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Library's collection Library's IT development CancelIndonesia is predicted to be a big economy with a bright future. The country is highly promising due to its large market, big population, rich natural resources, and high number of available labor. The Indonesian archipelago has Java Island as its centre of economic growth. Thus many of Indonesia’s entrepreneurs open their businesses in this island. Many of these businesses are in Surabaya, Indonesia’s second largest metropolitan city located in East Java. These entrepreneurs will have to travel to and from Surabaya, staying in the city’s hotels; contributing to the rise of the city’s hotel industry. This study conducts an investigation on whether Indonesian middle class entrepreneurs is a market niche—their needs, wants and preferences, as well as their attractiveness as budget hotels’ customer segment in Surabaya, Indonesia.