Hotel Destinations Indonesia - Hotels & Hospitality Group | May 2016 - JLL Asia Pacific
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Hotels & Hospitality Group | May 2016 Hotel Destinations Indonesia
Contents
The Journey So Far... 04
1960s
06 What’sHotel
Next and
For Hospitality’s First IHG hotel –
InterContinental Bali
Indonesian Hospitality?
Timeline 1973
1970s
First Hyatt hotel –
1927 Development of the Bali Hyatt
Nusa Dua integrated
First Inna resort project
Group hotel –
Bali Hotel
2001
• First Alila hotel –
2013 Alila Jakarta
• First Marriott hotel –
Bali International JW Marriott Jakarta
2011
Hotel and Hospitality’s 08 Airport upgraded
2002
Timeline
Lombok International
Airport - Bandara
Internasional Lombok First Tauzia hotel –
Harris Resort Batam
Waterfront
2014 2016
2015
First Carlson Rezidor
• Easing of visa requirements for foreign visitors hotel – Radisson Benoa
• Initiative to upgrade ten tourist destinations: International visitor and Radisson Legian
Lake Toba (North Sumatra), Tanjung Kelayang arrivals exceeded
(Belitung), Tanjung Lesung (Banten), the Thousand 9.7 million
Islands (Jakarta), Borobudur Temple (Magelang), Visa waiver for
169 countries
Indonesia’s Key Destinations
Mount Bromo (East Java), Mandalika (South Lombok),
10
Jakarta
Labuan Bajo (East Nusa Tenggara), Wakatobi
Bandung Surabaya
(Southeast Sulawesi), and Morotai (North Maluku) JLL celebrates
35 years in
Bali
Lombok
Indonesia
Legends
Hotel Openings
Other Developments
Transportation
Visitor Arrivals
City Profiles 11
Bali 11
Jakarta 12
Lombok 13
Surabaya 14
Bandung 15
16 Quick Facts
Contributors 17
The Journey So Far...
Hotel Destinations Indonesia 05
The tropical island of Bali is a dream destination regularly featured on the cover
of glossy travel magazines. It offers an alluring mix of equatorial landscapes,
white-sand beaches, luxury hotels and resorts, plus dining, shopping and
nightlife. But it wasn’t always that way. Tourism and hospitality are relatively
“There are very few places in the world that
young industries in Indonesia, and Bali is the shining jewel. can boast the diverse selection of tourism
In 1971, Indonesia’s government undertook a study to determine the potential
of Balinese tourism to create employment, support economic development experiences that Indonesia offers. With
and place Indonesia on the global travel map. The Bali Tourism Development
Corporation was established to deliver the Nusa Dua Master Plan, and convert eight sites on the UNESCO World Heritage
a coastal village in the south of the island into a vibrant destination with
deluxe hotels by Indonesian and global brands, plus conference facilities, golf, List, it offers an abundance of opportunities
watersports and nightlife.
in the tourism and hospitality, and its
The success of Nusa Dua resulted in improved infrastructure and more
southern coastal towns being developed for tourism during the 1990s. Chic hotel
resort designs became influenced by Balinese art and culture. As more tourists
related investment sectors.”
arrived, Bali promoted itself assertively to compete with popular Asian island Corinna Toh
destinations, such as Phuket and Koh Samui, and new players like Sri Lanka, Executive Vice President, Strategic Advisory at JLL Hotels & Hospitality Group
Boracay and Langkawi.
In the early 2000s, a commodities-driven economic boom and a soaring
Australian Dollar saw visitation from Australia rise significantly. More recently,
in 2013, Ngurah Rai International Airport was expanded ahead of the APEC dynamic profile as a city of business, leisure and retail has attracted a broad-
Summit in Nusa Dua to facilitate more flights from Asia and Australia. Combined based hospitality mix comprising international hotel brands and successful
with Nusa Dua, thriving resorts like Kuta and Jimbaran, offering fine beaches, homegrown operators.
hotels, shopping and nightlife, and surfing hotspot Seminyak, which has
transformed into a gourmet destination, have made Bali the poster child of “The growth of the hotel industry has been very fast in Jakarta and Bali,
Indonesian leisure tourism. which are now well-known destinations, but Indonesia offers a diversity of
exotic experiences,” says Djodi Trisusanto, Chief Operating Officer of PT.
