Over 1,600 rooms to enter Jakarta’s hotel market in 2024

This will cause the city’s hotel supply to grow by 2.9%.

Jakarta had a total of 63,090 hotel and serviced apartment rooms by end-2023. According to a JLL report, supply growth in 2023 was relatively muted, with only two serviced apartments, totalling 167 rooms, opening during the year.

The only two openings were the 102-room Citadines Gatot Subroto Jakarta and the 65-room Grand Mansion Menteng Crest Collection.

Here’s more from JLL:

A number of hotel openings have been postponed to 2024. As a result, 1,621 rooms are expected to enter the market in 2024, which will grow the supply by 2.9%. Notable upcoming openings include the 158-room Pan Pacific Jakarta, 185-room DoubleTree by Hilton Jakarta Bintaro Jaya Xchange and the 185-room PARKROYAL Jakarta.

Sustained RevPAR growth across all hotel segments

As of YTD December 2023, occupancy of Jakarta’s luxury hotels has recovered by 7.3 percentage points (ppts) to a pre-pandemic level of 61.5%. Furthermore, it has achieved an average daily rate (ADR) of IDR 2,453,096, which represents a growth of 8.8% as compared to 2022. This resulted in a 23.3% y-o-y growth in revenue per available room (RevPAR), reaching IDR 1,508,236.

Luxury hotels in Jakarta continue to ramp up occupancy while holding rates steady. Pent-up demand for offline events and a ramp-up in government activities leading up to the elections have pushed occupancy beyond pre-pandemic levels. As a result, the luxury sector’s RevPAR concluded at 14.2%, higher than in 2019.

Outlook: Hotel performance expected to rebound in 2Q24

Jakarta’s hotel trading performance slowed at the end of 2023, and muted demand is expected to continue in early 2024, leading up to the 2024 general elections. Business activities are expected to dip in early 2024, leading up to the elections, as companies become more cautious in the interim.

However, a resurgence in business activities in the post-election landscape will likely induce a rebound in the hotel sector’s performance. This also coincides with the end of the lull period in 1Q that results from religious observances, such as the fasting month and Eid holiday, that have historically dampened hotel business activities.

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

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