Indonesia’s star-rated hotels across the 34 provinces hosted 103.4 million room nights in 2018, up 10.7% from 93.4 million in 2017. Over the past five years (2013-2018) the demand for star-rated hotels (room nights occupied) has grown at a robust CAGR of 16%, compared to 18% over the ten-year period 2008-2018.
The demand for 2-star hotels, albeit from a small base, has led the way growing by a CAGR of 26% over the past five years. This is followed by 3-star, 4-star, 5-star and 1-star growing at CAGRs of 19%, 16%, 9%, and -2% respectively.
Distribution of Room Night Demand by Hotel Star-Rating in Indonesia, 2008, 2013 & 2018
As a result, the distribution of demand has shifted between the rating categories as illustrated in the graph above. In 2008, 5-star hotels captured 24.3% of demand compared to 15% in 2018. Today, 3-star hotels account for about 34% of demand compared to 26% in 2008.
The island of Bali accounts for more star-rated room demand compared to any other province. DKI Jakarta captures more 1, 2 and 3-star room nights compared to any other province.
Ranking of Room Nights Demand by Province and Star Rating, 2018
While the demand for star rated hotel accommodation across the country grew by 16% CAGR over the past five years, the growth in Jakarta and Bali, the two most popular destinations, grew more than the national average, at CAGR 23% and 18.1% respectively.
Growth in Star-Rated Hotel Room Demand by Province & Star Rating 2013-2018 (CAGR%)