IHG has announced robust expansion plans for Indonesia, identifying it as a key growth market within the region. Revealing a strong pipeline especially in the midscale segment for Holiday Inn and Holiday Inn Express, IHG will also strengthen its position in the market with the launch of Hotel Indigo, which will bring its representation of brands in the market to five, alongside InterContinental and Crowne Plaza.
IHG’s aim is to have a portfolio of preferred brands in the best developed and emerging markets and with its fast growing tourism industry, booming middle class and increasing wealth, Indonesia offers huge potential for rapid growth.
In 2011, Indonesia’s GDP crossed USD 1 trillion, joining ranks with China and India. Growth in Indonesian also hit a 15-year high of 6.5 percent in the same year and is projected to come in between 6.3 and 6.7 percent this year.
In June, findings from an inaugural Asia Pacific Family Travel 2012 survey by Turner Media Solutions – and in partnership with Holiday Inn – found that family travel in Indonesia is growing, with domestic trips accounting for 48% of family travel in the country: average 1.50 trips per person, USD 381 per person per trip, total segment value = USD 723 million. This has been fuelled by an expanding middle class of over 50 million, partnered with political stability and the need to link the resource-rich islands across Indonesia.
A Midscale Market
Responding to this boom, IHG’s midscale brands Holiday Inn and Holiday Inn Express are well-positioned to fulfil the accommodation needs in this primarily midscale market of both domestic and foreign travel in Indonesia.
IHG’s growth in Indonesia will see the entry of Holiday Inn Jakarta Kemayoran which is set to open in 2013, Holiday Inn Resort Bali Benoa in 2014, and Holiday Inn Solo in 2016.
For the past 11 years, Holiday Inn has been named the Best Mid-Market Hotel Brand in the World and Asia Pacific by readers of Business Traveller magazine. It also won the Highest in Guest Satisfaction among Midscale Full Service Hotel Chains by J.D Power and Associations in 2011.
The brand has particular resonance the family travel segment, as it was founder Kemmons Wilson who saw the need for a consistent and family friendly hotel product in an era of poor quality roadside hotels in 1952. This year, the brand celebrates its 60th anniversary as it continues to evolve and innovate into new and emerging markets like Indonesia.
Holiday Inn is one of the world’s most iconic hotel brands with 3,389 hotels across the brand family worldwide. There are 109 Holiday Inn Hotels & Resorts across Asia Pacific. 70 hotels are in the region’s pipeline, which include India, Indonesia, Thailand, Vietnam and the Philippines.
Holiday Inn Express
With 2,152 Holiday Inn Express hotels and 200,839 rooms globally, and another 451 hotels in the pipeline, Holiday Inn Express is one of the largest and fastest growing hotel brands in the world. The newly-launched brand in South East Asia opened the doors of its first hotel with the Holiday Inn Express Bangkok Siam in Thailand.
Since its official launch in June, the Holiday Inn Express brand has continued to pick up momentum with more signings secured for hotels across the region. There are currently 18 hotels scheduled in the Holiday Inn Express pipeline over the next two years, of which half will be in Indonesia.
These include Holiday Inn Express Jakarta Thamrin, Holiday Inn Express Jakarta Pluit, both scheduled for 2013, Holiday Inn Express Bali Legian and Holiday Inn Express Semarang Simpang Lima scheduled for 2013; and Holiday Inn Express Surabaya Atria, Holiday Inn Express Solo, Holiday Inn Express Yogyakarta, Holiday Inn Express Jakarta Simatupang and Holiday Inn Express Bogor scheduled for 2014.
Increased Brand Representation
IHG will also introduce yet another one of its brands to Indonesia in 2016 with the Hotel Indigo Jakarta Kemang.
Hotel Indigo will be the group’s 5th brand in the market, and Indonesia will be the 2nd market in South East Asia to launch the brand in the region.
Hotel Indigo offers guests a boutique hotel design paired with the peace of mind they get from staying with a large hotel group. The brand pioneers a new concept targeting upscale travellers who seek a unique hotel experience of an interesting location that incorporates historic, cultural and natural elements in its design as well as great service. Each Hotel Indigo property is uniquely designed to reflect the culture, character and history of the hotel’s locality to ensure no two hotels are the same.
The first Hotel Indigo to open in Asia Pacific is Hotel Indigo Shanghai on the Bund in 2010. South East Asia will see its first Hotel Indigo in Thailand with Hotel Indigo Bangkok Wireless Road, set to open at the end of 2013.
The Bali Boom
Along with Holiday Inn Resort Bali Benoa and Holiday Inn Express Bali Legian, the popular resort destination will also see the addition of a 160-room InterContinental Bali Canggu Resort in 2015, bringing the IHG property count in Bali to 5.
Located next to the famous Echo Beach in Bali, the InterContinental Bali Canggu will offer surf & beach views rooms, as well as a deluxe villa cluster, spa, wedding chapel, cinema, ballroom, function rooms, and customary food and beverage facilities.
The group’s current Bali offering includes the InterContinental Bali Resort and Holiday Inn Resort Baruna Bali.
“Indonesia is a key growth market for us and we are excited about the opportunities here,” said Alan Watts, Vice President Operations, South East Asia. “With the scale we have built and the operational excellence we have achieved globally, we are confident that we will be able to bring world class delivery to our hotel owners and a high quality experience to our guests in Indonesia.”