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METEORIC RISE IN THE SUPPLY OF 3 & 4-STAR HOTEL ROOMS IN INDONESIA OVER THE PAST DECADE

Updated: Feb 18, 2023

ID HOTELIER - After the meteoric growth in the number of star-rated hotels in Indonesia since 2009, especially in the 2, 3, and 4-star market, growth is expected to moderate over the next few years.


Indonesia Traditional Food - Media From WiX
Indonesia Traditional Food - Media From WiX

With a room supply CAGR (2009-2021) of 10.2%, 12.6%, and 10.6% for 2, 3, and 4-star hotels respectively, we forecast room supply CAGRs of 4.2% to 2026 for star-rated hotels.


The supply of 3, 4, and 5-star hotel rooms is projected to grow at a CAGR of 4.8%, 5.6%, and 2.7% respectively to 2026. We forecast that about 78,200 additional star-rated hotel rooms will be added to the inventory of classified properties by 2026. (32,500 3-star, 35,200 4-star, and 6,500 5-star).


Meteoric Rise in the Supply of 3 & 4-Star Hotel Rooms in Indonesia
Meteoric Rise in the Supply of 3 & 4-Star Hotel Rooms in Indonesia

 

About Writer

Ross Woods is a seasoned hotel investment advisor with over 30 years of global experience in hotel asset management, portfolio management, and hotel advisory services. Known for his collaborative-based consulting style that integrates a high level of strategic and analytical expertise, his “smarts” are sought by clients to solve complex issues, make better decisions and realize the highest risk-adjusted investment returns. His clients include banks, private investors, REITs and hotel management companies in the United States, South East Asia, Australasia, Europe, and Dubai.


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