Carlson Rezidor Hotel Group has signed a new joint venture agreement that will lead to the development of 20 new hotels across Indonesia.
The deal, signed with Indonesia’s Panorama Group, will see Carlson launch multiple new Radisson and Park Inn by Radisson properties across the Indonesian archipelago over the next seven years. Destinations will include key markets such as Jakarta, Bali, Surabaya and Yogyakarta, as well as emerging cities such as Manado, Makassar, Palembang and Medan.
To facilitate this expansion, a Jakarta-based joint venture company will be created, named PT Carlson Panorama Hospitality. Carlson Rezidor will offer provide its hotel management expertise, worldwide sales and marketing support, as well as access to its distribution network, while the Panorama Group will work in areas of local business development, acquisition and project development.
“The joint venture combines Panorama’s local knowledge and presence in Indonesia with Carlson Rezidor’s global network, resources and expertise,” said Simon Barlow, Carlson’s President for Asia Pacific. “Indonesia is an attractive market with huge potential. Domestic leisure travel in particular has been gaining ground, with Indonesia’s rising middle class making more domestic trips and spending more on their travels. According to the McKinsey Global Institute, Indonesia is set to become the world’s seventh largest economy by 2030, with 135 million consumers representing a US$1.38 trillion market opportunity.”
The deal marks the latest phase in Panorama and Carslon’s relationship; the two companies initially came together in 1999 to establish Carlson Wagonlit Travel (CWT) in Indonesia.
“The joint venture will create great synergy for both parties, establishing hotels in key destinations in Indonesia and drawing more tourists from around the world to Indonesia as well as providing world class hotels and hospitality standards to the growing domestic market,” said Budi Tirtawisata, Group CEO of Panorama.
Carlson Rezidor current operates a portfolio of 164 hotels in the Asia Pacific region, but none in Indonesia.