Our previous post, “Significant Growth in Indonesia’s Star-Rated Hotel Supply 1985-2018”, generated much discussion about how the growth at the provincial level was distributed among the star-ratings. In this post we have briefly reviewed the growth in rooms by star rating and province for two periods, a five year period between 2013 and 2018 and a nine year period, from 2009 to 2018.
As illustrated in the table below, Lampung Province, a province occupying the southern tip of the island of Sumatra, witnessed the highest growth in 3-star room supply over the period 2013-2018, with a compound annual growth rate (CAGR) of 35.4%. It was followed by Sulawesi Selatin (a province in the southern peninsular of Sulawesi) and DI Yogyakarta which grew at CAGRs of 32% and 31% respectively. See the map at the end of the post to locate the provinces.
Nusa Tenggara Barat – NTB, (West Nusa Tenggara), a province which comprises the western portion of the Lesser Sunda Islands, with the exception of Bali, which is its own province, witnessed the highest growth in 5-star room supply over the past five years, with a CAGR of 14.6%. It was followed by Sumatera Selatan with a CAGR of 8.7%.
Our earlier post, “The Growth of Star Rated Hotel Room Demand by Indonesia Province 2012-2017”, found that the demand for 2-star hotels had led the way growing at a CAGR of 33% over the five year period. It was followed by 3-star, 4-star and 5-star room demand, which had grown at CAGRs of 28.8%, 26% and 16.1% respectively. It appears that the recent demand growth has grown more strongly than supply growth, resulting in increased occupancies across the country.
Growth in Star-Rated Hotel Room Supply by Star Rating & Indonesia Province 2013-2018 (Ranked by 3-Star Growth)
![](http://hotelinvestmentstrategies.com/wp-content/uploads/2019/05/Growth-in-Star-Rated-Hotel-Supply-by-Star-Rating-Province-2013-2018.png)
The growth rates in star rated hotel room supply over the nine year between 2009 and 2018 is tabled below. As expected the growth rates for the two periods, 2009-2018 and 2013-2018 are positively correlated with a correlation coefficient for 4-star hotels of 0.72, followed by 1-star at 0.61 and 5-star at 0.50.
Growth in Star-Rated Hotel Room Supply by Star Rating & Indonesia Province 2009-2018 (Ranked by 3-star Growth)
![](http://hotelinvestmentstrategies.com/wp-content/uploads/2019/05/Growth-in-Star-Rated-Hotel-Supply-by-Star-Rating-Province-2009-2018.png)
With tourist arrivals almost doubling over the past five years, growing from 8.8 million in 2013 to 15.8 million in 2018, Indonesia’s star-rated hotel supply has experienced a dramatic expansion over the same period as illustrated in the tables above. Our report, “Short-Term Forecasts of Visitor Arrivals in Indonesia, 2018-2020”, can be downloaded here.
![](http://hotelinvestmentstrategies.com/wp-content/uploads/2019/05/Indonesia-admin-map-1024x784.jpg)