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

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.

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

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 governments 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

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

Research & Forecast Report | 2H 2014 | Hotel | Colliers International

485 offices in
63 countries on
6 continents

Primary Authors:
Ferry Salanto
Associate Director | Jakarta
62 21 521 1400 ext 134
Ferry.Salanto@colliers.com

United States: 146

Canada: 44
Latin America: 25
Asia: 38
ANZ: 148
EMEA: 84

$2.1

billion in
annual revenue

Colliers International Indonesia

World Trade Centre 10th & 14th floor
Jalan Jenderal Sudirman Kav. 29 - 31
Jakarta 12920
Indonesia
TEL 62 21 521 1400

1.46

billion square feet

under management

15,800

professionals
and staff

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Accelerating success.