Select Hotels Group has marked out Indonesia as its first market expansion beyond its home base Japan, through a management takeover of 192-room Enso Hotel by Celecton in the industrial area of Cikarang, West Java.
The Japanese hotel company, which was founded in 2005, has 50 hotels in various cities across Japan, ranging from business to luxury categories.
“We are excited to expand to Indonesia, which is a rapidly growing tourism market with a rich culture and history. We believe that our Japanese hospitality and expertise can make a positive contribution to the Indonesian tourism industry,” shared Hiroshi Nakamura, president and CEO, Select Hotels Group.
Nakamura added that the group has currently signed four Memoranda of Understanding for hotel management in Jakarta and Bali, with several others still under discussion.
Select Hotels Group is working with its hotel development advisor, Andhy Irawan, to lead its expansion in the country – Andhy, previously CEO of Dafam Hotels & Resorts, has had success developing hotels in Indonesia.
Expecting good business from the domestic market, Andhy told TTG Asia that the company aims to flag 50 hotels within three years, not only to manage, but as investments.
“We are looking at having properties not only in major destinations but also second-tier cities in the country, mostly in (mid-scale) categories,” he noted.
Nakamura said: “We believe that our presence in Indonesia will help to attract more Japanese tourists to the country, and we are also excited to welcome Indonesian guests to our hotels in Japan.”