Research &
Forecast Report
Surabaya | Hotel
2H 2014
Accelerating success.
“Five new 3-star hotels providing a total of 724 rooms during 2014
brought the cumulative supply of star-rated hotel rooms to 7,865.
In 2014, occupancy rates of star-rated hotels in Surabaya dropped
by between 7 and 12% from 61.9% to 51.4% on average mainly due
to the new supply. However, average daily rates for the whole year
strengthened from IDR475,396 to IDR504,152 YoY.”
Cumulative Hotel Rooms in Surabaya
8,000
7,000
6,000
5,000
Rooms
Ferry Salanto | Associate Director - Research
Hotel Sector
3,000
2,000
1,000
Supply
0
In 2014, Surabaya witnessed five new three-star hotels that
started operating, providing 724 rooms. The details of the new
hotel projects that entered the Surabaya Hotel Market are
presented in the table below.
List of New 3-star Hotels Operating Along 2014
name of hotels
4,000
location
#rooms
G Suites Hotel
Gubeng
118
Zoom Smart Hotel Jemursari
Jemursari
80
Ibis Basuki Rahmat
Basuki Rahmat
180
Crown Prince
Basuki rahmat
211
Quest Hotel - Aston
Ronggolawe
135
Source: Colliers International Indonesia - Research
One of The Accor brands, Pullman, became the new brand
for existing hotels, which was previously known as Meritus
Surabaya City Center. This five-star category hotel is now the
Pullman Surabaya City Center.
Overall, with the five additional hotels in Surabaya, the hotel
rooms in Surabaya totalled 7,865 as of December 2014.
2010
2011
2012
3-star
2013
4-star
2014 2015F 2016F 2017F
5-star
Source: Colliers International Indonesia - Research
Based on composition, three-star hotels still dominate in terms
of number of rooms and number of hotels, followed by four-star
hotels.
The Composition of Star-Rated Hotel in Surabaya
The Distribution of Star-Rated Hotel in Surabaya
Based on Number of Rooms
5 star
23%
South
North
Surabaya
Surabaya
6%
6%
East
Surabaya
24%
3 star
44%
Central
Surabaya
49%
West
Surabaya
15%
4 star
33%
Source: Colliers International Indonesia - Research
Up to 2017, the projected number of new hotel rooms (7,242) will
be of the same composition as the existing stock, with three-star
hotels dominating. The number of five-star hotels will be lesser,
and we will see more four-star hotels being built in the future.
Source: Colliers International Indonesia - Research
Based on Number of Hotelss
The Composition Number of Rooms Provided by
Future Hotels up to 2017
5 star
13%
4 star
28%
5 star
8%
3 star
51%
3 star
59%
4 star
41%
Source: Colliers International Indonesia - Research
Based on location, half of the operating star-rated hotels are
located in Central Surabaya, which is mainly in the business
area of Surabaya. Like the other sectors, South, East and West
Surabaya are starting to become the locations of new hotels in
Surabaya.
2
Source: Colliers International Indonesia - Research
Research & Forecast Report | 2H 2014 | Hotel | Colliers International
List of Future 3 to 5-star Hotels up to 2017
hotel projects name
location
projected
completion
no. of
rooms
3-star
Harris hotel @Skyline Twin Towers
Mayjen Sungkono
2015
263
Citadines @Marvell City
Ngagel
2015
280
Holiday Inn Express Surabaya Atria
Kedungdoro
2015
240
Grandhika
Ngagel
2015
150
Solaris - Bagong Ginayan
Bagong Ginayan
2015
180
Swiss-Belinn Tunjungan
Tunjungan
2015
187
Cleo - Jemursari
Jemursari
2015
80
Puncak Dharmahusada
Ir. Soekarno
2015
400
Asmaya Juanda
Juanda
2015
126
Cleo - Ondomohen
Ondomohen
2015
60
Ibis Style - Jemursari
Jemursari
2015
200
Yello - Jemursari
Jemursari
2015
140
Aria Central Hotel Surabaya - Ade Irma Suryani
Ade Irma Suryani
2015
150
Yello - Embong Sawo
Embong Sawo
2015
171
Continent My Tower - Rungkut
Rungkut
2015
134
Harper Surabaya
Mayjen Sungkono
2015
184
Harris Hotel Gubeng
Gubeng
2015
160
Dafam Kayun
Kayun
2016
200
Artotel - Jemursari
Jemursari
2016
115
Ayola - Nginden
Nginden
2016
90
Ibis Ngagel
Ngagel
2017
170
Rich Palace Hotel
HR Muhammad
2015
195
Wahana - Basuki Rakhmat
Basuki Rakhmat
2015
220
Swiss-Belhotel Darmo Surabaya
Darmo
2015
232
Grand Clarion Hotel Surabaya
Raya Juanda
2015
555
Grand Aston - Tunjungan
Tunjungan
2015
320
Novotel - The Samator
Kedung Baruk
2015
172
Kila Widodaren Aerowisata Surabaya
Widodaren
2015
161
DoubleTree Hilton
Basuki Rakhmat
2015
198
Four Points by Sheraton Surabaya
Tunjungan
2015
300
Howard Johnson
A. Yani
2016
170
Mercure @Praxis
Embong Sonokembang
2016
304
Bedrock Hotel - margorejo
Margorejo
2017
150
Swiss-Belhotel Ciputra World Surabaya
Mayjen Sungkono
2015
220
Aryaduta (@CITO)
A. Yani
2015
245
Ascott @Supermall Galaxy
Boulevard Pakuwon Indah
2015
120
4-star
5-star
Source: Colliers International Indonesia - Research
3
Research & Forecast Report | 2H 2014 | Hotel | Colliers International
Demand for Hotel Rooms
From January to November 2014, the number of foreign tourists
who came through Juanda International Airport was 198,109.
