H

otel operator Tauzia Hotel Management, will take advantage of the growth in local economies, and expand its network by opening an additional 30 hotels across Indonesia in the next three years.

The new hotels will be built in second-tier cities, such as Balikpapan in East Kalimantan; Kediri, Malang in East Java; Kendari in Southeast Sulawesi; and Palembang in South Sumatra, Tauzia president director Marc Steinmeyer said in Jakarta on Thursday.

The new hotels, which are to be operated under the Harris brand, will all be four-star accommodation.

He said that second-tier cities have become more promising for hotel business due to the growing local economy.

“People from around the region are paying more attention to Indonesia now,” he added.

Next year alone, Tauzia will open four Harris hotels — one in Malang, East Java, and three in Bali — this will be followed by 16 hotels in 2014 and 10 more in 2015.

The new hotels will have 5,611 rooms and the development will cost about US$336.66 million, as each room requires around $60,000, excluding land cost.

By 2015, Tauzia will operate a total of 41 Harris hotels with 7,607 rooms, each room ranges from 22 to 26 square meters each.

The new Harris hotels will offer different layouts and atmospheres as the company emphasizes on the promotion of healthy lifestyles, Steinmeyer said.

“Our hotel brands are popular for their simple, unique and friendly concept. Particularly for the Harris [brand], we want to work more on the healthy lifestyle aspect. It will set us apart from our competitors,” he said.

Harris’ occupancy rate currently stands at around 75 percent to 80 percent. About 80 percent of its guests are Indonesian, while the other 20 percent are foreigners, many of which are from Singapore and Malaysia.

Besides targeting second-tier cities in Java, Kalimantan, Sulawesi and Sumatra, Tauzia plans to extend its Harris network to eastern Indonesia and overseas as well, according to Steinmeyer.

In the next few years, the company hopes to open Harris hotels in Kupang, East Nusa Tenggara, and Malaysia.

“We are in the process of opening our flagship hotel in Kuala Lumpur. The hotel will have 350 rooms and hopefully it will open within two years,” he said, adding that Tauzia expected to operate up to 60 Harris hotels by 2016.

Besides the four-star Harris hotels, Tauzia’s business portfolio includes the three-star Yello and two-star POP! hotels as well. In 2014, Tauzia will expand its portfolio by launching three hotels in Bali under the Worldhotel and Préférence brands.

While Harris, POP! and Yello target customers in the mid-scale, economy and budget markets, Worldhotel and Préférence will cater to high-end guests.

“Worldhotel is a classic five-star hotel brand, while Préférence is a boutique hotel. Préférence will put a lot emphasis on Indonesian culture and heritage,” Steinmeyer said.

The Préférence hotel will be located in Seminyak and the Worldhotel will be situated in Bukit Balangan and Petitenget.