Project Scope

Our office was engaged by Premier Inn, a leading UK-based hotel chain, to develop a comprehensive expansion strategy and business plan for their entry and growth in the Indonesian market. The primary objective was to assess market viability, identify strategic locations, and formulate a scalable business model that aligns with Premier Inn’s brand values and operational standards.

The project commenced with an in-depth market analysis of Indonesia’s hospitality sector. We evaluated tourism trends, economic indicators, and regulatory environments across key regions. This included assessing inbound and domestic travel statistics, seasonality patterns, and the competitive landscape of budget and mid-scale accommodations. Our analysis identified emerging markets and untapped locations with high growth potential.

We conducted a thorough feasibility study to evaluate potential sites for new hotel developments. This involved site inspections, accessibility assessments, and analyses of local demand drivers such as business districts, tourist attractions, and infrastructure developments. We also reviewed zoning regulations, land acquisition processes, and compliance requirements to ensure legal feasibility.

Our team developed a strategic expansion roadmap outlining the phased rollout of new properties over a five-year period. We prioritized locations based on market potential, investment requirements, and alignment with Premier Inn’s target customer segments. The plan included recommendations for both greenfield developments and conversions of existing properties to expedite market entry.

The financial modeling component involved constructing detailed projections of revenues, operating costs, capital expenditures, and cash flows for each proposed location. Key financial metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), and payback period were calculated to assess investment attractiveness. Sensitivity analyses were performed to evaluate the impact of variables like occupancy rates, average daily rates, and cost fluctuations on profitability.

We explored various market entry strategies, including joint ventures, franchising, and management contracts. Potential local partners were identified, and partnership models were evaluated based on strategic fit, operational control, and risk-sharing considerations. We also examined regulatory incentives, such as tax benefits and investment allowances, offered by Indonesian authorities to foreign investors.

An operational plan was developed to address staffing, supply chain management, and compliance with local labor laws and hospitality regulations. We proposed standard operating procedures tailored to the Indonesian context while maintaining Premier Inn’s global brand standards and customer service ethos.

Finally, we compiled a comprehensive business plan presenting our findings, strategic recommendations, and actionable steps for implementation. The plan provided Premier Inn with a clear roadmap for successful expansion into Indonesia, highlighting opportunities for market penetration, revenue growth, and brand establishment.

Overall, the expansion strategy and business plan equipped Premier Inn with the necessary insights and tools to make informed decisions regarding their investment in Indonesia. The project set the foundation for sustainable growth in a promising market, aligning with the company’s long-term strategic objectives and contributing to the diversification of their international portfolio.

Project Location

Several locations, Indonesia