Alongside the high expectations for inbound tourism is a strong, fast-growing Hotel Indonesia Natour, which operates 12 hotels in select locations, including
domestic tourism sector. Visitor dynamics are evolving 40 years after Bali kick- Jakarta, Bali, Yogyakarta and Medan.
started Indonesian tourism. In 2015, it received 7.15 million domestic visitors,
an 11.77% yearly growth, and four million international visitors. Geographically As travel patterns diversify, Indonesia wants visitors to explore more of the
close to Bali, Australia has been the premier inbound market, generating almost world’s largest archipelago, which comprises 17,508 tropical islands. “There
one million annual arrivals, followed by Japan, China, Malaysia and South are very few places in the world that can boast the diverse selection of tourism
Korea. Pillar regional markets are now growing fast and hoteliers are predicting experiences that Indonesia offers. With eight sites on the World Heritage
sustained arrivals growth from India. List, it offers an abundance of opportunities in the tourism and hospitality, and
its related investment sectors”, says Corinna Toh, Executive Vice President
“The good news is that more visitors are coming to Bali each year, not just for Strategic Advisory at JLL Hotels & Hospitality Group.
the first time, but also as repeat guests. Conventions and incentives business
are also showing a strong increase year to year,” says Ricky Putra, Chairman of With Indonesian tourism on an upward curve, more destinations want to follow
the Bali Hotels Association (BHA), which represents more than 100 star-rated in the footsteps of Bali and Jakarta. “We are starting to see more demand
hotels. for good quality hotels, especially in the mid-market segment, in places like
Yogyakarta, Lombok, Raja Ampat, East Java and South Sumatra,” says Mr
The BHA liaises with Balinese authorities to provide the hospitality sector’s Trisusanto.
viewpoint on important issues, such as infrastructure development,
sustainability and tourism promotion. “The big challenge over the last three From its humble beginnings, the Indonesian tourism industry now plays a
years has been the increased supply of hotel rooms,” says Mr Putra. “We now significant role as a pillar of the Indonesian economy. Led by Bali and Jakarta,
have about 130,000 rooms in Bali, with more hotels opening in 2016. This fast the past four decades have witnessed a transformation of tourism and
rate of supply growth has put downward pressure on occupancies and average hospitality in Indonesia.
rates.”
As incomes grow, more domestic tourists will explore the Indonesian
Mirroring the rise of Bali as a holiday retreat, the fast-changing capital Jakarta archipelago, and the accommodation preferences of Asia’s affluent short-break
has established itself as a business and city-break destination in South East vacationers will further evolve. Tourism growth in Indonesia has painted a bright
Asia’s competitive travel landscape. In recent years, Jakarta has become a picture, but hoteliers will need to engage their creative capacities to anticipate
pivotal hub for regional low-cost carriers and international airlines, and its new trends and developments.
What’s Next For Indonesian Hospitality?
Hotel Destinations Indonesia 07
Few countries in Southeast Asia have the many distinct cultures, traditions,
natural beauty and vitality of Indonesia. While Bali and Jakarta are shining
examples of the success of Indonesia’s tourism industry, the world’s largest “Indonesia now features as a key growth
archipelago has far more to offer. Mark Edleson, President, Commune Hotels
and Resorts, which includes the ultra-luxe Alila brand commented, “Indonesia market for most of the global hotel brands.”
still has a lot of exotic destinations, with the history, with the culture, with
natural beauty to be developed, and they are becoming more accessible.” Tony Ryan
Managing Director, Global Mergers & Acquisitions at JLL Hotels & Hospitality Group
This abundance of opportunity is reflected in Indonesia’s tourism master
plan which seeks to steer tourists deeper into the wider expanse of Java and
Sumatra as well as Sulawesi, Nusa Tenggara, Maluku and Papua.
1970s and ‘80s was the Nusa Dua project”. As part of a master plan for the
Jumping into the fray development of tourism in Bali2, the project, with good infrastructure and land
titles, brought in the global brands that helped kick-start international tourism.
Indonesia welcomed almost 10 million arrivals in 2015, with 12 million predicted “It also started changing (Bali) from a village-based culture to an attraction-
for 2016, and a target of 20 million set for 2019. To achieve this, the government based culture,” adds Commune’s Edleson.
has waived visas for tourists from 169 nations, increased marketing promotions
on destinations and further relaxed foreign ownership rules in tourism-related This approach has been replicated in Lombok. “Lombok is one area where the
assets. And working in favor of the government’s plan is the growing interest government has outlined to improve tourism infrastructure and you have to give
among global and Asia Pacific investors for both hotel assets and operating the government credit that they recognise that, but it doesn’t happen overnight,”
tourism businesses. says Bury.
