Jakarta hotel performance expected to slow until Q1 2025

This is following a robust performance in Q3 2024.

As previously predicted by Colliers analysts, hotel performance in Jakarta improved during the third quarter of 2024. 

“This growth was driven by continued business activities from both government and corporate sectors, as well as offline events such as music concerts, conferences, and exhibitions. These factors have increasingly played a key role in boosting occupancy,” the analysts said.

Here’s more from Colliers:

Additionally, during this period of government transition, political agendas, including national conferences and congresses, have been quite active in Jakarta, further supporting occupancy rates, especially in areas surrounding event venues. This trend is reflected in the graph below, which shows an overall increase in performance during the third quarter (July - August) of 2024. 

By September, Jakarta’s hotel meeting rooms remained busy with MICE activities from both corporate and government sectors. Not all hotels, however, have large meeting rooms or ballrooms to accommodate big events.

As a result, for large gatherings, venues with greater capacity are typically chosen. If a hotel lacks sufficient room availability, it often arranges accommodations at nearby hotels of the same class. This means large-scale events not only benefit the hosting hotel but also boost surrounding hotels. 

In Q4, performance is expected to decline, which is typical for business hotels in Jakarta. Business activities, including business trips and MICE, generally remain strong until mid-December, just before the Christmas and New Year holidays. Business is expected to pick up again around the second week of January. 

Q1 2025 is also expected to be relatively slow. This is consistent with the establishment patterns, especially as Ramadan in 2025 begins at the end of February, with Eid al-Fitr falling in early April. Business activities, particularly MICE and business travel, typically slow down during this period. 

However, several international music events scheduled in Jakarta from Q4 2024 through Q1 2025 may offer an opportunity to boost hotel performance, especially for those located near event venues.