Hilton, a major international hotel and hospitality group, is making its first foray into Batam with the signing of Hilton Garden Inn Batam City Centre. This move marks the latest addition to Hilton’s growing presence in Indonesia, where it manages 18 hotel properties and has signed on to oversee 16 more in the coming years.
The Hilton Garden Inn Batam City Centre is expected to welcome its first guests in 2028, and the property will be developed by PT Sabang Raya Investama. The hotel is situated near Batam’s ferry terminals that serve the ferry services connecting to Singapore and Malaysia, as well as Hang Nadim International Airport.
Strategically located within Batam’s core Central Business District, the hotel will enjoy convenient access to the island’s major commercial, retail and administrative hubs, including Lubuk Baja and Batam Centre. Hilton Garden Inn Batam City Centre will feature 199 guest rooms, including family rooms and suites, alongside an all-day dining restaurant, bar, fitness centre, swimming pool and a spacious meeting and event space spanning over 9,688 sq ft.
Maria Ariizumi, vice president of development in South East Asia & Australasia at Hilton, says “The signing of Hilton Garden Inn Batam City Centre marks our debut in Batam and reinforces our commitment to growing in high-potential destinations across Indonesia.”
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Batam’s Growing Appeal
Batam is evolving as a business and leisure destination, supported by its proximity to Singapore and Malaysia and stronger regional connectivity. The upcoming hotel is also well positioned to capture demand from corporate and leisure travellers, buoyed by corporate events and conferences as well as golf, wellness and medical-related travel.
Sukirman Djohan, President Director at PT. Sabang Raya Investama says partnering with an international hospitality brand such as Hilton represents an exciting milestone for the developer. “We believe Hilton Garden Inn Batam City Centre will cater to the needs of modern business and leisure travellers while supporting Batam’s continued growth as a regional destination,” he adds.
Batam is an increasingly important business and leisure destination, boosted by strong industrial and logistics sectors, MICE activity, and rising leisure travel demand. Its tourism ministry noted a recent shift in visitor profile, from predominantly male golfers to more families visiting the island. From January to July 2025, data from Statistics Indonesia (BPS) showed a total of 861,712 foreign tourist visitors.
In July 2026, the island welcomed 143,523 foreign visitors, a 16.19% y-o-y increase compared to the 123,526 visits recorded in July 2025. Premium as well as four- and five-star hotels in Batam City saw a 60% jump in average occupancy rate in June this year, which was up 4.58 points from the 55.19% rate recorded in May 2026, according to Batam City Central statistics.
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Economic Growth Accelerates
Over the past decade or so, Batam has been evolving beyond being a popular short-haul destination for visitors from Singapore and Malaysia. Its regional economy has recorded stellar results, expanding by 7.28% y-o-y in 2Q 2026 and outpacing Indonesia’s overall economic growth in that quarter (5.29% y-o-y) as well as the 6.99% growth rate recorded by the broader Riau Islands’ economy.
The economic appeal of Batam has been aided by the expansion of the Batam Free Trade Zone (FTZ) from eight to 22 islands, which has enabled it to capture spillover manufacturing and warehousing demand from Singapore. The FTZ means that companies enjoy tax-exempt raw materials and machinery imports, and do not have to pay export duty for shipping their products.
Batam is also pulling out all stops to enhance its connectivity to its neighbours. For the Hang Nadim International Airport’s Terminal 2 expansion, it is working with a high-profile consortium that includes South Korea’s Incheon International Airport Corporation. Targeting a 2026 completion, the new terminal will bring total passenger handling capacity to 9.6 million annually.
They are working to complete the terminal expansion by the end of 2026.
