As demand for the meeting, incentives, conventions and exhibitions (MICE) market increases each year in Jakarta’s suburbs, the hospitality business has been growing stronger.
The deputy secretary-general of the Association of Indonesian Hotels and Restaurants (PHRI), Carla Parengkuan, said that domestic and international chain hotels would flourish over the next two to three years in places such as Bekasi, Bogor, Depok, Tangerang and South Tangerang.
“Market demand in the suburbs is high, especially for local government meetings. Thus, hotels that are built in that area will have meeting rooms,” Carla told The Jakarta Post.
Febry Anindita, the corporate marketing communication manager for international chain operator Aston International, said that the firm plans to open hotels for its two- to four-star brands in second-tier cities in West Java and Banten next year.
She said the company plans to open two-star Favehotels in Bogor, West Java; and Cengkareng, Banten; near the country’s main gateway, Soekarno-Hatta International Airport; and hotels for its four-star brand Aston Hotels in Sentul, Bogor and Bekasi.
“Even though those cities are not big, the market is promising because people today are looking for convenience when they have meetings and workshops. We believe our business will grow more from hotels in this area,” she told the Post.
She said that Favehotels provide small- to medium-sized meeting rooms, while Aston hotels provided larger rooms that could accommodate up to 300 people.
The robust market is also leading new chain players to expand their business into the suburbs.
Dafam Hotel Management managing director Andhy Irawan said the company plans to operate its four-star brand Grand Dafam in Bekasi, West Java, in 2014.
“When the economy grows, the business will follow, and people will need facilities to accommodate their meetings and other activities. We believe Grand Dafam will become the leading four star hotel in Bekasi,” Andhy told the Post recently during a media gathering in Jakarta.
Since its establishment in 2010, the firm has grown to operate seven hotels, including the two-star Vio Hotel in Bandung; the three-star hotel Marlin in Pekalongan, Central Java; and the Grand Dafam in Semarang, Central Java; with occupancy rates of around 80 percent, according to the company.
The company plans to operate 40 hotels by the end of 2015 in major cities including Jakarta, Yogyakarta, and Lampung.
Another new player with plans to enter the suburbs is Tauzia Hotel Management, which currently operates four-star Harris Hotels and two-star POP! Hotels in Jakarta, Bandung, Yogyakarta, and Denpasar, Bali.
Tauzia spokesperson Yani Sinulingga said that the firm has plans to operate several hotels in Greater Jakarta in the next two years.
“With more than 100 hotels in the pipeline until 2015, surely we would like to tap into growing demand in Greater Jakarta,” Yani said. She said the firm plans to open POP! Hotels and several hotels from its new three-star brand Yellohotel in the suburbs.
Another operator, international chain Accor, is set to open a hotel from its economy brand, Mercure, in Serpong Alam Sutra in 2013 and its mid-scale Novotel in Sentul in 2014. Accor executive Gerard Guillouet said that the firm planned to double its number of hotels in Indonesia to 100 by the end of 2015.