Research &

Forecast Report

1st Half Year 2014

Bali Hotel
Property Market Report

Accelerating success.

2% as of the end of 2014. the occupancy rate of hotels in Bali was similar to Jakarta i.Research GDP has been positive suggesting that this industry is on track.000 3. Given the positive trend.10% 200.85% 2010 2011 2012 2013 2014 Tourism Contribution to GDP Percentage of GDP Source: World Travel & Tourism Council . the contribution increased slightly to 3. down from 68.154 rooms by the end of 2018.05% 150. By end of 2015.15% 250. total hotel rooms in Bali will have grown to 39. the increase was moderate to 3.95% 50.38 even though this reflected a decrease from USD134. Since 2011.000 3.4%.000 2.000 2.000 3. Nevertheless.10% and in 2014.e. From 2011 to 2012. Direct Contribution from Tourism Industry and Its Percentage of Shares Toward the GDP 350. In 2013.000 3. it slightly increased by 0.” Based on data from the World Travel & Tourism Council (WTTC). Hotel Sector “This quarter.21%.1% to reach 3. the tourism industry continues to make a relatively positive contribution to the Indonesian GDP.00% 100.01%. 57. the ADR is much better than Jakarta at USD128. the contribution of the tourism industry to Indonesia’s Ferry Salanto | Associate Director .43 at the end of last year.000 3.90% 0 2. the tourism industry in Indonesia has the potential to become one of the major revenue sources of the country.25% 300.605 rooms with Economy and Tourism additional rooms totaling 42.20% GDP Contribution (in IDR Billion) 3.

This is the first Fairmont property in Indonesia and Bali and has 120 rooms.000 with 116 rooms.Research 24 months of renovation. new hotels continue to be built in southern Bali as the moratorium was rejected by the head of the regency and 20 the city mayor.000 hotel.Star-Rated Hotel Cumulative Supply of Star-Rated Hotel Projects in Bali New hotel projects under construction seem to be speeding up their finishing progress to be open for the summer holiday 120 from June to September in an attempt to attract more European guests.Research 3 Research & Forecast Report | 1H 2015 | Hotel | Colliers International . Holiday Inn Group has opened a 171-room hotel in 4. which limits the 100 number of hotel developments in the southern part of Bali and which requires developers to build hotel projects of at least 80 4-stars with certain criteria that must comply with the regulation. the Maya Sanur Resort & Spa provides 103 rooms. However.000 total supply of this hotel category in Bali reached 11. the 2. And the 16. The Jimbaran area has a new 4-star hotel. as well as guiding investment to other regions 40 in Bali. and in particular in Sanur.000 Benoa. They officially opened the doors in November 2014.000 In 4-star rated hotels. there were 559 additional rooms 14. by the first semester of 2015. 10. With five new 4-star hotels. 0 2006 2008 2005 2009 2007 2010 2012 2014 2011 2013 2015F 3-star 4-star 5-star Source: Colliers International Indonesia . developers are pushing to meet the completion schedule. The reduction of the hotel room supply in Bali as a result of the Cumulative Supply of Star-Rated Hotel Rooms in interim closure of Hyatt Regency Sanur was counterbalanced by Bali the opening of three other 5-star hotels. was designed to tackle the southern region’s room oversupply. All in all.000 rooms. The 60 hotel moratorium in Bali that was basically issued in early 2011 at the governor level. announced their 0 2006 2008 2005 2009 2007 2010 2012 2014 2011 2013 2015F takeover of Regent Bali Sanur Hotel. Another new luxury 18.200 rooms. located in the hilly Nusa Dua area added 313 rooms. They expect to re-open in 1Q 2017 thus temporarily reducing by 389 hotel room count in Bali. quite a few new hotels opened in 1H 2015. 12. Fairmont. one of the big hotel operators. Ritz-Carlton. 3-star 4-star 5-star In early 2015. The Swiss-BelHotel Group opened two hotels in Petitenget with 111 rooms and one in Tuban providing 324 6. Hyatt Regency Sanur – Bali temporarily closed for Source: Colliers International Indonesia . Amid concerns of a hotel moratorium.000 new Watermark Hotel & Spa in Jimbaran has 143 rooms.000 in the 5-star category. Bali Paragon which provides 377 new rooms.000 Alaya Hotels & Resorts opened their second hotel in Kuta – Bali 8. who have the authority to issue hotel permits.

