Introduction/Main Objectives: One of the main attributes of hotel selection and customer satisfaction is its location. Background Problems: Strategic location leads to higher demand for accommodation. Accommodation demand is reflected in hotel occupancy levels, which indicate the percentage of reserved rooms at a specific period. Novelty: This study aims to investigate the effect of spatial location on hotel occupancy rates by analyzing data collected in online hotel reservation applications. A study related to the effects of location and hotel occupancy has never been conducted in Indonesia. Research Methods: We use data from hotels located in the province of Yogyakarta, which contains 245 hotels spread over three regencies/cities, namely Yogyakarta City, Sleman Regency, and Bantul Regency. We conducted a spatial regression analysis, namely the Spatial Error Model (SEM), with a spatial weight matrix using a radius of 3.2 km. Finding/Results: We found that spatial locations affect the occupancy rates of hotels based on the online hotel reservation application that we observed. These spatial locations include the distance from the hotel to the airport, the distance from the hotel to the bus stop, and the number of nearby restaurants, offices, and hotels.
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