Northstar backs SE Asia business accommodation supplier
Northstar Group has taken what is understood to be a minority stake in MG Group – a Southeast Asian “bedbank” that supplies hotel rooms to travel agents, wholesalers, aggregators and tour operators – for an undisclosed sum.
Headquartered in Indonesia, MG comprises a number of different distribution channels that serve various segments of the travel industry. Its core business, MG Bedbank, is used by retail travel agents through a B2B booking platform and hundreds of XML interfaces. Other outlets include RoomDeal, Rajakamar.com, Myhotelfinder.com, Corporate RoomDeal and MG Distributions.
The company claims to be the most preferred bedbank in Southeast Asia, working with more than 5,000 hotels in the region. It plans to use Northstar's capital, expertise and experience to support continued growth in Southeast Asia and further development of its technology and human resources.
"MG's innovative management team has done an excellent job of leveraging its dominant position in the Indonesian market to grow its regional presence. We believe that as an independent business with significant financial backing, MG will be able to achieve its full potential," said Aditya Kamath, executive director at Northstar, in a statement.
The GP, which closed its fourth fund at $810 million in November 2015, invests in growth companies in Indonesia and to a lesser extent, other countries in Southeast Asia. Last month, it launched a S$331.4 million ($238 million) privatization bod for of Singapore-listed Innovalues. Northstar also participated in the most recent funding round for Indonesian ride-hailing and delivery platform Go-Jek.
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