Hotelier Editon 29 2017

HOT | REPORTS
Hotel & Branded Residences
Bali
Hotel Performance 2011 – 2016 (IDR)
RevPAR suffering a 6% fall on the back of an 11% fall in
2015. Although arrivals to the island have been steadily
increasing this year, the shift of nationality and weaker
spending power has forced hotels in this segment to
rethink their pricing strategy. With the huge luxury resort
pipeline, it is believed that it will take many years for the
Luxury segment to rebound from this downfall and it is
arguable that it will also require a rethink of the central
government’s quantity over quality tourism strategy.
Luxury 2011 – 2016 (IDR)
Source : BHA and Horwath HTL
The above graph highlights performance across Bali since
2011 with some telling results to YE 2016:
• IDR ADR increased y-o-y until 2016 (whereas USD ADR
has decreased y-o-y since 2012);
• occupancy has fluctuated from a peak in 2011 to a low
year-end 2015; and most importantly;
• IDR RevPAR increased from 2011 to 215 before dipping
slightly in 2016 (whereas USD RevPAR has decreased over
the same period, remaining flat in 2016).
There are some small improvements YTD September 2016
however:
2015 2016
Occupancy -5% pts -4% pts
ADR (IDR) 8% -6%
ADR (USD) -5% -5%
RevPAR (IDR) 1% -1%
RevPAR (USD) -11% 0%
Occupancy has been solid all year, as shown in the 4%
points increase year-end 2016. ADR in IDR and USD tells a
contrary story, increasing 8% and falling 5% respectively.
This, of course plays into RevPAR which also shows
opposite results, up in IDR and down significantly in USD.
Performance by segment
Source : BHA and Horwath HTL
Luxury 2015 2016
Occupancy -6% pts -1% pts
ADR (IDR) 15% -5%
ADR (USD) -1% -4%
RevPAR (IDR) 4% -7%
RevPAR (USD) -11% -6%
Upper Upscale (USD 151 – 349): This segment shows
more promise as 2016 occupancy performance shows a
5% increase. ADR was sacrificed to keep occupancy rate
buoyant amidst the pressure of new supply and changing
arrivals demographics in 2016. With an estimated 74 new
hotels opening in the next four years, arrivals growth will
need to continue growing at similar rates to the 23% y-o-y
figure if this segment is to balance occupancy and ADR
with a resultant increase in RevPAR.
Luxury (> USD 350): On the back of solid performance
improvements recorded between 2011 and 2014, the
last 2 years have been gloomy in the Luxury segment. All
performance matrices are showing a slip in 2016, with
HOTELIER INDONESIA | 29th | Vol 13 | 2017 | www.hotelier-indonesia.com
50 www.horwathhtl.com
www.c9hotelworks.com