of rooms rating equivalent rate completion time Padma Puhu Resort 5 Not defined Ubud 149 3Q 2015 Mandapa . not only in Jakarta but also in Bali.Uluwatu 173 2017 Four Points by Sheraton 4 Upscale Class Kuta 186 3Q 2015 Novotel .Research and STR Global Tauzia Management. there will be 356 new Management built in Bali. With The amount of new budget hotel development in Bali was not as the existing POP! Hotel there will be three hotels under Tauzia high as it was last year. one of the biggest budget hotel operators. bringing the supply to 1. most probably in 2015.Ritz-Carlton Reserve 5 Luxury Class Ubud 60 3Q 2015 Alila Hotel 5 Upper Upscale Class Seminyak 240 3Q 2015 Preference Jivanara 5 Not defined Ubud 42 1Q 2016 Mandarin Oriental 5 Luxury Class Bukit Pandawa 121 4Q 2016 Nusa Dua Circle Avani 5 Not defined Nusa Dua 192 4Q 2016 Mövenpick Resort & Spa Jimbaran Bay 5 Upscale Class Jimbaran 270 2016 Yoo Le Pang Resort 5 Not defined Klungkung 115 2016 Fairmont Hotels & Resorts . which will invigorate the budget hotel market in Bali going forward. By the end of 2015.Airport 4 Upscale Class Ngurah Rai Airport 214 3Q 2015 Prama Stala Ubud 4 Not defined Ubud 145 4Q 2015 Worldhotel Balangan 4 Upper Upscale Class Balangan 85 2015 Harris Benoa 4 Upscale Class Benoa 280 2015 Park Hotel Nusa Dua 4 Upper Upscale Class Nusa Dua 151 2015 Bedrock 4 Not defined Kuta 156 2015 Indigo Hotel 4 Upscale Class Seminyak 280 2015 Meritus Bali Seminyak 4 Upper Upscale Class Seminyak 181 2016 Harris Resorts . Future Budget Hotel Development in Pipeline No.The Katamama 3 Not defined Seminyak 60 2015 Source: Colliers International Indonesia . are Zest by Swiss-Bel and Fave by Aston. Hotel Developments in Pipeline star str global projected Name of development region No.Research and STR Global 4 Research & Forecast Report | 1H 2015 | Hotel | Colliers International .765. Budget Hotel dominates the market. Other brands budget hotel rooms in Bali. of projected Name of development str global rate location rooms completion time POP! Hotel Riverview Economy Kuta 80 2015 POP! Hotel Benoa Economy Benoa 156 2015 POP! Hotel Drupadi Economy Seminyak 120 2015 Source: Colliers International Indonesia .Bali 5 Luxury Class Bukit Jimbaran 170 2016 Hyatt Regency 5 Upper Upscale Class Sanur 389 1Q 2017 Solis Capella Resorts Hotel 5 Not defined Ubud 108 2017 Preference Batu Belig 5 Not defined Badung 120 2017 Six Senses Bali 5 Luxury Class Uluwatu 97 2017 Rosewood Tanah Lot 5 Luxury Class Tanah Lot 120 2017 Waldorf Astoria Bali 5 Luxury Class Bukit Pandawa 96 2017 The Langham Place 5 Luxury Class Ungasan .Beach Cove 4 Upscale Class Jimbaran 300 2016 Cordis Resort 4 Not defined Nusa Dua 250 4Q 2018 Preference Nusa Penida 4 Not defined Nusa Penida 70 2019 Kila Infinity 8 3 Not defined Jimbaran 180 4Q 2015 Artotel 3 Not defined Sanur 400 4Q 2015 Potato Head Boutique Hotel .

