Hilton set to open five more hotels in Indonesia

Hilton set to open five more hotels in Indonesia

INDONESIA - The international chain of full-service hotels and resorts, Hilton Worldwide, is set to open five new hotels with luxury, upscale and midscale classifications in Indonesia over the next few years, to benefit from the country's growing business- and leisure-travel sectors.

The US-based hotel chain made a comeback to the capital city this year after opening one of its upscale brands, DoubleTree by Hilton, earlier this month.

Situated on JL. Pegangsaan Timur, Central Jakarta, the hotel is ready for a grand launch next month, marking the opening of the company's third hotel in the country after the Hilton Bandung and Conrad Bali.

Guy Phillips, Hilton Worldwide's vice president of development in Asia Pacific said that Hilton, which previously managed and operated the Sultan hotel in Jakarta, said he saw 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," Phillips said.

"If you look for example in Jakarta we see a tripling of passenger movements in the city over the past 10 years," he continued.

The hotel chain is also introducing its midscale brand, the Hilton Garden Inn in Bali, which is scheduled to open by the third quarter of this year.

Phillips said that another Hilton Garden Inn to be located in Kuta, also in Bali was currently under development and set to open in 2016.

He also said that Hilton would open their luxury brand, Waldorf Astoria, at Thamrin 9 Tower in Jakarta, in 2017.

Phillips said that the hotel operator was involved in ongoing discussions to develop new projects in Sumatra, Kalimantan and Sulawesi, where Hilton is looking to bring the Hilton Garden Inn to regional centers 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.

According to data from the Indonesian Hotel and Restaurant Association (PHRI), the current number of hotel rooms across the archipelago now stands at around 134,000, with an extra 10 per cent expected to become available this year.

Phillips said that the hotel operator had noticed an increase in competitiveness in the hotel industry within the country, following the emergence of local hotel companies.

"We've seen an increase in supply and offering in terms of product level, there is an emergence of local hotel companies in budget hotels. That's a sign of maturity in the market," Phillips said.

"It's a very competitive landscape but there is a growing market at the same time," he said.

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