Because of new air routes, more business trips and the development of additional markets for business and leisure, it is estimated that 700 to 800 new hotel projects with 100,000 rooms will rise in Indonesia during the next 10 years, according to data from Tophotelprojects.
According to the Bureau for National Statistics, more than 1,600 hotels existed in Indonesia in 2012, offering nearly 156,000 rooms – an increase of 9% over 2011.
While only eight million foreign travelers visiting the country in 2012, the average occupancy rate for the year stood at 53% — with minimal seasonal variation. However, Bali reached 61% occupancy and Jakarta sat at 57% last year. At the same time, in Riau occupancy never reached more than 50%, according to Tophotelprojects.
Accor is the market leader in Indonesia with 11,000 rooms by the first half of 2012. In second place is Aston International (Hawaii) with more than 6,000 rooms, followed by local company Santika Hotels & Resorts.
The largest hotel operators in Indonesia (first half-year 2012)
Accor, 10,837 rooms
Aston International, 6,087
Santika Hotels & Resorts, 5,653
Swiss Bel-Hotel, 4,196
Starwood, 2,702
Tauzia Hotel Management, 2,319
Sahid Hotel Network, 2,042
IHG, 1,995
Hyatt, 1,971
Discovery Hotels & Resorts, 1,918
Aryaduta Hotel Group, 1,725
Singgasana Hotels & Resorts, 1,568
Horison Hotels, 1,504
Jayakarta Hotels & Resorts, 1,295
Grand Zuri Hotels, 1,022
Aerowisata Hotels & Resorts, 977
Prime Plaza Hotels & Resorts, 968
Accor opened about half a dozen new properties in the second half of 2012 and the first half of 2013, and plans to open three additional hotels through October (two in the capital region, one in Bali). The local company Santika Hotel & Resort in the midterm wants to become the market leader, according to Tophotelprojects. It reports operating 57 hotels as of mid-2013, and wants 100 hotels by 2016. In 2014 and 2015, Santika plans to invest US$300 million as part of its expansion program.
At the same time, Discovery Group is focusing on Bali and wants to acquire 400 to 600 acres land at Benoa Bay to build a tourism center. But Tophotelprojects said they have to expect resistance as locals say the project is too large and could change the character of the islands in long term.