Jakarta. Hotel and restaurant operator Marga Abhinaya Abadi plans to open six restaurants and three hotels as the part of its multi-year business expansion plan.
“We plan to open six new restaurants this year and operate two hotels in 2018,” Marga Abhinaya Abadi president director Adrian Bramantyo Musyanif told the Jakarta Globe on Thursday (22/06).
The company will build a hotel in Yogyakarta and another in Medan, North Sumatra, while it will open six new restaurants in the Jakarta area at a total cost of around Rp 30 billion ($2.25 million).
Marga Abhinaya Abadi, founded under the name Lintas Insana Wisesa in 2009, builds and operates hotels and restaurants in Indonesia. The hotels range from two-star to five-star establishments.
Marga Abhinaya Abadi operates three hotels – Ammi Cepu and Allium Cepu in Central Java and Allium Tangerang in Banten – and one restaurant – Rantang Ibu in Dharmawangsa, South Jakarta – through its subsidiary, Samara Hotels and Resorts.
The company raised Rp 53.09 billion in an initial public offering on Thursday, with about 49 percent of the proceeds allocated to its subsidiaries for business expansion, 32 percent for debt repayment, and the remainder earmarked for working capital.
Adrian, the 30-year-old president director, said the bulk of the IPO proceeds will be used to complete the Arum Cepu Hotel, in Blora district, Central Java, while some will also be allocated towards the opening of new restaurants.
“The Arum Cepu Hotel is near completion and is now 70 percent ready,” Adrian said. He added that the hotel will start operation by the end of this year.
Adrian said the company sees the Cepu area – the country’s largest oil field – as a good location for its hotel business because it targets workers in the industry.
State-owned Pertamina and United States-based Exxon Mobil are among the companies operating in the area.
Shares of Marga Abhinaya Abadi, traded under the MABA ticker symbol, closed 69.64 percent higher at Rp 190 apiece on Thursday, compared to a 0.19 percent increase on the main stock index.