Executive Summary

Key insights and market outlook

The Indonesian hotel industry is expected to remain under pressure in 2026, with occupancy rates still below pre-pandemic levels. According to data from the Central Statistics Agency (BPS), the national hotel occupancy rate declined by 4.43% YoY as of October 2025, with an average occupancy rate of 48.07% for the year, lower than the 2024 average of 52.50%.

Full Analysis

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Deep Dive Analysis

Indonesian Hotel Industry Faces Ongoing Challenges

Occupancy Rates Remain Low

The Indonesian hotel industry is bracing for another challenging year in 2026, as occupancy rates continue to struggle. Data from the Central Statistics Agency (BPS) reveals a 4.43% YoY decline in national hotel occupancy rates as of October 2025. This translates to an!average occupancy rate of 48.07% for the year, which is lower than the 2024 average of 52.50%.

Impact of Government Spending Restrictions

Sekretaris Jenderal Perhimpunan Hotel dan Restoran Indonesia (PHRI), Maulana Yusran, attributes the sluggish recovery to ongoing government spending restrictions, which have historically been a key driver of demand. With these restrictions in place, the industry is likely to face sustained pressure.

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