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INTERCONTINENTAL Hotels Group (IHG) continues to strengthen its presence in Indonesia as travel demand increases and Indonesia attempts to strengthen its position as a global tourism destination. With nearly 50 hotels in operation and in the development pipeline, encompassing nearly 10,000 rooms, IHG is expanding its hotel network in both emerging and emerging destinations.
IHSG Hotels & Resorts (IHG) will add 13 new hotels with 2,494 rooms in its expansion pipeline in Indonesia. The network expansion will target Bali’s main and super priority tourist destinations, such as Lombok.
According to Anil Pathak, IHG Regional General Manager Indonesia, in IHG Hotels & Resorts Media Gathering on Wednesday, (11/04), 2026 in Jakarta, said that currently, IHG operates 35 hotels with a total of 7,096 rooms in Indonesia. The hotel network of various brands in the IHG ecosystem covers 11 tourist destinations, namely Jakarta, Bali, Bandung, Surabaya, Semarang, Batam, Bintan, Lampung, Labuan Bajo, Cikarang and South Kalimantan.
IHG intends to expand its network to Medan, Yogyakarta, Puncak and Lombok. “We see increasing attraction in five super priority destinations and their cities as entry points, including Medan, Yogyakarta, Lombok, Manado and Labuan Bajo, as well as new and developing destinations such as Puncak, Bogor, Lampung and Belitung,” he said.
However, when asked about IHG’s expansion, Pathak immediately answered here that we see the hotel industry is also showing positive developments. Hotels in Indonesia recorded an average daily rate (ADR) of US$78, up 12.3% compared to the previous year. Revenue per available room (RevPAR) reached US$47, an increase of 9.8%, with a hotel occupancy rate of around 60%.
“Well, this indicator shows that there are opportunities for the industry as travel demand increases and tourists’ interest in quality stay experiences that offer more meaningful experiences,” he said.
Meanwhile, Managing Director, Southeast Asia & Korea, IHG, Vivek Bhalla, added that the expansion plan is supported by opportunities for tourism growth in the Asia-Pacific region, which is reflected in the number of visits. As much as 91% of the growth in tourist visits to this region came from travel between countries within the Asia Pacific region. For IHG, 5 out of 10 top tourists in the region come from Australia, Malaysia, Japan, Singapore and South Korea.
“Meanwhile, to support Indonesian tourism, IHSG Hotels & Resorts will add 13 new hotels with 2,494 rooms in its expansion pipeline in Indonesia. This network expansion will target Bali’s main and super priority tourist destinations, such as Lombok,” he said.
He added that currently, IHG operates 35 hotels with a total of 7,096 rooms in Indonesia. The hotel network of various brands in the IHG ecosystem covers 11 tourist destinations, namely Jakarta, Bali, Bandung, Surabaya, Semarang, Batam, Bintan, Lampung, Labuan Bajo, Cikarang and South Kalimantan.
The reason for IHG’s expansion into eastern Indonesia is that, as we believe, tourism growth is now increasingly moving to the Eastern region, and Indonesia has various potentials to benefit from this change. Exceptional natural and cultural diversity, ever-improving connectivity, and one of the largest domestic travel markets in the region provide a strong foundation for long-term growth.
“Domestic travel is the main driver of Indonesia’s tourism industry, while demand from foreign tourists also continues to increase. With increasingly easy access to various destinations, there is a big opportunity to encourage tourists to explore more parts of Indonesia and expand the benefits of tourism to various regions,” he noted.
Expanding Networks in Developing Destinations and New Destinations
IHG’s expansion is supported by a cluster and destination-based approach, by building a portfolio of complementary brands in key markets. This approach enables a larger operational scale, increases operational efficiency, and strengthens long-term partnerships with hotel owners, while supporting the local tourism ecosystem.
He also explained that Bali will continue to be one of the leading tourism destinations in Asia, but some of the biggest growth opportunities are also in developing destinations. We see growing attraction in the five Super Priority Destinations and their gateway cities, including Medan, Yogyakarta, Lombok, Manado and Labuan Bajo, as well as new and developing destinations such as Puncak, Bogor, Lampung and Belitung.
“We want to grow with Indonesia by presenting the right brands and experiences in destinations that tourists are increasingly interested in exploring. However, the most interesting thing for me is the large opportunity for tourism growth in Indonesia in the future. We are not just opening hotels in Indonesia,” he affirmed.
He added, together with hotel owners and partners, we are helping to build hotel infrastructure to support the next chapter of Indonesia’s tourism growth. There are still many opportunities ahead, and we are excited to be part of this journey.
Vivek Bhalla concluded that the most interesting thing for me was the large opportunity for tourism growth in Indonesia in the future. We don’t just open hotels in Indonesia. Together with hotel owners and partners, we are helping to build hotel infrastructure to support the next chapter of Indonesia’s tourism growth. There are still many opportunities ahead, and we are excited to be a part of this journey.” [traveltext.id]