“Indonesia now features as a key growth market for most of the global hotel Changing tourist profile
brands,” says Tony Ryan, Managing Director, Global Mergers & Acquisitions at
JLL Hotels & Hospitality Group. While Indonesian hoteliers are more competitive Over the decades, the tourism industry has grown manyfold in Indonesia. It
in the 3- and 4-star market segment, foreign operators typically have a commands a large share of the Southeast Asian tourism market (coming in
stronghold in the boutique and luxury category. However this is set to change fourth in travel and tourism competitiveness3 among Southeast Asian countries)
as local and foreign hoteliers are looking to expand their footprint across all even with increasing competition from emerging destinations such as Vietnam,
segments. Cambodia and Myanmar.
Already, Waldorf Astoria, Rosewood, Six Senses and Langham are planning Opportunities for the hospitality sector will emerge as new visitors are
to open hotel projects in Jakarta and Bali. Hilton is expanding in Indonesia channeled into new tourism hotspots, where land values are cheaper than Bali
with two projects in Surabaya and Marriott is opening its chic boutique brand, and Jakarta. International visitor arrivals in Indonesia rose 4.14 percent in the
Moxy, in Bandung. Alila, which currently manages eight boutique luxury hotels first quarter this year to 2.41 million, despite the impact of security concerns
and resorts and a luxury cruise in Indonesia, is also opening another hotel in Jakarta. For the first time in February this year, Mainland China5 became the
development in Jakarta this year and Bintan in 2017. top source country for foreign visitors in Indonesia, followed by Singapore,
Malaysia, Australia and Japan. Indeed, a strong and sustainable intra-regional
Indonesian developers have played a key role in the growth of the industry to tourists flow is a positive development. Investors and developers should pay
date. Typically, family-owned conglomerates dominate many of Indonesia’s close attention to the changing travel demographics.
large corporations and the tourism/hotel division of the company is often
just one part of a major conglomerate. As the second and third generation of Locally, Indonesia’s Generation X and Y are increasingly keen to explore
business leaders evaluate their overall portfolios, “restructuring of hotel assets new destinations, both overseas and throughout Indonesia. They travel
through disposal, joint venture or rebranding could be effective levers for them independently or in small groups, are heavily influenced by social media and
to optimise their holdings,” says Adam Bury, Vice President, Investment Sales, have specific demands for the design and services at the hotels they choose.
Asia at JLL. “Most of the savvy operators and owners have recognised the need to diversify
demand sources in order to grown and limit the impact of external demand
Still, the government will look to address the requirements of investors shocks,” says Ryan. “Now is the time to look and be ready for the next big
“including enhancements to land tenure and title, financing, local licensing trend.”
and regulatory issues, as well as improving security concerns for the overall
industry,” adds JLL’s Bury. Recognising the importance of meetings and conventions, the government
recently established an Indonesia Convention and Exhibition Bureau6 to
Plugging the gap strategise development of the meetings, incentives, conventions and exhibitions
industry. There is also the potential to further develop Islamic tourism where
While there is promising potential to vastly increase the number of destinations there are large visitor numbers from the Middle East, parts of Asia and even the
and advance new aspects such as marine tourism, the lack of adequate local market.
infrastructure in Indonesia has been a bottleneck to its development.
With the support of critical government commitments and local and
The government is already moving to plug the infrastructure gap and has international expertise and investment, Indonesia’s tourism industry is going
allocated US$1 billion1 this year to improve safety for land, sea and air transport, beyond Bali and Jakarta, to solidify its position as one of the region’s pre-
including airport runways, terminals, and air navigation systems. Indonesia’s eminent leisure and business destination.
