Thailand, Indonesia current targets for noted expansion
San Francisco, CA -- (SBWIRE) -- 08/19/2013 -- The Mantra Group, an Australian hotel operator plans to open 20 hotels in Indonesia over the next 36 months and the same number of properties within Thailand over the next six years.
The company, which opened its first resort four-star Mantra in Bali is now in talks with adding over six hotels in the resorting province, according to Chief Executive Officer Bob East. The Queensland-based company, Gold Coast, will sign its own management agreements or take minority stock in the properties within the country.
“Indonesia’s got about 15 times more hotels being built than Australia,” East said on Aug. 7. “It’s got an emerging consumer class and a good growth story domestically and we have enough scope to grow.”
Mantra's move into Indonesia will see a 14% increase in room rates in the Jakarta area. Revenue per available room has surged by over 17% over the last year according to the Jones Lang LaSalle Inc numbers.
The number of visitors to Bali has climbed by 7.8% over the first three months of 2013, while supply in the area is expected to increase significantly in the next half-decade according to the same company.
Indonesia had “extraordinary economic growth over the past four to five years, and the hotel industry has predominantly been driven by the local market, except for Bali,” said Scott Hetherington, chief executive officer for Jones Lang LaSalle’s Asia Hotels and Hospitality Group. “Bali has seen very strong domestic and international demand, and there’s been significant development in the three- to five- star sector.”
Meanwhile, Thailand expansion is the newest expansion for the company. The numbers for foreign visitors to Bangkok grew by a full quarter within the first five months of the year. Chinese, Japanese, and Indian tourists were the predominant visitors.
In order to expand in the area, Mantra has placed $20 million to buy equity stakes in Bali and Jakarta, according t to East. “There are about 20 cities with over 2 million people,” East said. “In time, we’d expect that would be a fertile area to expand into.”
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