The number of foreign tourists decreased compared to that in
the same period in 2013. The change in government and political
conditions reduced the interest of foreign tourists to come and
visit. Nevertheless, foreign tourists only compose a minor part of
the hotel guest profile in Surabaya.
The length of stay of foreign and domestic tourists increased
by 10.60% and 12.84% or by 2.93 and 12.84 days, respectively,
compared to that in 2013.
Length of Stay
3.50
3.00
Number of Foreign Tourist Coming to Surabaya
through Juanda Airport
2.50
days
2.00
250,000
1.50
1.00
200,000
0.50
150,000
0.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
YTD
foreign
domestic
100,000
Source: Colliers International Indonesia - Research
50,000
Hotel Performance
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
YTD
Source: Colliers International Indonesia - Research
Based on country of origin, tourists from Malaysia still dominate
among the total foreign tourists who came through Juanda
International Airport, followed by tourists from Singapore (10%)
and China (6%).
The Composition of Foreign Tourist Based on
Country of Origin
Average Occupancy Rates (AOR)
In 2014, the AOR for three to five star-rated hotels in Surabaya
decreased by 7% to 12% compared to that in the previous year.
The decreasing trend in the occupancy rate was mainly due
to the increase in the supply of new hotels, which heightened
the competition among hotels and the concerns following the
central government’s austerity measures that included a policy
limiting government offices’ outings, including meetings, in
hotels.
Malaysia
22%
Singapore
10%
Others
55%
China
Taiwan 6%
Japan
4%
3%
Source: Colliers International Indonesia - Research
4
Research & Forecast Report | 2H 2014 | Hotel | Colliers International
Average Occupancy Rates (AOR) of Star-Rated
Hotels in Surabaya
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
3 star
4 star
5 star
Market Review
Since the issuance of the memorandum from the Ministry of
Administrative and Bureaucratic Reform which instructed all
government bodies to use their own meeting rooms and banned
them from renting meeting halls or other venues, including
hotels, resorts and villas, hoteliers in Surabaya have reported a
drop in income. Meeting halls may be rented only if government
venues cannot accommodate all the meeting participants.
For some periods, hotels in Surabaya enjoyed income from
meeting rooms that were used by government institutions.
This government market composed about 60% of hotel income
from meeting rooms. With such policy, the MICE business is
demanding greater creativity and the beginning of network
expansion and partnership with buyers. All in all, there is hope
that MICE industries will have a promising future as various
international events are set to be held in capital cities like Jakarta
or Surabaya.
average
Source: Colliers International Indonesia - Research
Average Daily Rates (ADR)
Although occupancy level generally dropped, the ADR of starrated hotels increased by 1.6% to 14.0% compared to that of the
previous year. The ADR of three-star hotels was relatively flat and
only grew by 1.63% YoY. The ADR for four-star hotels reached the
highest growth YoY of 13.91%, followed by five-star hotels with
3.79% in the same period.
Average Daily Rates (AOR) of Star-Rated Hotels in
Surabaya
IDR 800,000
IDR 700,000
IDR 600,000
IDR 500,000
IDR 400,000
IDR 300,000
IDR 200,000
IDR 100,000
IDR 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
3 star
4 star
5 star
average
Source: Colliers International Indonesia - Research
5
Research & Forecast Report | 2H 2014 | Hotel | Colliers International
485 offices in
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Primary Authors:
Ferry Salanto
Associate Director | Jakarta
62 21 521 1400 ext 134
[email protected]
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Accelerating success.