Distribution of Hotel Room Nights Occupied by Type and Province in Indonesia, 2022

According to a recent report from BPS – Statistics, star-rated hotels in Indonesia accounted for 72.8% of all occupied accommodation rooms in 2022. However, this number decreased from 93.4 million in 2017 to 58.8 million in 2022, representing a Compound Annual Growth Rate (CAGR) of -8.8%. In the same period, non-classified hotels experienced a decline as well, with room nights sold decreasing from 51.2 million in 2017 to 22 million in 2022, reflecting a CAGR of -15.5%.

Photo by visualsofdana on Unsplash

Among the star-rated hotels, three-star establishments sold the highest number of room nights, totaling 20.3 million or 34.5% of all star-rated rooms occupied. This was followed by 4-star hotels with 19.5 million room nights (33.2%) and 5-star hotels with 8.3 million room nights (14.1%). In the non-classified category, larger properties with more than 41 rooms accounted for 7.6 million room nights or 34.5% of the total, while properties with 10-24 rooms captured 7.1 million room nights, representing 32.3% of non-classified rooms sold.

Analyzing the distribution of room nights sold by province, the five provinces with the highest number of star-rated rooms sold in 2022 were Jawa Barat (9.6 million or 16.3%), DKI Jakarta (8 million or 13.7%), Bali (6.1 million or 10.4%), Jawa Timur (6.1 million or 10.3%), and Jawa Tengah (4.6 million or 7.9%). These provinces collectively accounted for nearly 59% of all star-rated rooms sold. The top ten provinces represented approximately 78% of all star-rated rooms sold in 2022.

By examining the distribution of room nights sold by type and province, hotel operators and investors can gain a comprehensive understanding of the demand for different types of accommodations in various regions of Indonesia. This analysis, combined with historical and projected growth rates for hotel types and provinces, can help identify productive markets and enable targeted marketing and development strategies.

Investors and developers can utilize this type of information to identify provinces with high demand and growth potential, aiding them in making informed decisions regarding hotel development or acquisition in those areas.

Overall, understanding the distribution of room nights sold by star-rating and province in Indonesia provides hotel operators and investors with critical market intelligence. This knowledge empowers them to make informed decisions related to market entry, expansion, pricing, and product development. By leveraging this type of data, they can enhance their competitiveness, optimize profitability, and align their offerings with market demands.

Ross Wood

Investment Consultant Manager

PT. Hotel Investasi Strategis

Hotel Portfolio Strategy & Asset Management Professional, Hotel Acquisitions & Transactions Advisory

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