Indonesian Boutique Hotelier ARTOTEL Group Raises Series B Financing To Fuel Expansion

With its acquisition of Kyriad’s Indonesia operations, ARTOTEL Group is pursuing M&A opportunities within the hospitality sector, acquiring high-quality properties throughout the archipelago

JAKARTA, INDONESIA, October 15, 2021—ARTOTEL Group, Indonesia’s leading boutique hospitality and lifestyle group, today announced the completion of an undisclosed Series B round of financing. The round was led by Indies Capital Partners, a leading Southeast Asian alternative asset manager, with participation from creative industry-focused Benson Capital. ARTOTEL Group will utilize the proceeds of this financing 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, digitizing operations, and enhancing sustainability throughout the organization.

With this round of financing, ARTOTEL Group will actively seek out strategic partnerships with hotel operators throughout Indonesia and aggressively pursue mergers & acquisitions with high-quality Indonesian hospitality companies. ARTOTEL Group is targeting the development of new properties in Indonesia’s first-tier and second-tier cities, as well as new tourism destinations that are projected to open in the coming years. Currently, ARTOTEL Group is in the process of rolling out 29 new properties in its pipeline across Indonesia, which will bring the total number of properties to over 50 by 2023. The company has adopted a forward-thinking position, investing heavily in digitization across the entire organization through technology-enabled hotel operation to improve customer service and guest experience, and demonstrating a long-term commitment to health and business sustainability, raising the bar for Indonesia’s hospitality sector.

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 throughout the archipelago, adding an additional 1,300 rooms to ARTOTEL’s hospitality portfolio. The group will continue to manage the properties under the established Kyriad brand and develop new Kyriad-branded two- and three-star hotels in second-tier cities throughout Indonesia. The acquisition brings ARTOTEL Group’s total room count to around 3,000 rooms.

Positioning itself for the future, ARTOTEL Group has adopted an offensive strategy geared to digitize its business to capture future growth while enhancing the hotel chain’s physical footprint. The company is strengthening its hotel operations infrastructure to better manage booking, management, and guest relations with a technology-driven approach, including brand activation events, online cultural events, and food & beverage delivery. ARTOTEL has consolidated and reshaped the organization through efficient and effective business planning, which has resulted in improved business margins and greater customer satisfaction.

“With Indonesia’s hospitality sector at a critical juncture, ARTOTEL Group is investing heavily into future growth with a focus on quality guest experience and an enhanced geographic footprint. By doubling down on business diversification, operational digitization, employee training, and property expansion, ARTOTEL is poised to become Indonesia’s leading diversified hospitality group,” said Erastus Radjimin, Founder and CEO, ARTOTEL Group. “With the support of our investors, ARTOTEL Group will be able to gain significant momentum, tapping into their expertise in business expansion, digital upgrading, and commitment to sustainability.”

As a diversified hospitality and lifestyle group, ARTOTEL Group covers a wide range of offerings, including Integrated Hospitality (stay), Food & Beverage (dine), Branding, Creative Content & Event Management (play), and Artsy Merchandising (shop). Since launching in 2013, ARTOTEL has developed into one of Indonesia’s leading boutique hotel operators, offering unique hospitality experiences for business and leisure guests alike. In response to the pandemic-induced downturn in Indonesia’s domestic hospitality sector, ARTOTEL Group has weathered the crisis by leveraging its wide range of business offerings, including food & beverage business, content sponsorship and online event management, professional hospitality training services, and streamlined hotel operations—maintaining occupancy rates exceeding industry benchmarks throughout the pandemic with enhanced safety measures in place.

“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,” said Pandu Sjahrir, Managing Partner at Indies Capital Partners. “By investing in growth now, we believe that ARTOTEL Group will be positioned to gain significant momentum in post-pandemic Indonesia and look forward to their continued success as a highly differentiated hospitality brand.”

“Although impacted in the last two years, we are optimistic that Indonesia’s tourism industry will continue to grow post-pandemic on the basis of a burgeoning domestic middle class and strong International appeal. Addressing the needs of international and domestic clientele, ARTOTEL Group has developed a unique model for Indonesia’s hotel industry, successfully bringing together aspects of local Indonesian culture with global hospitality best practices. We look forward to working with the ARTOTEL team as a trusted partner to drive expansion and digitize operations to ensure the company’s long-term sustainable growth as a leader in Indonesia’s hospitality sector,” said Avina Sugiarto, Senior Vice President at Indies Capital Partners.

“Through its combination of hospitality, creativity, relaxation, and lifestyle, ARTOTEL Group is creating a dynamic brand geared towards high-quality experiences for both International and domestic guests. With our expertise in the creative industry, we will work with ARTOTEL to collaborate through our media and lifestyle resources, providing significant support to the group’s unique art-inspired offerings,” said Ben Soebiakto, Co-founder at Benson Capital.

Prior to this round of financing, ARTOTEL Group raised a Series A investment from Intudo Ventures.