OYO plans to double premium hotel numbers in Indonesia as the industry shows signs of significant growth in 2023  

OYO plans to double premium hotel numbers in Indonesia as the industry shows signs of significant growth in 2023  

We are planning to double our premium segment hotel count in Indonesia in 2023, with hotel brands such as Townhouse Oak and Collection O which meet premium hotel criteria such as design, service quality and high level of safety and health standards.   

Most of these hotels are equipped with key amenities such as bigger room size, swimming pool, restaurants, and in-room facilities like hair dryer and mini fridge etc., which makes them popular amongst tourists looking for comfortable stays.  

In Indonesia, the demand for premium accommodation options is expected to grow significantly in 2023. As of December, 2022 the country saw around 633 million to 703 million domestic tourist trips in 2022. The Ministry of Tourism and Creative Economy is targeting 3.5 – 7.4 million international tourist arrivals and 1.2 – 1.4 billion domestic tourist movements or trips in 2023.  

A report by property consultancy firm Jones Lang LaSalle (JLL) also says that green shoots are emerging for the hotel sector with occupancy levels expected to reach above 50 percent this year. It also predicts an investment of $300 million in 2023 in this sector, which is the highest since 2013. We plan to play the role of a catalyst in this growth with a three-pronged strategy – maximising local market potential, technological innovation to address market pain points and strong collaboration with industry stakeholders.  

We have intensified our efforts to identify premium properties across all key regions and efforts are in full steam to onboard and equip them with latest technological tools, increase their visibility, and in turn improve their revenue. Its revamped technological product, like Co-OYO is now equipped to help patrons design and run their own promotional offers to increase occupancy and support revenue maximization. The AI based self-onboarding tool OYO 360 provides a simple two-click platform to enroll patrons on its platform. With a simple review, in a single click – the property will be live in just 30 minutes across all platforms.  

Elaborating more on the expansion plan, Ankit Tandon, Global CBO and CEO, Southeast Asia and Middle East said “Indonesia is one of the most mature markets for OYO in terms of scale and unit economics. Our focus on expanding premium hotel portfolio is in line with government’s plans to strengthen hotel industry to meet the requirements of the growing number of inbound and corporate tourists looking for well-priced mid segment and premium hotels. We are targeting a mix of business and leisure destination such as Jabodebek, Java and Bali, Sumatra, Kalimantan, and Sulawesi.” 

Expressing satisfaction over the partnership with OYO, Pak Andi, Property Owner, Collection O 295 Grha Ciumbuleuit, Bandung said “For over 3 years, OYO has been very helpful in managing the hotel’s daily operations, from maximizing the market reach to optimizing the hotel performance. The technology innovation that OYO offers are very useful and easy to understand.” 

Collection O 28 Urban Town, Karawang spokesperson added “We have been with OYO since 2020 and happy with the significant increase in our occupancy”. 

Customers choose our platform for many reasons, including accessibility to hotels at competitive prices, quality accommodation, ease of use of its app, personalization, and flexibility  of our platform. They can also resolve their queries quickly with our 24*7 chatbot – Yo! Chat.