Hilton unveils expansion plans in Indonesia

JAKARTA – Booming economy linked with a vibrant domestic travel market turn Indonesia into a hot place for hotels. The Indonesian Hotels and Restaurants Association latest data shows that there will be 50,000 new supplies, increasing classified rooms available in the country to over 200,000 by the end of 2014 compared to 171,000 at the end of 2013. If non-classified hotels are also included, the total of supplied rooms in 2013 stood at 431,000.
 

In an interview with Indonesia daily  the Jakarta Post, Guy Phillips, Hilton Worldwide’s vice president of development in Asia Pacific, indicated that the group is ready to open five new hotels with luxury, upscale and midscale classifications over the next few years.The US-based hotel chain made a comeback to Jakarta after a hiatus of several years. Hilton has been in process with the Sultan Hotel for a long time due to name use by the Indonesian owner which continued to put Hilton next to his hotel despite the withdrawal of the US chain.
 

Double Tree by Hilton opened early May in Jakarta on Jl. Pegangsaan Timur, Central Jakarta. Its grand launch is expected next month. With Double Tree, Hilton will have three properties in Indonesia, after the Hilton Bandung and Conrad Bali.
 

For Phillips to the Jakarta Post, Hilton sees growing opportunities to develop their hotel chains in Indonesia thanks to the exponential growth in country’s middle class, the rapid expansion of low-cost carriers and the development of infrastructure around airports. “We are very much attracted by the increasing number of international tourists coming to Indonesia, as well as the domestic tourism within the country,” he explained to the newspaper.
 

A fourth hotel is already planned to open this year. Hilton Worldwide will open its midscale brand Hilton Garden Inn in Bali by the third quarter of this year. Another Hilton Garden Inn is planned in Kuta for an opening forecast in 2016. The US chain is also due to have a deluxe property in Jakarta by 2017 with the opening of a Waldorf Astoria property at Thamrin 9 Tower. They are also plans for a property in Surabaya, Indonesia’s second largest city.
 

Guy Phillips further indicated to the Jakarta Post to look at new projects in Sumatra, Kalimantan and Sulawesi, especially by developing a network of midscale Hilton Garden Inns to regional cities that are supported by international airports.“At this point, Jakarta, Bandung, Bali and Surabaya remain the focus for our upscale, full-service hotels, but we’re starting to look at other cities. Double Tree and Hilton Garden Inn are brands we are looking to expand at the regional levels,” he said to the newspaper.
 

Table: Top provinces in Indonesia for classified accommodation in 2013