Jakarta hotel supply to grow at an annual rate of 2.6% until 2025 | Real Estate Asia
, Indonesia

Jakarta hotel supply to grow at an annual rate of 2.6% until 2025

Over 1,700 rooms will be added in 2023.

Jakarta’s hotel pipeline is expected to ramp up in 2023, with JLL analysts expecting a total of 1,706 rooms to enter the market this year, representing a 2.7% y-o-y growth. Between 2023 and 2025, hotel supply is projected to grow at an annual rate of 2.6%.

According to JLL, the majority of new supply that is slated to open in 2023–2024 is in the Midscale to Upscale segment, and 41% of the supply comprises serviced apartments from brands such as Ascott, Somerset, Citadines and PARKROYAL.

Here’s more from JLL:

Jakarta hotel markets across all segments have seen a significant growth in trading performance in 2023, which has not only recovered but exceeded pre-pandemic levels.

Compared to 2019, both the Luxury and Upscale markets grew in revenue per available room (RevPAR) as at YTD June 2023, by 10% and 27% respectively. This was mainly attributed to an uptick in ADR after all pandemic restrictions were lifted in December 2022, which reignited corporate and leisure demand. Domestic demand has remained robust as well, supporting overall trading performance.

Outlook: A full-fledged recovery of the market is anticipated

The 2024 Indonesian general election should further boost corporate demand in the near term as more meetings are expected to be held in the capital. Hence, we foresee an uptick in occupancy leading up to the election as hotels capitalise on the spillover demand from political activities.

Looking ahead, we expect the trading performance to continue improving on the back of an expected ramping up of Mainland Chinese outbound tourism. Trading performance is expected to maintain an elevated level in 2023 and early 2024.

Note: Jakarta Hotels refers to Jakarta's luxury hotel market.


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