Accor sees hotel, apartment demand surging

Accor sees hotel, apartment demand surging

By Sylvia Gratia M. Nirang

JAKARTA (JP): French-based international hotel chain Accor
Asia Pacific expects the demand for hotel and serviced apartment
accommodation in Indonesia to pick up again next year, after a
severe setback in the last two years.

General Manager of Accor's newly-opened Mercure Puri Imperium
apartment hotel Francois Dupuis said signs of economic recovery
in a number of business sectors would certainly have a positive
impact on the hotel and apartment industry.

But Dupuis believed that the demand for apartments would be
higher than that of hotels because expatriates, in addition to a
"particular" group of tourists, now preferred to stay in
apartments.

"With the improving economy, multinational companies will
expand their operations here. A lot of expatriate employees and
local executives are seeking residences not far from their
offices, where they can enjoy a convenient lifestyle," he told
The Jakarta Post.

"Staying in an apartment hotel with two or three bedrooms will
be more economical for international tourist who bring their
families here rather than booking two or three rooms in a hotel,"
he said.

An escalating crime rate in Jakarta has also created an
opportunity for apartment business, since people look for a safe
and secure place to live.

"People are seeking a place which can guarantee the security
of their families and their belongings. Living in an apartment,
which offers 24-hour security, is more secure than living in a
house," he said.

Last month, Accor opened a new serviced apartment hotel in
Jakarta, its 27th property in Indonesia, to tap into the growing
demand of serviced apartment.

Mercure Puri Imperium, the new serviced apartment hotel,
offers apartments complete with full four-star hotel services and
facilities.

The hotel is located in the city's premier business district
of Kuningan, East Jakarta.

It currently operates 69 furnished two- and three-bedroom
apartments complete with fully equipped kitchens and bathrooms in
its 32-story Tower 2.

Dupuis said that 90 percent of the 69 apartments had been
rented, most of them by expatriate families.

"It is really a good start because we can get a 90 percent
occupancy rate during our first month in operation," he said.

He added that the hotel would operate 96 apartments by March
or April next year.

Tower 1, also with 32 floors, will be finished by the middle
or the end of next year. There will be a total of 180 apartments
in the two towers.

Facilities include a health club, a free-form landscaped
swimming pool, recreational and sport facilities, including
tennis courts, fitness center, sauna, Jacuzzi and spa, children
playground and car parking. Unlike other serviced apartments,
Mercure offers four-star hotel facilities, including breakfast
and housekeeping.

Dupuis said that after completion of the second tower, the
hotel would offer not only two- and three-bedroom apartments, but
also suites and a penthouse.

"We target an at least 60 percent occupancy rate in the
beginning of next year," he said.

According to the hotel chain's Product and Marketing Services
Manager for Indonesia and Malaysia Fabrice Burtin, Accor is
aggressively seeking opportunities to expand its operations in
Indonesia at a time when many other tourist ventures are wilting
in the heat of the economic meltdown and simmering political
tension.

"We are confident that tourist destinations and business areas
will see increases in international visitors as the country's
economy and political condition continues to stabilize," he said.

He said that Accor planned to manage more properties in
Indonesia next year.

"We are glad that we could operate this new hotel on schedule.
It has proven that we are confident in the country's potential
and continue our expansion here while everybody are still
sleeping," he said.

He said that the hotel is Accor's 12th hotel in Jakarta and
its fifth apartment hotel in Indonesia.

Accor, partly owned by Paris-based hotel management giant
Accor SA, is currently the leading international hotel chain in
Indonesia, running 30 hotels and apartments, with more than 4,600
rooms, under several names, including Sofitel, Novotel, Mercure
and Ibis.