the region has seen a slew of emerging travel-tech firms that are expected to draw good deals in 2020-2021, indicating the hospitality sector’s recovery following the pandemic. Vouch and PouchNATION in Singapore, Bobobox in Indonesia, and Mosaic Solutions in the Philippines are among them. In June, Velocity Ventures closed a $20 million fund dedicated to Southeast Asian hospitality and leisure businesses.
