Best Western rejects budget proposition for Indonesia expansion

DESPITE strong interest from local investors in developing hotels within Indonesia's tertiary areas, Best Western International has dug in its heels and remains staunchly disinterested in entering the budget hotel segment.
Adrianus Pangarso, corporate general manager new property, area development Indonesia office, Best Western International, said Indonesia’s growing economy and improved transport links had boosted travel, especially for business, to tertiary destinations where the mining and agricultural industries are based. This has caught the eye of local investors, who are now keen to develop hotels in their own areas.
He said: “We are operating nine hotels today and expect this to go up to 12 by year-end, and 34 projects are in progress in major provincial capitals in Indonesia, as well as other cities like Berau (East Kalimantan) and Pangkalan Bun (Central Kalimantan), and we are in discussions with investors about projects in Luwuk (Central Sulawesi) and Berau (East Kalimantan).
“In fact, four investors had approached us in 2011 about hotel development in Malang when we were planning a hotel there.”
However, Adrianus emphasised that Best Western would stick to operating economy and mid-scale properties rather than hop on the budget brand bandwagon that is currently in vogue.
“The growth of budget brands and properties today is just a trend. Like fashion, we will see (the trend pass) soon…With Indonesian buying power increasing, travellers will not care about the Rp100,000 (US$10) difference in price for better facilities and services anymore,” he explained.
“Look at the airline industry – why did Lion Air come up with the (full-service) Batik Air? It’s because they saw the market potential now being enjoyed by Garuda Indonesia,” Adrianus added, pointing out that despite the fact that LCC flights were no longer cheap, such carriers still enjoyed full loads. 
The company recently opened the Best Western OJ Hotel Malang (TTG Asia e-Daily, July 29, 2013) this week, Best Western Hariston Jakarta the week before, and is due to open three more in the near future.

Sourced: ttgasia