Almost half of new hotel openings in Jakarta will be serviced apartments | Realestate Asia
, Indonesia

Almost half of new hotel openings in Jakarta will be serviced apartments

Six properties are expected to open within this year.

Hotel openings in Jakarta are limited so far this year. According to a JLL report, the only hotel that opened in 2Q22 was the 231-room Citadines Sudirman Jakarta. Several planned openings in 1H22 have either been delayed to the second half of 2022 or deferred indefinitely.

The report added that six lodging properties offering around 937 rooms are slated to open for the rest of 2022, a substantial pick-up from the last two years due to a spillover of delayed openings since the onset of the COVID-19 pandemic. Serviced apartments are expected to account for around 43% of upcoming rooms that are slated to open in 2H22.

Here’s more from JLL:

Revenue per available room (RevPAR) rose by 51.3% y-o-y to IDR 1.0 million as at YTD June 2022, driven by a 33.9% growth in average daily rate (ADR) to IDR 2.1 million, as hotels continue to increase rates and occupancy rates show sign of stabilisation. Occupancy rate rose by 5.6 ppts y-o-y to 48.8%.

Luxury RevPAR in June 2022 was IDR 1.3 million, which marked one of the highest monthly RevPAR performance since the start of the COVID-19 pandemic. Monthly RevPAR was also in line with June’s 2019 performance, which suggests that trading performance may soon recover and reach pre-pandemic levels again.

Outlook: Rebound in international visitation to drive trading recovery

While domestic tourism will likely continue to drive demand for luxury hotels in the near term, the quicker-than-expected reopening of borders, both in the country and regionally, is expected to fuel the rebound in higher-paying international visitors. This should facilitate a recovery in trading performance, particularly for ADR.

As international visitation ramps up, The Ministry of Tourism and Creative Economy (MoTCE) is taking steps to ensure seat capacity is available to accommodate the anticipated pent-up demand of travellers. The MoTCE will likely also focus its marketing and promotional efforts on Australia, Singapore, France, the UK and the US, which are key markets to Indonesia.

 

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

 

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