Indonesian hotel occupancy surges to five-year high

Indonesia’s hotel sector experienced a surge in occupancy last month, reaching its highest July level since 2012.

According to the latest data from STR, the country’s hotel rooms were 68.0% full in July 2017, 11.1% higher than the same month last year.

Analysts noted that Indonesia experienced substantial demand growth in the transient and group segments, as well as post-Ramadan increases in terms of corporate travel and MICE business.

Despite this, Indonesia’s average daily rate (ADR) decreased 1.5% year-on-year to IDR1.09 million (approx. US$82), while revenue per available room (revPAR) rose 9.4% to IDR741,435. This absolute revPAR was the highest for a July in Indonesia since 2011.

Indonesia’s hotel performance remains lower than the Asia Pacific average however; in July 2017, region-wide occupancy rose 3.8% to 74.4% while ADR increased 1.9% to US$98 and revPAR climbed 5.7% to US$73.

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