Indonesia's "bedbank" brand MG Group has received equity investment from Northstar Group, the Southeast-Asia-focused private equity fund.
The terms have not been disclosed. While this is equity investment, with new shares issued, Northstar is not a majority shareholder at this stage, MG Group tells Tnooz.
Based in Jakarta, Indonesia, MG Group claims a dominant position in the Indonesian market. It offers rooms to travel agencies, tour operators, aggregators and global wholesalers from its database.
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. It supplies this hotel inventory to global wholesalers, aggregators, and tour operators, such as via a partnership with Sabre.
It also provides Southeast Asian travel agencies with inventory at more than 300,000 hotels globally. It says it generates more than 1 million room nights per year via several distribution channels, including a booking platform and XML connections for agencies.
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.
Some investors believe the hotel accommodation distribution market has strong prospects, as witnessed by this year's purchase of Hotelbeds, the world's largest hotel wholesaler, by British buyout firm Cinven and the Canada Pension Plan Investment Board.