Minister of Transportation Ignatius Jonan also pledged that the government
is committed to build 15 new airports by 2018. Existing terminals and runways
including those in Bali, Jakarta and Labuan Bajo are being upgraded and References:
expanded to accommodate more flights. Better roads and highways are also 1 “Indonesia commits to 15 new airports by 2018”, Air Transport World, Nov. 19, 2015
being constructed across the archipelago and ferry services improved to 2 The Bali Tourism Development Corporation website, http://www.btdc.co.id/
connect the various islands. 3 The Travel & Tourism Competitiveness Index Ranking 2015, World Economic Forum data as of 2015
4 Statistics of Foreign Tourist Visits for March, Indonesia’s statistics bureau, May 2016
Mark Edleson, reflecting on his more than 40 years working experience in 5 “More Chinese, fewer Australians visit Indonesia”, The Jakarta Post, April 1, 2016
Indonesia, noted that “a successful platform to initiate investment in the 6 “New bureau to strengthen MICE industry, lure visitors”, The Jakarta Post, March 29, 2016
1960s
Hotel and Hospitality’s
First IHG hotel –
InterContinental Bali
Timeline 1973
1970s
First Hyatt hotel –
1927 Development of the Bali Hyatt
Nusa Dua integrated
First Inna resort project
Group hotel –
Bali Hotel
2001
• First Alila hotel –
2013 Alila Jakarta
• First Marriott hotel –
Bali International JW Marriott Jakarta
2011
Airport upgraded
Lombok International 2002
Airport - Bandara
Internasional Lombok First Tauzia hotel –
Harris Resort Batam
Waterfront
2014 2016
2015
First Carlson Rezidor
• Easing of visa requirements for foreign visitors hotel – Radisson Benoa
• Initiative to upgrade ten tourist destinations: International visitor and Radisson Legian
Lake Toba (North Sumatra), Tanjung Kelayang arrivals exceeded
(Belitung), Tanjung Lesung (Banten), the Thousand 9.7 million
Islands (Jakarta), Borobudur Temple (Magelang), Visa waiver for
Mount Bromo (East Java), Mandalika (South Lombok), 169 countries
Labuan Bajo (East Nusa Tenggara), Wakatobi
(Southeast Sulawesi), and Morotai (North Maluku) JLL celebrates
35 years in
Indonesia
Legends
Hotel Openings
Other Developments
Transportation
Visitor Arrivals
1979 1985
First Melia hotel
First Mandarin
– Bali Sol Hotel
Oriental hotel –
Mandarin Oriental 1981
Jakarta
JLL expands into 1991
Indonesia in association
1976 with PT Procon Indah First Starwood hotel –
Sheraton Senggigi Beach
First Hilton hotel – Resort Lombok and Sheraton
Hilton Jakarta Laguna Hotel Bali
1994
• First Accor hotel –
ibis Jakarta Kemayoran
• First Shangri-La hotel –
Shangri-La Jakarta
1997
1995
JLL in Surabaya
2000’s
First Four Seasons hotel –
Regent Jakarta
Proliferation of
Low Cost Carriers 1998
JLL in Bali
First Archipelago hotel -
Grand Aston Bali
2018
18th Asian Games 2019
Jakarta-Palembang
Targets 20 million
international visitor arrivals
15 new airports across
Indonesia and the Light
Rail Transit in Jakarta
10 Hotel Destinations Indonesia
Indonesia’s
Key Destinations
Jakarta
Bandung Surabaya
Bali
LombokHotel Destinations Indonesia 11
Bali
Known as the island of the gods, Bali is one of the most popular tourist
destinations in the world. Few places on earth are blessed with the
amount of sandy beaches, rugged coastlines, lush rice terraces, barren
volcanic hillsides, panoramic views, art galleries, local traditions,
culture and nightlife that Bali has to offer. On top of all this, Bali is
benefiting from increased domestic and international visitor arrivals
thanks to continuous infrastructure improvements, increased air
connectivity and a relaxation of visa requirements.
