Half of incoming rooms in Jakarta this year are from serviced apartments

Six lodging facilities are expected to open before the year ends.

A total of three properties offering 578 keys have opened so far in Jakarta in 2022. The only opening in Q3 was the 220-key Park Hyatt Jakarta.

However, JLL reveals that six lodging facilities, offering around 1,288 rooms, are slated to open for the rest of 2022. These include the 289-key St Regis Jakarta and 347-key Oakwood Premier Jakarta. Serviced apartments are expected to account for around half of the incoming rooms in 2022.

Here’s more from JLL:

International visitation has seen a strong pick up since the reopening of borders in April 2022, following two years of muted international arrivals. International visitors surged to 472,942 as of YTD August 2022, representing an increase of 619.8%.

Top source markets currently include Malaysia (9.7%), China (7.5%) and Singapore (6.8%). There has been a drop in Chinese and Japanese visitor numbers, compared to pre-pandemic times, as these markets have yet to or have only just reopened their international borders. Nonetheless, demand recovery is expected to continue on the back of returning visitation from other source markets.

Strong RevPAR recovery due to ADR growth and stabilised occupancy

As of September 2022, luxury hotels in Jakarta have recorded a 75.1% y-o-y growth in revenue per available room (RevPAR), boosted primarily by strong average daily rate (ADR) recovery of 36.8% to IDR 2.1 million. Occupancy rates show signs of stabilisation after a 11.3 percentage points (ppts) increase y-o-y to 50.9%.

While luxury RevPAR has trended upwards since the reopening of borders in April 2022, it remains at 85% of YTD September 2019 levels. Further recovery is expected to be driven by occupancy growth as demand from international corporate guests continues to grow.

Outlook: Tourism picks up significantly with lifted border restrictions

While the industry is likely to continue to be supported predominantly by domestic demand in the short term, the earlier-than-expected reopening of borders is expected to draw in higher-paying international visitors. This will in turn boost trading performance, particularly for ADR as international tourists seek out luxury hotels in the market.

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, as they are key markets to Indonesia.

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