INDONESIA-BASED property developer Surya Semesta Internusa (SSIA), the owner of Gran Melia hotels, is set to make its foray into the economy segment when its first BatiQa hotel opens in 2013.
According to Sami Miettinen, Surya Internusa Hotels managing director, SSIA aims to launch 35 to 40 budget hotels across the country within the next five years.
“Each hotel will have 100 to 125 rooms, a single F&B outlet as well as meeting rooms,” he said. Rates are expected to range from US$40 to US$50 a night, placing it at the higher end of the budget spectrum.
BatiQa will be targeted primarily at domestic business travellers, added Miettinen. “We will leverage on our close ties with the local industry to fill rooms.”
Despite the immense potential of the budget hotel segment in Indonesia, Miettinen conceded that operators still face numerous challenges. “Competition is rife with both local and international players trying to enter this space. In addition, it is difficult to ensure service consistency given the geographic spread of Indonesia. It’s easy to build a hotel, but difficult to stay ahead of the game.”
Five hotels have begun construction in Jakarta, Palembang in South Sumatra, Pekanbaru in Riau, Karawang in West Java and Surabaya in East Java. These five properties are slated to open in 2013.
SSIA is currently awaiting approval from the government to develop budget hotels in Yogyakarta and Makassar.