HIGHLIGHTS
Tourism Demand Supply Outlook
For the tenth consecutive year, In 2015, the fastest growing source From 2016 to 2019, the upcoming supply Moving forward, visitor arrivals are
international visitor arrivals to Bali markets to Bali were the United of international branded hotels in Bali expected to increase, facilitated by
increased year-on-year (y-o-y) in 2015. Kingdom, United States and Mainland is estimated at 9,500 rooms, which improvements in air connectivity,
Despite the flight disruptions caused China, which increased 31.9%, 19.8% will increase by a compound annual the implementation of the visa-free
by the volcanic eruptions of Mount and 17.3% y-o-y respectively, due to the growth rate (CAGR) of 9.1%, if all hotels policy for citizens of 169 countries
Raung and Mount Rinjani during 2015, visa waiver initiatives. As at YTD March materialise. Notable new hotel brands and the boost in Indonesia’s annual
international visitor arrivals to Bali 2016, visitor arrivals from Mainland expected to debut in the next few years tourism marketing budget to three
increased 6.2% y-o-y to reach China increased 29.0% y-o-y, overtaking include Six Senses, Rosewood and the trillion Rupiahs. In the medium term,
four million. The growth in visitor Australia as the leading source market Waldorf Astoria. the supply pipeline is significant and is
arrivals can be attributed to the easing to Bali. Together, Mainland China and likely to place pressure on the overall
of visa requirements, which as of April Australia accounted for approximately hotel market performance, however
2016 is applicable to nationals of 45.9% of all international visitor arrivals growing demand will gradually absorb
169 countries. as at YTD March 2016. incremental supply.
NEW HOTELS
292
306
rooms
240
rooms
222
rooms
134
rooms
60
rooms
NOTABLE HOTEL DEALS
Tune Hotels Bali Portfolio Hilton Garden Inn Bali Alila Seminyak Bali Wyndham Tamansari ibis Styles Bali Mandapa, a Ritz
The Villas Bali Hotel & Spa Ngurah Rai Airport Jivva Resort Bali Petitenget Carlton Reserve
QUICK FACTS
IDR IDR
UPCOMING HOTELS
Renaissance Bali Uluwatu Resort &
4.0 million 2,785 rooms 62.9% 1.9 million 1.2 million
Spa (2016) International Visitor Number of New Rooms^ Occupancy ADR RevPAR
Mövenpick Resort & Spa Jimbaran Arrivals (2015) (2015)
Bay (2016)
Note: Bali hotels refer to upscale stock
The Westin Ubud Resort & Spa (2017) Source: STR Global (YTD March 2016), Bali Government Tourism Office, JLL
ADR - Average daily rate, RevPAR - Revenue per available room ^ Statistics Indonesia - Number of rooms in classified hotel in Bali Province12 Hotel Destinations Indonesia
Jakarta
Primarily a city of government, business, industry and trade, Jakarta
is also the main gateway to Indonesia’s many tourism destinations.
Although the capital of the world’s fourth most populous nation is
seldom viewed as a centre for tourism and culture itself, efforts to
improve the city’s reputation as a service and tourism city have been
stepped-up. In recent years, Jakarta has expanded its facilities for
visitors by developing new multi-star luxury hotels, entertainment
centres, fine restaurants as well as tourist attractions in an effort to
boost visitor arrivals.
HIGHLIGHTS
Tourism Demand Supply Outlook
As the national capital, Jakarta In 2015, international visitor arrivals to Majority of the new supply which In the lead up to the 2018 Asian Games,
remains a key business gateway in Jakarta grew modestly by 2.6% y-o-y to entered the market in 2015 was in the which will be hosted in Jakarta, the
Indonesia and an important corporate reach 2.3 million. The majority of the top economy and midscale sector with the city’s tourism market will benefit from
destination. As at YTD March 2016, 10 source markets registered increases exception of the 173-room Raffles Hotel increased air connectivity and improved
visitor arrivals decreased 3.5% y-o-y, including Mainland China (+23.3% and the 380-room Fairmont Hotel which public infrastructure, including the
due to the bombing in January 2016. y-o-y) and South Korea (+11.7% y-o-y) were the only two luxury hotel openings. development of a light rail system.
Nevertheless, the government’s ongoing driven by the government’s visa waiver Looking forward, approximately 2,300 Hotel trading performances is likely to
commitment to ease visa requirements policies. Additionally, the development international branded hotel rooms are remain modest due to the significant
together with the increase in flight of Shari’ah tourism has also supported expected to enter the market in 2016, supply of new hotels expected to enter
connectivity between Jakarta and major the increase in tourists from Middle representing a y-o-y increase of 6.0% if the market over the next few years.
gateway cities, including new flights Eastern countries, with Saudi Arabia all projects materialise. Notable luxury Nevertheless, the entry of new hotel
to Guangzhou as of August 2015 and registering a 7.8% y-o-y increase hotel openings in the pipeline include brands will help to diversify the tourism
London as of March 2016, will help to in 2015. the 283-room The Westin Jakarta offerings which, in conjunction with the
boost visitor arrivals. and the 125-room Four Seasons Hotel visa waiver policies, will help to boost
Jakarta. visitor arrivals.
