HVS Singapore is pleased to publish the fifth edition of the Indonesia Hotel Watch (IHW) 2017. This publication provides an insight into the top ten hotel markets in Indonesia, the world's largest archipelago. Growth in the global economy is likely to be uneven and imbalanced over the next few years, as the world continues to struggle to meet its sustainable development goals. Geopolitical risks as well as policy and regulatory decisions will largely determine economic outcomes and the global operating environment. Economists expect emerging-market regions to continue outperforming developed-world markets. However, the overall outlook is somewhat subdued, as growth drivers rebalance short-term growth and longterm sustainability.

Through this IHW 2017 publication, we present detailed research and unbiased opinions to encourage data-driven fundamental analysis to take lead in the decision-making process. We have analysed the overall hospitality landscape in Indonesia, highlighting the demand and supply dynamics and future growth potential. Given the strong growing domestic middle class, HVS has decided to provide greater insight on its growth in Indonesia. 2017 started on a sluggish note but is expected to improve following a strong 5% GDP growth in 2Q2017. Of the ten markets we track, five markets have positive RevPAR change from 2015 to 2016. In addition, three markets are forecasted to have positive RevPAR growth for 3-year CAGR. Special thanks to our Singapore and India teams for their efforts in the preparation of this publication.

About HVS

HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.

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