IHG plans large expansion in Indonesia

10 Sep 2012

InterContinental Hotels Group (IHG) have announced plans to expand significantly in Indonesia, opening at least 14 hotels across the country with an emphasis on its mid-scale brands.

The group said that Indonesia’s strong economic growth was creating an increased demand for accommodation around the country. Last year, Indonesia’s GDP surpassed US$1 trillion and growth hit a 15-year high of 6.5 per cent.

“Indonesia is a key growth market for us and we are excited about the opportunities here,” said Alan Watts, IHG’s vice-president of operations in South East Asia 

IHG sees Indonesia’s hotel market as primarily a mid-scale one and therefore believes its Holiday Inn and recently created Holiday Inn Express brands are best suited to meeting demand. Of the 18 Holiday Inn Express hotels it plans to open in Asia in the next two years, half will be in Indonesia. 

In the Indonesian capital alone, next year IHG will open the 250-room Holiday Inn Jakarta Kemayoran, along with the 102-room Holiday Inn Express Jakarta Thamrin, and 300-room Holiday Inn Express Jakarta Pluit. 

It will also open a 200-room Holiday Inn Express in Semerang, a large port city in the central Java region. In addition to this will be two hotels in Bali, the Holiday Inn Resort Bali Benoa and Holiday Inn Express Bali Legian. 

Then in 2014, the group plans to open three more Holiday Inn Express brand hotels in the Simatupang area of Jakarta, Bogor and Yogyakarta.

For the leisure market, the group will open a 160-room InterContinental Bali Canggu Resort in 2015. The following year will see the Indonesian debut of its Indigo brand – boutique-style hotels targeting more upscale travellers – with the opening of Hotel Indigo Jakarta. 

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Nicholas Olczak

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