The government of Indonesia announced the launch of a new hotel brand that is aimed to challenge the obvious domination of foreign hotel companies on the market. Named Hotel Indonesia Group, the network of hotels will consolidate all state-owned hotels in Indonesia and then will work over expansion across the country.
Many state-owned enterprises have running hotel business. For example, energy company Pertamina opened several hotels to provide shelter for their employees on the road. Slowly these hotels developed into a money-making business.
The Hotel Indonesia Group will first combine three state-owned companies with the total of 26 hotels in their portfolios. These are Hotel Indonesia Natour (state-owned hotelier with 12 hotels), Patra Jasa (the hospitality unit of Pertamina with 7 hotels), and Aero Wisata (hospitality and catering division of Garuda Indonesia with 7 hotels). Ten more hotels are to join the group in the nearest future. These are nine state-owned hotels from pawnbroker Pegadaian and one hotel from temple operator Taman Wisata Candi. It is reported that Hotel Indonesia Natour will be appointed the holding company for all the 36 properties.
Once the consolidation in complete, the government will try to make these state-owned hotels meet international hospitality standards. For that purpose the government has already signed memorandum with 16 state-owned companies that will provide food, beverages, utilities, electricity and other needs for the hotels.
The Hotel Indonesia Group already has the official website where guests can book rooms in the hotels that are ranged from two to five stars. In future, the group is expected to expand its portfolio to at least 97 hotels in Indonesia.