NEW HOTELS
505
306
rooms
380
rooms
293
rooms
173
rooms
160
rooms
NOTABLE HOTEL DEALS
Grand Mercure Jakarta Fairmont Jakarta Sheraton Grand Jakarta Raffles Jakarta Holiday Inn Express
Kemayoran Gandaria City Jakarta Wahid
Hasyim
QUICK FACTS
IDR IDR
UPCOMING HOTELS
Four Points by Sheraton Jakarta,
2.3 million 3,507rooms 52.2% 2.3 million 1.2 million
Thamrin (2016) International Visitor Number of New Rooms Occupancy ADR RevPAR
Four Seasons Hotel Jakarta (2016) Arrivals (2015) (2015)^
The Westin Jakarta (2016) Note: Jakarta hotels refer to upscale stock
Source: STR Global (YTD March 2016), Statistics Indonesia, JLL ^ Statistics Indonesia - Number of rooms in classified hotel in DKI Jakarta
ADR - Average daily rate, RevPAR - Revenue per available room ProvinceHotel Destinations Indonesia 13
Lombok
Located to the west of Bali, Lombok is a tropical island in the West
Nusa Tenggara province of Indonesia. Offering natural landscapes, a
traditional way of life and diverse flora and fauna, Lombok has captured
the growing attention of domestic and international visitors. In recent
years, Lombok’s popularity as a resort destination has increased as
travellers relish in the tranquillity and natural beauty that the island has
to offer.
HIGHLIGHTS
Tourism Demand Supply Outlook
Since the construction of the new In 2015, international visitor arrivals to The majority of existing hotel supply Moving ahead, visitor arrivals to Lombok
Bandara International Lombok Airport Lombok increased marginally by 0.5% in Lombok comprise locally branded are expected to grow, driven by the
in October 2011, international visitor y-o-y, as demand was temporarily owner-operator hotels and resorts. government’s visa waiver policies and
arrivals to Lombok have surged. From dampened due to the volcanic activity International branded hotels are limited increased destination marketing efforts
2011 to 2015, international arrivals from Mount Rinjani in November 2015. and currently include the Sheraton including the promotion of halal tourism
increased by a compound annual Nevertheless, the market has quickly Senggigi, the Oberoi Lombok and the to attract Middle Eastern tourists.
growth rate (CAGR) of 40.7%. In 2016, recovered as reflected in the robust Novotel Lombok. Looking forward, the The Mandalika Project is expected to
the government earmarked Lombok growth in visitor arrivals during the first development the Mandalika Project, an facilitate tourism growth in Lombok, if
as one of ten emerging destinations quarter of 2016, increasing 42.3% y-o-y. integrated tourism hub, will feature a it successfully completes, and further
in Indonesia, which will further boost number of international branded hotels demonstrates the government’s ongoing
the attractiveness of the Island to both including the 250-room Pullman and the willingness to invest in the tourism
foreign and domestic visitors. 400-room Club Med as well as luxury industry outside of Bali and Jakarta.
residences, a golf course and various Improved infrastructure and the entry of
retail and dining facilities. international hotels under the proposed
development is expected to enhance
the tourism offering and landscape of
Lombok.
NEW HOTELS
164
rooms
138
rooms
104
rooms
NOTABLE HOTEL DEALS
Golden Tulip Hotel Zmax D Hotel Praya Katamaran Resort
QUICK FACTS
IDR IDR
UPCOMING HOTELS
Melia Lombok Tangkong (2018)
70,217 793 rooms 68.0% 1.3 million 911,000
Pullman (2018) International Visitor Number of New Rooms Occupancy* ADR* RevPAR*
Renaissance Lombok Gili Trawangan Arrivals (2015) (2015)^
(2020) Note: Lombok hotels refer to marketwide stock ^ Statistics Indonesia - Number of rooms in classified hotel in Nusa
Source: Tourism Industry Association, Statistics Indonesia, JLL Tenggara Barat Province
ADR - Average daily rate, RevPAR - Revenue per available room * Based on JLL estimates of Lombok Resorts 201514 Hotel Destinations Indonesia
Surabaya
Known as the “city of heroes” due to the historical battle for Indonesia’s
independence, Surabaya is one of the country’s key economic and
commercial centres. With a population of approximately 2.8 million,
Surabaya is the second largest city in Indonesia. The city has a well-
established infrastructure system and is accessible by land, sea and air
transportation systems. Surabaya is also one of South-East Asia’s busiest
seaports, facilitating a range of principal exports including sugar,
tobacco and coffee.