impacted the tourism sector. Recently.03% YoY to 76. Geographically.200 Asia Pacific countries are in close proximity to Bali and this is further propelled by the availability of many direct international flights to and from Ngurah Rai International Airport. Bali has become popular with Chinese tourists.Research 5 Research & Forecast Report | 1H 2015 | Hotel | Colliers International . By the end of 2014. India. Bali is very popular among Australians. 2010 2015P 2012 2014 2011 2013 Source: Colliers International Indonesia .Cumulative Supply of Budget Hotel (by Number of Performance Projects) in Bali 20 Demand Bali remains the favourite tourist destination in Indonesia. China. Since 2005. opening a direct route from and to Guangzhou. Most likely. This is further supported by the leading 2. the YoY direct arrivals of 0 Australians to Bali shrank by 4. the number of foreign visitors coming to Bali contributed more than 20% of the total foreign visitors to Indonesia. 1. New Zealand. The 2010 2012 2014 2011 2015 2013 data showed that direct arrivals of Australian tourists to Bali also slightly decreased by 0. now representing 19. Canada and the Philippines.600 The top five countries contributing the highest numbers of visitors to Bali based on the most recent data include Australia. Source: Colliers International Indonesia . The “Bali Nine” execution.33% month-on-month (MoM). This airport was previously in the seventh position.Research Recently. these 1. the number of Australian tourists visiting Bali reached more than 900. Other 800 potential target markets in the future according to the Statistics Office (BPS) data are Hong Kong. China.589 guests. 400 Since 2005. Rooms) in Bali the dominance of Australians coming to Bali will be challenged by Chinese tourists. the number of foreign visitors to Bali has 0 increased and reached 40% of total visitors to Indonesia.28% of the total. By the end of May. 8 According to the tourism data from the Statistics Office.000 4 and it keeps increasing every year. The I Gusti Ngurah Rai International Airport was just honoured as the world’s third best airport for service in the category of airports with 15 to 25 million 12 passengers per year.000 national airline. Japan. the number of Chinese guests visiting Bali has kept Cumulative Supply of Budget Hotel (by Number of increasing. which raised tensions between the Indonesian and Australian governments. Malaysia and South Korea. Garuda Indonesia. 16 both for domestic and foreign guests. especially for Australian guests.

Thailand and Philippines 80% 8.Number of Visitors by Country of Origin The Comparison of Foreign Visitors Coming to Bali and Indonesia (excluding Bali) 1. 10.000 90% 800.000 40% 20% 4. the Philippines with 1.000 80% 600.000. 6 Research & Forecast Report | 1H 2015 | Hotel | Colliers International .37% growth. In terms of the growth of investment in the Travel & Tourism sector during the last five years.000. and Thailand with 0.200.000 0% 2006 2008 2005 2009 2007 2010 2012 2014 2011 2013 2. followed by Indonesia with 4. the amount of Travel & Tourism investment in Indonesia represents 29% of the total Southeast Asia total investment of USD14.000 Malaysia. Malaysia leads with 6.000 60% 6.000 100% 1.000 40% 0 30% 20% Netherlands Malaysia France Taiwan Japan China Singapore Australia Other United Kingdom Russia Germany USA South Korea 10% 0% 2011 2013 2006 2008 2005 2009 2015YTD 2007 2010 2012 2014 2010 2011 2012 2013 2014 2015YTD Bali Indonesia Source: Statistics Bureau Office (BPS).000.000.89%. Vietnam with 3.000 70% 60% 400.14%.52% growth.53%.000. Vietnam.000 50% 200. Bali Source: Ministry of Tourism and Bali Provincial Tourism Office The Comparison of Visitors to Bali and Indonesia Tourism and Travel Investment Growth in Indonesia.000.93 billion.000 -20% -40% 0 -60% 2011 2013 2006 2008 2005 2009 2015YTD 2007 2010 2012 2014 -80% Indonesia Bali Indonesia Malaysia Vietnam Source: Ministry of Tourism and Bali Provincial Tourism Office Thailand Philippines South East Asia Source: World Travel & Tourism Council Based on the World Travel & Tourism Council (WTTC) report.

