Dyandra to spend Rp 350b on new hotels

February 17, 2014, 02.44 PM | Source: The Jakarta Post

ILUSTRASI. Nasabah melintas di dekat logo Bank Jago di jakarta, Selasa (18/1). /pho KONTAN/Carolus Agus Waluyo/18/01/2022.

JAKARTA. Publicly listed event organizer PT Dyandra Media International is looking to develop its hotel business and boost revenue by opening four new hotels this year.

Danny Budiharto, the company’s chief operating officer, said the company expected to expand the hotel sector segment of the firm’s portfolio by allocating up to Rp 350 billion (US$29.58 million) to build new hotels this year.

“Currently, the composition is 60 percent events and 40 percent hotels and convention centers. We would like to balance the portfolio to fifty-fifty,” he said at the grand opening of the Amaris Hotel by Dyandra in Pancoran, South Jakarta, on Friday.

“We aim to open at least five new hotels every year,” he continued.

In 2014, Danny said, Dyandra would open a five-star hotel in Denpasar, Bali, and two Santika Hotels — in Kelapa Gading, North Jakarta and Cikarang, West Java.

Hence, Dyandra expects to own a total of 11 hotels by the end of this year.

Danny said that, next year, the company would open one Amaris Hotel in Cilandak, South Jakarta and four Santika Hotels — in Cilandak; Pekalongan, Central Java; Bumi Serpong Damai, South Tangerang, Banten; and Karawang, West Java.

The company’s finance director Budi Yanto Lusli said the company had allocated up to Rp 400 million for each room at the Amaris hotels and Rp 500 million per room at the Santika hotels.

He said that the firm was also eyeing several locations for building new hotels, including Cilacap in Central Java, Cilegon in Banten and Makassar in South Sulawesi.

He expected that the company would meet a 20 percent growth rate last year compared to the year before, while also looking to book a 30 percent increase in revenue this year with the launch of the new hotels.

Dyandra, a subsidiary of the country’s printing and publishing giant Kompas Gramedia Group, was the first integrated meetings, incentives, conventions and exhibitions (MICE) organizer to be listed on the bourse.

The company, in partnership with property developers PT Sinar Mas Land, is also constructing the Indonesia International Expo (IIE) convention center — set to be one of the largest such facilities nationwide, with a capacity of 150,000 people — in Bumi Serpong Damai.

The construction of the building is estimated to be completed by mid-2014.

Danny said that the occupancy rate at the company’s hotels had so far reached more than 80 percent, particularly for those located in Cengkareng in West Jakarta, Tangerang in Banten and Panglima Polim in South Jakarta.

Danny said that the company remained optimistic about the occupancy rate at its hotels despite tight competition in the budget hotel business over the past few years with the presence of new hotel chains such as Fave Hotel by the Aston Group.

“The budget hotel industry has reached a saturation point, particularly in Bali and Surabaya [East Java]. A lot of big groups are joining the two-star and three-star hotel segment because of its fast return,” Danny said.

“However, we are very optimistic with our brand because [...] the public perceives our brand as very ‘down to earth’.” (Nadya Natahadibrata)