HIGHLIGHTS
Tourism Demand Supply Outlook
In 2015, Surabaya welcomed As one of the primary business The existing hotel supply in Surabaya Improvements to infrastructure and
approximately 200,851 international destinations after Jakarta, Surabaya’s is currently dominated by local owner new visa-free entries for key source
visitors. According to the Directorate of tourism market is dominated by operator hotels. In 2015, the majority markets are expected to support
Civil Aviation, domestic travellers account corporate and meetings, incentives, of the supply additions to the market international visitor arrivals to Surabaya
for approximately 90% of total arrivals. In conventions and exhibitions (MICE) were in the economy and midscale in 2016 and beyond. Given the strong
2013, the Surabaya Juanda International demand, especially from the domestic sector including the 236-room Holiday presence of manufacturing, trade and
Airport completed its expansion with the market. Surabaya is also a domestic Inn Express Surabaya Centre Plaza and industries within the city, Surabaya’s
construction of Terminal Two which is leisure destination popular for its retail the 132-room Ibis Styles Jemursari. tourism market is expected to continue
now dedicated to serving international offerings and is the gateway to Mount International hotel brands expected to to be dominated by domestic corporate
flights. Currently, Surabaya is serviced Bromo, a popular tourist attraction, debut over the next few years include demand which will benefit from a
by international flights to Singapore, approximately four hours drive from the the Four Points by Sheraton and the stronger economic growth outlook.
Malaysia and Hong Kong. city. Doubletree by Hilton Surabaya.
NEW HOTELS
236
rooms
132
rooms
129
rooms
NOTABLE HOTEL DEALS
Holiday Inn Express ibis Styles Jemursari Premier Inn Surabaya
Surabaya Centre Plaza Airport
QUICK FACTS
IDR IDR
UPCOMING HOTELS
Four Points by Sheraton (2016)
200,851 2,017 rooms 53.0% 400,000 212,000
DoubleTree by Hilton Surabaya (2017) International Visitor Number of New Rooms Occupancy* ADR* RevPAR*
Arrivals (2015) (East Java) (2015)^
Note: Surabaya hotels refer to midscale and economy stock ^ Statistics Indonesia - Number of rooms in classified hotel in Jawa Timur
Source: Based on JLL estimates (YTD March 2016), Statistics Indonesia (East Java) Province
ADR - Average daily rate, RevPAR - Revenue per available room * Based on JLL estimates 2015Hotel Destinations Indonesia 15
Bandung
The picturesque city of Bandung, capital of West Java, is imbued
with lush highlands and a temperate climate. With a diverse retail
and culinary offering, the city is a popular weekend and staycation
destination for domestic tourists. Bandung is also one of Indonesia’s
burgeoning information technology centres and features a vibrant
culture of music, fashion and arts. Given its close proximity to Jakarta,
Bandung is also an attractive MICE destination and the city has been
host to a number of international summits including the recent Asian-
African Conference in 2015.
HIGHLIGHTS
Tourism Demand Supply Outlook
Located approximately two hours’ Visitor arrivals to Bandung are largely According to the Bandung Tourism Given Indonesia’s youthful demographic
drive southeast of Jakarta, Bandung dominated by domestic demand due Authority, there are currently 275 hotels mix and the rising affluence of the middle
is an ideal retreat and weekend to the city’s popularity as a staycation in Bandung, the majority of which are class, domestic tourism to Bandung is
destination for domestic and foreign weekend destination with its plethora budget and midscale hotels. In 2015, expected to remain robust in the medium
tourists. In 2015, approximately 160,000 of affordable shopping outlets and cool several international branded hotels term. Combined with Bandung’s proximity
international visitor arrivals arrived temperate climate. In addition to leisure opened, including the 193-room Best to Jakarta and the availability of low
via Bandung’s Husein Sastranegara tourism, corporate and MICE demand Western Premier and the 270-room cost carrier to many domestic cities,
International Airport, representing are becoming increasingly popular Crowne Plaza Bandung. Looking visitor arrivals is forecast to increase in
an 11.5% y-o-y decline from 2014. given the ease of access from forward, the supply of international the future. Furthermore, infrastructure
The decline in arrivals may be Jakarta to Bandung. hotel brands are expected to increase development including the construction
attributed to the reduction of gradually. This includes the debut of of the country’s first high-speed railway
Air Asia’s flight frequency between new brands such as the Moxy Bandung connecting Bandung and Jakarta,
Bandung and Singapore. and the Innside by Melia, both of which scheduled to complete by the end of
are scheduled to open in 2017. 2019, will help improve accessibility to
Bandung.
