AccorHotels: 200 Hotels in 2020 in Indonesia

AccorHotels Portfolio in Indonesia

AccorHotels will be Indonesia’s giant in hospitality until 2020, according to the management of the Paris-based group of hotels. The company recently announced plans to operate 200 hotels in Indonesia by 2020, turning Indonesia into its biggest hotel network market in Southeast Asia.

AccorHotels is already market leader in the Indonesian archipelago. The company operated in 2014 85 hotels offering 16,863 rooms in 24 cities, opening on average some 115 new properties per year. Accor expanded last year in Jakarta, Surabaya, Bali, Makassar, Tangerang, Bandung and Semarang. In 2015, AccorHotels had the objective of extending its network to 100 hotels and 20,000 rooms by 2015. Its target has been reached recently with the Novotel Makassar Grand Shayla City Center, its 100th property boosting the group presence in 32 cities.

AccorHotels commitment towards Indonesia acknowledges the strong commitment of the group for the country’s tourism industry. Indonesia should receive over 10 million foreign travellers this year and target to double this number until 2019.For 2016, the government already looks at welcoming 12 million foreign visitors, especially as it offers now free visa-on-arrivals to over 90 countries.

“We have been operating in Indonesia for over 20 years and will continue to contribute to the country’s tourism and hospitality industries,” AccorHotels chief operating officer for Malaysia, Indonesia and Singapore, Garth Simmons said in a recent press release.

The group is increasingly moving into secondary destinations. From 2016 to 2020, AccorHotels already confirmed to open new properties in in lesser-known tourist destinations such as Samarinda and Berau in East Kalimantan, Pangkalan Bun and Palangkaraya in Central Kalimantan, Ciawi near Bogor and Cirebon in West Java, Pekalongan in Central Java, Gresik in East Java and in Lampung in Southern Sumatra.

They are still a few gaps in the coverage of AccorHotels in Indonesia’s network of metropolises. Priority is currently given to Medan, Sumatra’s largest city where the French group has been absent for over 12 years following the end of a managing contract with a local chain. Manado city centre is another missing name. However the company is due to open its first Ibis in the heart of the city next to February. New luxury properties due to open next year include two Sofitel and five Pullman properties.

“Our development strategy includes becoming a hospitality industry player that has the largest number of human resources of almost 12,000 employees. We are currently looking for 7,000 new employees in the next five years,” said Garth Simmons.