Indonesia’s Dafam eyes overseas expansion of hotel arm amid public listing plans

25 Apr 2018 2148 | World Travel News

Dafam Hotel Management is setting sights on expansion outside Indonesia as its parent company Dafam Property readies to go public later this week.

Andhy Irawan, managing director of Dafam Hotel Management, said: “Within seven years of operation, we have 23 hotels in 16 cities in Indonesia with a total of 2,301 rooms and some in the pipeline.”

The Semarang headquartered company currently only has hotels in Indonesia

As the company continues to expand in Indonesia, it also harbours international ambitions, targeting an overseas management portfolio of 100 hotels for by 2025.

Headquartered in Semarang, Central Java, Dafam Hotel Management has won a contract for seven properties in Mecca and Jeddah, Saudi Arabia, in addition to receiving an offer to either invest in or manage a hotel in New Delhi. The company is also considering Singapore and Malaysia for expansion.

Andhy remarked that Dafam’s key to winning the hotel management in Saudi Arabia was their experience in managing Syariah hotels in Banjarbaru, South Kalimantan and Yogyakarta.

“Olayan (Group Hotels) initially signed a contract with us for its 500-room Mecca property and as we are in the process of taking the management, they entrusted us with six others with a total of around 4,000 rooms in Mecca and Jeddah,” he shared.

“We see a lot of potential (demand) from the Indonesian market to some of these (locations), and this is a lucrative customer target for us,” he said.