Commercial & Industrial Property News Update

Indonesia - IHG Announces Massive Expansion

September 12, 2012

The hotel chain will launch its new Hotel Indigo brand in the country, along with new Holiday Inn, Holiday Inn Express and InterContinental properties.

Identifying Indonesia as a key growth market in Asia, hotel group IHG has announced the addition of several new hotels in the country over the next few years.

Along with new hotels under its mid-range Holiday Inn and Holiday Inn Express brands, and a new InterContinental resort, IHG will also launch its new Hotel Indigo brand in the country. Together with Crowne Plaza, Hotel Indigo will bring the number of brand representations in the market to five.

Indonesia has been on an economic roll, with the country's GDP crossing the USD 1 trillion-mark in 2011, putting its economy on par with China and India. In the same year, economic growth hit a 15-year high of 6.5%, with growth forecast to be between 6.3% and 6.7% this year.

Turner Media's inaugural Asia Pacific Family Travel 2012 survey in June - conducted in partnership with Holiday Inn - revealed that family travel in Indonesia is growing. Domestic trips were popular, making up 48% of all family trips in the country.

With an average of 1.5 trips per person, and at USD 318 per person per trip, the total value of the segment is estimated at USD 723 million, further highlighting Indonesia's importance to the mid-scale Holiday Inn brands.

The survey added that the rise in domestic trips has been fuelled by an expanding middle class of over 50 million, coupled with political stability and the need to link Indonesia's resource-rich islands.

IHG announced that over the next four years, it will open three new Holiday Inn hotels, nine new Holiday Express outlets, a new InterContinental resort as well as a new Hotel Indigo.

Under the Holiday Inn brand: Holiday Inn Jakarta Kemayoran will open in 2013, Holiday Inn Resort Bali Benoa in 2014, and Holiday Inn Solo in 2016.

Under the Holiday Inn express brand: Holiday Inn Express Jakarta Thamrin, and Holiday Inn Express Jakarta Pluit, both scheduled for 2013; Holiday Inn Express Bali Legian and Holiday Inn Express Semarang Simpang Lima scheduled for 2013; and Holiday Inn Express Surabaya Atria, Holiday Inn Express Solo, Holiday Inn Express Yogyakarta, Holiday Inn Express Jakarta Simatupang and Holiday Inn Express Bogor scheduled for 2014.

In addition, 2015 will see the opening of the 160-room InterContinental Bali Canggu Resort, bringing the number of IHG properties in Bali to five.

For 2016, IHG will introduce the Hotel Indigo Jakarta Kemang, the group's fifth brand in the market. Indonesia will be the second market in Southeast Asia to have the brand.

Offering an up-scale boutique hotel stay backed by large hotel group experience, Hotel Indigo pioneers a new concept combining interesting location with historic, cultural and natural elements in its design, underscored by great service. The first Hotel Indigo was opened on the Shanghai Bund in 2012, and will be followed by the first Hotel Indigo in Thailand with Hotel Indigo Bangkok Wireless Road, set to open at the end of 2013.

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