MG Group’s unit get undisclosed equity fund from Northstar

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Photo by MG Group

JAKARTA (TheInsiderStories) – Indonesia MG Bedbank, part of MG Group has received undisclosed equity fund from Northstar Group by absorved the new shares issued by the company. The terms have not been disclosed but it said, Northstar will start as a minority shareholder at the first stage.

According to the information, MG Group may use the additional funding to accelerate growth through acquisitions. In the past year, the business has approximately doubled the number of hotels it works with in the region to about 5,000 hotels. 

The Northstar Group has invested over US$2.8 billion with its co-investors in the Southeast Asian region, but this is its first significant investment in travel.

According to the company statement, in 2015, Indonesia’s MG Group has split its online hotel wholesale and inbound travel division in a restructuring and rebranding exercise. MG Holiday’s hotel business is now MG Bedbank and its travel division has taken on the name MG Destination.

MG Group COO Raymond, who like a good number of Indonesians go by one name only, explained the name change. “The word ‘holiday’ in the travel trade refers to a set of components, including ticketing, hotel voucher and tour packages. We wanted to focus on growing each division; therefore, we separated the hotel wholesale and inbound tour division.”

Raymond said MG Bedbank and its sub-agents offers more competitive commissions for hotels – three to five per cent against OTAs, where rates can go up to 25 per cent. Furthermore, with so many new hotels opening all over Indonesia, often with more than one property under the same brand, travel consultants are able to advise which hotel is most convenient for the traveller.

At the moment, MG Bedbank has more than 3,000 sub-agents in Indonesia, more than 2,500 hotels in its Indonesian inventory and 200,000 hotels overs

It is with the unparalleled level of support we get from both suppliers and clients, combined with our company expertise, technology and focus, that we are able to consistently deliver leading results to all our partners, MG is Part of YouMG Group is recognized as the most trusted and preferred hotel wholesaler to the travel industry in Indonesia, working closely with over 2,000 hotels across Indonesia generating over a million room nights per year.

Comprised of four major distribution channels, namely MG Bedbank, Abacus RoomDeal, Rajakamar.com and MG Destinations, MG Group is positioned solidly in B2B market segments, providing hotel availability and the best deals to our customers at over 250,000 hotels worldwide.

 

 

 

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Source: The Insiderstories
MG Group’s unit get undisclosed equity fund from Northstar

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