NEW HOTELS
270
rooms
193
rooms
162
rooms
NOTABLE HOTEL DEALS
Crowne Plaza Best Western Premier Four Points by Sheraton
Bandung La Grande Hotel Bandung
Bandung
QUICK FACTS
IDR IDR
UPCOMING HOTELS
Innside by Melia (2017)
159,647 3,298 rooms 50.0% 448,000 224,000
Moxy Bandung (2017) International Visitor Number of New Rooms Occupancy* ADR* RevPAR*
Arrivals (2015) (West Java) (2015)^
Note: Bandung hotels refers to marketwide stock ^ Statistics Indonesia - Number of rooms in classified hotel in Jawa Barat
Source: Tourism Industry Association, Statistics Indonesia, JLL (West Java) Province
ADR - Average daily rate, RevPAR - Revenue per available room * Based on JLL estimates 201516 Hotel Destinations Indonesia
Quick Facts
International visitor arrivals 2015 Top 3 source markets in 2015
1 2 3
9.7 million SINGAPORE MALAYSIA AUSTRALIA
INDONESIA h 3.1% y-o-y 18.4% 15.7% 12.0%
1 2 3
7.9 million MAINLAND CHINA SOUTH KOREA JAPAN
VIETNAM h 0.9% y-o-y 22.7% 14.2% 8.6%
1 2 3
29.8 million MAINLAND CHINA MALAYSIA JAPAN
THAILAND h 20.5% y-o-y 26.6% 11.4% 4.6%
1 2 3
25.7 million SINGAPORE INDONESIA MAINLAND CHINA
MALAYSIA i 6.3% y-o-y 50.3% 10.8% 6.5%
1 2 3
5.4 million KOREA USA JAPAN
PHILIPPINES h 10.9% y-o-y 25.0% 14.5% 9.2%
1 2 3
1.3 million THAILAND MAINLAND CHINA JAPAN
MYANMAR h 15.0% y-o-y 15.7% 11.4% 6.9%Hotel Destinations Indonesia 17
Contributors
Mike Batchelor Tony Ryan
Managing Director Managing Director
Investment Sales Global Mergers & Acquisitions
mike.batchelor@ap.jll.com tony.ryan@ap.jll.com
Corinna Toh Adam Bury
Executive Vice President Vice President
Strategic Advisory Investment Sales
Asia Asia
corinna.toh@ap.jll.com adam.bury@ap.jll.com
Alison Li
Associate
Strategic Advisory
Asia
alisonx.li@ap.jll.com
For further enquiries on hotel and hospitality advisory and investment opportunities in Indonesia, kindly contact:
Corinna Toh Adam Bury
Executive Vice President Vice President
Strategic Advisory Investment Sales Asia
corinna.toh@ap.jll.com adam.bury@ap.jll.com
+65 9617 3107 +65 8313 4600Tengger Semeru National Park, East Java, Indonesia
About JLL Hotels & Hospitality Group JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totalling more than $68 billion worldwide. Between negotiating the world’s most extraordinary, enticing, and profitable property deals, the group’s 350-strong global team also closed more than 4,400 advisory, valuation and asset management assignments. Investors worldwide turn to JLL to shape their strategies, tailor their portfolios and maximize the value of their assets. We are recognized as the global leader in real estate services across hospitality properties of all shapes and sizes. Our expert advice is backed by industry- leading research.We apply our broad spectrum of hotel valuation, brokerage, asset management and consultancy services through every phase of the hotel lifecycle. We have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world. Whether you are looking for a hotel or you’re ready to sell, we’ll use our capital markets expertise, hospitality industry knowledge and global relationships to put the right parties together and execute a bespoke deal that exceeds your objectives. To find out more, talk to JLL. www.jll.com/hospitality
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