Indonesian hotels cash in on budget boom - TTG Asia - Leader in Hotel, Airlines, Tourism and Travel Trade News
 
Wednesday . November 26 . 2014
         
Follow TTG Asia on Twitter
TTG ASIA this week
TTG Asia Luxury
 
Share |
Indonesian hotels cash in on budget boom
Mimi Hudoyo, Jakarta, March 25, 2011
 

INDONESIAN hotel chains are increasingly jumping onto the budget bandwagon to meet the growing travel demand for low-cost yet reliable properties.

 

Aston International has 22 of its select-service Favehotels under construction, with two already operating. Santika Indonesia Hotels & Resorts will add 14 more of its two-star Amaris this year and nine next year, joining its current seven. Newcomers Intiland's Whiz Hotel and Dafam Hotels & Resorts' Hotel Marlin are also opening a number of value-for-money projects.

 

Aston International Indonesia vice president sales and marketing Norbert Vas said: “A lot of the demand has to do with the rise of LCCs (low-cost carriers).”

 

With a low investment of between 16 billion rupiah (US$1.78 million) and 18 billion rupiah, and rates between 300,000 and 350,000 rupiah per night, investors can also expect ROI within three-and-a-half to four years.

 

Hotel wholesale agent MG Holiday sales and marketing manager Eddy Yeo said: “There is really a big demand for budget properties across the country right now, but investors and operators should watch out that in the next couple of years there might be an oversupply.”

 

However, Yeo warned that three-star hotels were strong competitors. “With an extra 50,000 to 100,000 rupiah, some clients who tried the budget hotels moved to stay in three-stars, which have bigger rooms and more facilities.”

 

Print Top Stories
 
COMMENTS
 
Editor's pick >
   
Securing the unchained

by Paige Lee Pei Qi

Fighting Ebola's fallout

by Mimi Hudoyo

Value for money

by Paige Lee Pei Qi, Hannah Koh, Xinyi Liang-Pholsena, Prudence Lui and S Puvaneswary

GM express lane

by Raini Hamdi

Putting the house in order

by Paige Lee Pei Qi