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800 New Hotels Projected for Indonesia

Aug 28, 2013

During the next ten years, 700 to 800 new hotels with 100,000 rooms are expected to open in Indonesia, according to TOPHOTELPROJECTS.

As a result of new air routes, more business trips, and future market opportunities, more tourists are projected to come to the region and numerous new hotels are expected to meet that demand. According to the Bureau for National Statistics, more than 1,600 hotels existed in Indonesia in 2012an increase of nine percent from the previous year.

The average occupancy rate in 2012 was 53 percent, although there is a relatively large diversification between certain parts of the country. Bali reached an occupancy rate of 61 percent, while Jakarta attained 57 percent. In Riau, the occupancy rate never reached more than 50 percent in any month of the year.

The Accor Group leads the market⎯⎯operating about 11,000 rooms in the first half of 2012followed by Aston International with more than 6,000 rooms. Almost all companies want to expand their capacity in the future. The Accor Group opened about half a dozen new properties in the second half of 2012 and the first half of 2013.

The local company Santika Hotels & Resorts plans to become the market leader. According to their own statements, they were operating 57 hotels nationwide by mid-2013. This number should rise to 100 by 2016. In 2014 and 2015, Santika plans to invest $300 million as part of the expansion program.

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