INDONESIA’S hospitality sector will see a streamlining in the number of hotel brands, especially in the budget segment, as land and construction prices increase in the next decade.

While Indonesia is experiencing a middle class boom and the number of domestic travel reached 245 million trips last year, hotel room supply has outstripped traveller numbers in pace of growth and travellers are also now more cost-conscious, putting downward pressure on rate growth.

Speaking during Hospitality Investment World Indonesia in Jakarta yesterday, Yanti Sukamdani, chairman of Indonesia Hotel and Restaurant Association, said: “There has been massive hotel development in the country in the last few years, especially in the economy and midscale categories, and of late, the upscale and luxury segments in major destinations as demand is there.

“However, hotel rates are considerably low compared to the neighbouring countries, even Vietnam.”

Marc Steinmeyer, president director, Tauzia Hotel Management, said: “With such a huge population there is actually room for every tier of hotel in Indonesia, but they cannot be all (concentrated) in one place.

“The key is to have the right allocation of budget, economy, midscale and upscale in different locations…In the last three years there has been a trend that everyone wants to build budget properties and everybody wants to build at the same place. ”

Presently many new operators are coming onto the market and there are about 60 brands in Indonesia. Steinmeyer predicted that there would be “a natural cleaning up” in the market and only about 10 brands left represented within a decade or so.

He said the challenge for budget hotels is the increasing land cost especially in major cities like Jakarta and Surabaya. “Cost of construction is increasing more and more, and on the other hand, room rates are not increasing. Honestly, Indonesia has the best quality of hotel for the cheapest in Asia.

Norbert Vas, vice president sales & marketing, Archipelago International Indonesia, pointed out that investors build budget properties on lands they have had for many years that are too small for bigger hotels or apartments.

PHILIPPINE Airlines (PAL) and Etihad Airways have sealed a landmark MoU that will see the national flag carriers of the Philippines and UAE collaborate on codesharing, frequent flyer reciprocity, airport lounge access, air pass agreements and cargo cooperation.

Etihad president and CEO, James Hogan, noted: “Etihad Airways and PAL have a history of successful cooperation on the Abu Dhabi-Manila route.”

PAL president and COO, Ramon S Ang, said: “This relationship will go a long way in providing our combined customer base a much more enhanced set of travel options. This also comes at an opportune time for PAL which is in the thick of a fleet modernisation and expansion programme that will see the flag carrier pushing further not only into the Middle East but also on other parts of the globe using a modern fleet of aircraft.”

Etihad operates twice-daily Boeing 777-300ER flights between Abu Dhabi and Manila, which was its second busiest route in 2013.

Both Hogan and Ang expressed hopes that a closer partnership between the two airlines would make them the first choice for the more than 700,000 Filipinos who live in the UAE and make up a substantial amount of traffic on the Abu Dhabi-Manila route.

More tourists to the Philippines from the Middle East and Europe can also be expected. Said Hogan: “The Philippines is one of the world’s best kept secrets with great appeal to travellers from overseas. We are committed to working with the PAL team and the Philippines tourism industry to bring more overseas visitors to their country and to increase the economic benefits of tourism.”

BEST Western International has opened Best Western Premier The Haven, Ipoh, one of the first properties in Malaysia that uses 100 per cent sustainable energy.

The resort offers 100 rooms and suites all equipped with flat-screen TVs and free Wi-Fi.

Guests can also make use of other amenities such as a four-level lagoon-style swimming pool, tropical gardens, a jogging track, barbecue and picnic areas, a gymnasium, badminton and tennis courts, a children’s playground, café and restaurant.

Best Western Premier The Haven, Ipoh boasts environmental credentials such as 100 per cent renewable energy harnessed from the power of the wind and sun, and harvests rainwater for use elsewhere in the property.

“We are delighted to have been entrusted with the running of this stunning, environmentally friendly resort,” said Glenn de Souza, vice president of international operations for Asia & Middle East.

The hotel is Best Western’s fourth hotel in Malaysia, following existing properties in Kuala Lumpur, Kota Kinabalu and Sandakan.

THE landmark Traders Hotel, Yangon was today relaunched as the Sule Shangri-La, Yangon after an extensive two-and-a-half years renovation.

The 484-room hotel on Sule Pagoda Road evokes the country’s colonial past with a classic interior comprised of imposing white columns and a grand staircase leading to an open balcony, a tiered crystal chandelier and a wall mural and panel details with peacock motifs. It also features specially commissioned works by local artists while staff are garbed in the traditional longyi.

Sule Shangri-La, Yangon offers 484 remodelled guestrooms with views of the city, river or Shwedagon Pagoda as well as free Wi-Fi. Three suites, including the city’s largest presidential suite, range from 66 to 189m2.

The Horizon Club Lounge has been relocated to level 21 and expanded for extra space and two private meeting rooms. Guests enjoy personal check-in and late check-out, free beverages and refreshments all day, a dedicated concierge and Wi-Fi access. Further benefits extend to free breakfast, in-room wine and snacks on arrival, suit pressing and daily fruits.

