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Indonesia's airport authority develops hotels
Mimi Hudoyo, Jakarta, March 21, 2013

INDONESIA'S state-owned airport authority, Angkasa Pura Airports, is dipping its toes into the hospitality industry by developing airport hotels across the country.


The company plans to own 13 hotels in 13 east Indonesian airports with a total number of 2,450 rooms by 2017.


Speaking on the sidelines of Hospitality Investment World Indonesia in Jakarta yesterday, Angkasa Pura Hotels president director, Widodo Marmer, told TTG Asia e-Daily: “We currently have two hotels under development in Surabaya and Makassar opening next month and July respectively, and will start building a third in Bali.”


Angkasa Pura Airports will own its hotels but pass on management responsibilities to its subsidiary Angkasa Pura Hotels or other hotel companies. The Surabaya, Makassar and Bali hotels will be managed by Accor under the Ibis budget and Novotel brands.


On the decision to enter the hotel fray, Marmer explained: “It all began with the government’s new regulation, which opened up airport management to the private sector. On the other hand, the airport (authority) can also manage other (businesses).”


Angkasa Pura Hotels was thus formed as a subsidiary.


With more than 200 existing airports and new ones coming up around Indonesia, Marmer believes demand for airport hotels would grow as business travel increases.


The new hotel company is aiming to go public by 2017, and is targeting expansion into the western part of Indonesia and eventually overseas airports.


Earlier in the year, Malaysia Airports Holdings also made a similar move by launching its new airport hotel brand, Sama-Sama, marking its entry into the airport accommodation sector (TTG Asia e-Daily, January 11, 2013).

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