Face-to-Face: Marc Steinmeyer, Tauzia Hotel Mgt.
Face-to-Face: Marc Steinmeyer, President Director, Tauzia Hotel Management
1) Can you please outline the different brands operated by Tauzia Hotel Management?
Tauzia Hotel Management launched in 2003, first creating the Harris Hotels brand – an innovative concept reflecting the image of “the new era in Indonesia”. Fresh and young, Harris’s motto is ‘Simple - Unique - Friendly’. Following Harris, Tauzia has launched two other concepts; Preference offers ‘charm hotels’ for the upper-end of the market. Representing properties across Southeast Asia, Preference hotels share a consistency of refinement while retaining their individual charm. The most recent brand is Pop! Hotels, which are designed for smart eco-friendly travellers. Pop! Hotels bring the innovation not only in terms of design, but also in their construction which embraces solar power to limit energy expenditure, as well as minimising air-conditioned space outside guestrooms. Furthermore, a Pop! Hotel can be built in just six to eight months.
2) Since the launch of Pop! Hotels, how is the brand progressing and what developments are planned for 2011?
Pop! Hotels brand was launched in June 2010 with the first hotel opening in September 2010 in Bali. At the moment, there are already eight Pop! Hotels under construction including three projects with direct investment from Tauzia. In 2011 we will open new hotels in Manado, Yogyakarta and Jakarta airport, while 2012 will see further openings will be in Surabaya, Bali (2), Jakarta and Solo.
3) How strong is the demand for budget hotels in Indonesia at present, and what does Pop! Harris offer to give it the competitive advantage?
The demand of budget hotels is quite large in Indonesia, as it is across Asia. For the last 10 years customers’ expectations have been evolving, and they now tend to be more demanding in terms of hygiene, aesthetics, comfort and security, as well as being more brand-conscious. They are what we call ‘smart customers’, who could afford an US$80 hotel, but just as easily choose a US$30 option. POP! Hotels targets these customers. A typical POP! Hotels room could hold a family with two children, or a group of friends who travel together. They also offer free Wi-Fi, 60 TV channels, and a shower pod that improves space efficiency in each room. The final advantage point for Pop! Hotels is its environmental awareness, which is increasingly popular with smart travellers.
4) Which key locations are you targeting for the Harris brand, and are we likely to see the brand developing in the international market?
After Java and Bali the next locations for Harris will be Sulawesi and Sumatra. This Franco-Indonesian brand will also be exported from Indonesia throughout the ASEAN region, first to Malaysia then Thailand, Cambodia and Singapore.
5) How do you see the Indonesian hotel sector developing over the next 12-24 months, and what key trends can we expect to see emerging?
The hotel sector in Indonesia demonstrates real potential. There are no major concerns in terms of volume since the market is already there, but rates are relatively low compared with other Asian countries. There is still plenty of room to explore in the budget, economy and mid-scale sectors, although there is a potential problem of over-supply if access of the loans is too easy with little long-term commitment. Some developers may perhaps focus on how to get a faster return of investment rather than focusing on the quality of construction, facilities and services. Today, Indonesia enjoys a reasonably balance of two- to five-star hotels as for the past decade both the developers and bankers have been quite cautious. I personally think that it should progress according to the growth of the country and no faster. Therefore I hope this new influx of budget and economy hotels will not affect this balance.