E

merging hotel chain operator Tauzia Hotel Management plans to operate 85 hotels ranging from two- to four-star accommodation in the next two years in order to tap into growing demand in the business and leisure market.   

Corporate spokesperson Yani Sinulingga said the hotels would be opened not only in Indonesia’s major cities but also in second-tier cities like Madiun, Malang, and Kediri in East Java; Kendari, Southeast Sulawesi and Luwuk, Central Sulawesi.   

“The size of the country’s population of 240 million and robust economic growth has led to more people traveling, hence our business expansion,” Yani said recently.

“The development of low-cost carriers that fly to smaller cities in the country also creates [positive] trends for budget hotels.”  

As of today, the company operates 16 hotels ranging from two-star accommodation under the brand POP! Hotels to four-star hotels under the Harris Hotels brand and the diamond four-star residence Solo Paragon.

The hotels are located in major cities across Java, Sumatra, and Bali such as Jakarta, Bogor, Bandung, Yogyakarta, Denpasar and Batam with a 70 to 80 percent occupancy rate in each hotel, the operator said.

“We also plan to launch our three-star brand in major cities at the end of this year,” Yani said.

She said the additional portfolio would bring the number of hotels they operate to more than 100 in the next two years.

Tauzia, Yani said, had found an edge to stay ahead of the tight competition within Indonesia’s hospitality business. POP! Hotels, for example, uses prefabricated construction materials and pre-cast shower pods to give the hotels a younger look. The hotel also claims to apply eco-friendly concepts by using solar panels and less paper and plastics.

Indonesian Association of Hotels and Restaurants (PHRI) deputy secretary-general Carla Parengkuan said that hotel chains were currently facing cutthroat
competition in the hospitality business, prompting them to provide more amenities, even in two-star hotels.

“Two-star hotels now provide a free Internet service, flat-screen televisions and web check-in facilities to create enjoyable stays for their customers,” she said.

Some two-star hotels are even equipped with small meeting rooms to capture the Meeting, Incentives, Conventions and Exhibitions (MICE) market.

One hotel chain that will provide such facilities is the Panorama Group with their BnB brand. The first BnB hotel, which the company called a “diamond class two-star hotel”, is going to open in Kelapa Gading, North Jakarta, near Mall Kelapa Gading and Mall of Indonesia.