Indonesia's Luxury Hotel Occupancy Declines as Mid-Range Hotels Thrive
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PublishedJan 6
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Indonesia's Luxury Hotel Occupancy Declines as Mid-Range Hotels Thrive

AnalisaHub Editorial·January 6, 2026
Executive Summary
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Executive Summary

Key insights and market outlook

Indonesia's hotel occupancy rates in November 2025 showed mixed performance across different hotel categories. Luxury hotels (5-star) experienced the largest decline at 2.72% year-on-year, while mid-range hotels (3-star) showed resilience with only a 0.98% decline. Month-on-month, most hotel categories saw increased occupancy except for luxury and non-starred hotels. The data indicates a shift in tourist preferences towards mid-range accommodations.

Full Analysis
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Deep Dive Analysis

Indonesia's Hotel Industry Shows Diverging Trends in November 2025

Occupancy Rates Across Hotel Categories

The Indonesian hotel industry displayed varied performance across different categories in November 2025. According to data from the Central Statistics Agency (BPS), the highest occupancy rate was recorded by 4-star hotels at 58.66%. In contrast, non-starred hotels had the lowest occupancy rate at 24.98%.

Year-on-Year Analysis

Compared to November 2024, all hotel categories experienced a decline in occupancy rates. The most significant drop was observed in 5-star luxury hotels, which fell by 2.72 percentage points. This was followed by 1-star hotels, which decreased by 2.56 percentage points. The most resilient category was 3-star hotels, showing the smallest decline of 0.98 percentage points.

Month-on-Month Trends

When comparing October to November 2025, most hotel categories showed an increase in occupancy rates. The largest month-on-month increase was seen in 3-star hotels, rising by 1.72 percentage points, closely followed by 4-star hotels with a 1.71 percentage point increase. Conversely, 5-star hotels and non-starred hotels experienced declines of 1.48 and 0.27 percentage points, respectively.

Shift in Tourist Preferences

The data suggests a clear trend of tourists preferring mid-range accommodations over both luxury and budget options. This preference is evident in the relatively better performance of 3-star and 4-star hotels compared to other categories. The observed trend indicates a strategic opportunity for mid-range hotels to capitalize on this growing demand.

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Story Info

Published
1 week ago
Read Time
9 min
Sources
1 verified

Topics Covered

Hotel Industry PerformanceTourism TrendsAccommodation Preferences

Key Events

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Hotel Occupancy Rate Changes

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Shift in Tourist Preferences

Timeline from 1 verified sources