Dining options available at the hotel include the signature Summer Palace that serves Cantonese dim sum and Chinese dishes and comes with six private dining rooms; The Gallery Bar designed to resemble a public drinking house from the British era; Café Sule for international flavours and Asian dishes; the Peacock Lounge, an informal meeting ground for catch-ups; and the Gourmet Shop serving freshly baked goods, snacks and beverages.

All of the hotel’s F&B outlets are the first in Myanmar to be awarded the Hazard Analysis and Critical Control Point System certification for world-class standards of food management and hygiene.

Other amenities offered within the hotel include the Health Club comprising an outdoor pool, fitness equipment, sauna, steam and massage rooms.

Meeting spaces occupy three levels of the hotel and were refurbished in a modern palette with gold accents.

For recreational pursuits the Health Club, which is bathed in natural light and overlooks the outdoor pool, offers an expanded space of over 850 square-metres of fitness equipment, sauna, steam and massage rooms. The hotel’s meeting spaces – regular hosts of delegations and dignitaries – span three levels at Sule Shangri-La, Yangon and were refurbished in a modern palette with gold accents.

In commemoration of the rebranding, the hotel has rolled out a Celebration Package with prices beginning at US$215 a night, not including taxes and service charges.

For guests who stay at least two nights in a Deluxe room between now and July 31, a free one-way airport transfer and US$40 in hotel credit will be thrown in. Golden Circle members can also earn double GC Award Points.

AEROWISATA Hotels & Resorts is embarking on an extensive exercise to rebrand, reposition and expand its portfolio of hotels to sharpen its edge in an increasingly competitive industry, 40 years after the company opened its first hotel Sanur Beach Hotel.

With the new brand statement of Authentic Indonesia Hospitality, the hotel group has introduced three brands: upscale Prama, mid-scale Kila and economy brand, Asana.

The company’s seven operational properties have been regrouped and rebranded as Prama Sanur Beach Bali, Prama Grand Preanger Bandung, Kila Senggigi Beach Lombok, Grand Artos Magelang, Asana Kawanua Jakarta, Asana Agung Putra Bali and Asana Biak Papua.

Speaking at the launch of the new brands in Jakarta on April 23, Francis Dehnhardt, executive vice president of hotels and resorts for parent company Aerowisata, said: “With the increasingly competitive business environment and its continuous changes, we need to improve our competitive edge with product innovation, organisation and human resources development.”

Aerowisata Hotels & Resorts’ properties are slated for renovation to meet the new criteria and brand identities. “Those ‘elderly’ properties will need to undergo major renovation, but we will do that in stages so that the hotels can continue operational without disrupting the guests,” said Dehnhardt, citing Prama Sanur Beach Bali as one such property. Meanwhile, new properties may only need superficial changes such as staff uniforms and collaterals.

On the software side, human resources training will be conducted at all properties. Dehnhardt added that the entire transformation will take complete between 12 months and 24 months.

In terms of expansion, Hera Adiwikarta, vice president sales & marketing, Aerowisata Hotels & Resorts said the group would open five hotels by end-2015, adding 868 rooms to the existing 1,188 rooms.

The group aims to operate 35 hotels by 2017.

INTERCONTINENTAL Hotels Group (IHG) has opened the 442-room Holiday Inn Express Singapore Clarke Quay in partnership with RB Capital Hotels, the hotel arm of RB Capital Group.

The hotel is located within Singapore’s vibrant entertainment district of Clarke Quay, 20 minutes from Singapore Changi Airport and close to the country’s major museums.

Guests can expect free Wi-Fi, breakfast or a grab-and-go option, a self-service business centre and laundry room, a 24-hour fitness room and a rooftop swimming pool.

The opening of Holiday Inn Express Singapore Clarke Quay last month follows the launch of Holiday Inn Express in Orchard Road last July (TTG Asia e-Daily, July 17, 2013) and Semarang (TTG Asia e-Daily, November 11, 2013), Jakarta (TTG Asia e-Daily, January 21, 2014) and Bali (TTG Asia e-Daily, January 27, 2014).

Clarence Tan, COO, South East Asia & Resorts, IHG, said: “Holiday Inn Express is one of the fastest growing hotel brands in the world and this is our second Holiday Inn Express hotel to open in Singapore in under a year. In the last eight months alone, the brand debuted in both Indonesia and Singapore and across the two countries, we opened five Holiday Inn Express hotels in that time.

“We know that there is a demand for select-service hotel brands in the region and Holiday Inn Express is here to meet that. With 19 Holiday Inn Express hotels due to open across South East Asia alone over the next five years, we’re confident this is just the beginning of a successful growth period for the brand.”

Holiday Inn Express Singapore Clarke Quay has rolled out a special opening rate from S$180++ per night, including free Wi-Fi access and breakfast for two, for stays from now until July 31.