Of the supply and demand in Bali during the first semester has resulting total guests. a drop of 8.Foreign Visitor Spending during Their Stay in Occupancy Southeast Asian Countries (USD billion) Average Occupancy Rate 50.00 30% 0.00 45.95% YoY. Comparison of Total Spending between Leisure and Business Purposes in Indonesia (IDR billion) 50.00 (in billion IDR) 30.00 45.8% due to the new business activities.00 80% (in USD billion) 30. domestic guests 57%. in terms of purpose of the visit. the overall AOR was According to the WTTC report.00 2011 2013 2006 2008 2005 2009 2007 2010 2012 2014 Domestic Foreign Source: World Travel & Tourism Council 7 Research & Forecast Report | 1H 2015 | Hotel | Colliers International .00 10.00 20% 2011 2013 2006 2008 2005 2009 2007 2010 2012 2014 10% Indonesia Malaysia Vietnam 0% 2013 2014 1Q 2015 2015YTD Thailand Philippines Bali South Bali Area South Central Bali Area Source: World Travel & Tourism Council Source: STR Global In terms of the amount of money that tourists spend during their stay. Indonesia is far below Thailand and Malaysia.00 90% 35. operation of the hotels mentioned above.20%.00 35. in general. the AOR for the Bali area was 65. guests coming for in a drop in the occupancy rate.00 25. which are located in Sanur. and Nusa Dua. In 2013. leisure spend three times more than guests coming for business. this is not the peak season much in Malaysia as they do in Indonesia.00 100% 40.00 15. most likely because. Generally.00 70% 25.00 5.00 20.95% and moved upward in 2014 to 68. Kuta.00 40.00 0. in Bali. The disparity in the growth of hotel spend three times more than foreign guests on average. leisure activities take longer than The AOR in South Bali slightly decreased to 56. During 1H 2015. in Indonesia.00 40% 5.00 50% 10.00 60% 20. Jimbaran.00 15. Foreign The overall Average Occupancy Rate (AOR) for the first six guests spend almost four times as much in Thailand and twice as months of 2015 weakened.

00 USD 60.00 USD 80. 8 Research & Forecast Report | 1H 2015 | Hotel | Colliers International .07 reflecting a 4.00 USD 0.00 USD 20.00 USD 180.00 USD 160.43. The ADR in 2013 was USD144. the ADR was USD124.12% drop YoY.00 USD 100. In the first semester of 2015.Average Daily Rate Average Daily Rate USD 200.9% to USD134.33 and dropped in 2014 by 6.00 USD 140.00 USD 40.00 USD 120.00 2013 2014 1Q 2015 2015YTD Bali South Bali Area South Central Bali Area Source: STR Global The Average Daily Rate (ADR) for hotels in Bali has been decreasing in the last three years.

valuation and appraisal services.31 $2. Colliers professionals provide a full range of services to real estate 6 continents United States: 140 Canada: 31 Latin America: 24 Asia: 39 ANZ: 160 EMEA: 108 Colliers International Indonesia World Trade Centre 10th & 14th Floors Jalan Jenderal Sudirman Kav. With an enterprising culture and significant insider ownership. (NASDAQ: CIGI. . and customized research and thought leadership. 29 . Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years. consulting.Salanto@colliers. While every reasonable effort has been made to ensure its accuracy.3 Jakarta 12920 Indonesia billion in annual revenue TEL 62 21 3043 6888 158 million square meters managed 16. Services include brokerage. property and asset management. The information contained herein has been obtained from sources deemed reliable. more than any other real estate services firm.300 professionals and staff About Colliers International Group Inc. investment sales and capital markets. project management and workplace solutions. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. owners and investors worldwide.300 professionals operating from 502 offices in 67 countries. global corporate Copyright © 2013 Colliers International. Accelerating success. we cannot guarantee it. colliers. Colliers International Group Inc. No responsibility is assumed for any inaccuracies. TSX: CIG) is a global leader in commercial real estate services with more than 16.502 offices in Primary Authors: Ferry Salanto 67 countries on Associate Director | Jakarta 62 21 3043 6730 Ferry.