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.