How Radisson’s Foray Into Indonesia Was Undone by Betrayal
Photo Credit: Radisson Hotel Group will now grow its brand in Indonesia on its own. Skift / Hanna Sörensson
Skift Take
A sense of betrayal, conflict of interest, and constant changes at the global hotel chain all contributed to the breakup of Radisson Hotel Group’s joint venture with Panorama Group to expand Radisson brands in Indonesia. It seems to be a story on how not to do a partnership.
It seemed a good match when it was sealed in March 2013. At the time, Carlson Rezidor Hotel Group, which was raring to expand in Indonesia, thought why not create a joint venture with Panorama Group, a leading travel and tourism player with vast connections and local knowledge.
Panorama was also a trusted partner with whom Carlson had signed a joint venture in 1999 to establish Carlson Wagonlit Travel in Indonesia.
PT Carlson Panorama Hospitality, 70 percent-owned by the international chain, was gearing up to bring in 20 Radisson and Park Inn by Radisson management contracts to top-tier Indonesian cities such as Jakarta, Bali, Surabaya, and Yogyakarta, and emerging cities including Makassar, Palembang, and Medan by 2020.
Fast forward to today, the joint venture brought in a grand total of six contracts, one of which fell through.
What's more, a dispute erupted between the global chain and a developer, believed to be Saphir Group, that is in arbitration in Singapore, where R
