Jakarta hotel performance set to improve until Q4

Occupancy rates are expected to grow as business activities increase.

Hotel performance in Jakarta is projected to continue improving until mid-Q4 2024, especially in terms of occupancy rates, notably in the third quarter. 

Ferry Salanto, Head of Research at Colliers, mentioned that “Despite initial setbacks, hotel performance began to improve in the second quarter of 2024. It is anticipated that hotel performance will continue to strengthen in the latter half of 2024, especially with increased business activities.” 

Major events are usually planned well in advance, with hotels offering competitive special rates to attract participants. This practice extends to group events, whether organized by government or corporate entities, where hotels provide competitive pricing based on participant numbers. Besides room revenue, hotels also generate additional income from sectors like F&B and housekeeping.

While for the hotel market in Surabaya, Colliers projected that in the second half of 2024, hotel performance in Surabaya is to show gradual improvement, albeit with modest growth prospects. Business activities driven by the government and corporate sectors are projected to increase until the second week of December. Colliers also projected that the period from July to November is considered optimal for pursuing 2024 targets, despite the market’s relative limitations compared to Jakarta and Bali.

Regarding hotels in Bali, Colliers projects that hotel performance will continue its upward trend in the second half of 2024. In addition to school holidays, several offline activities are also expected to contribute positively. 

The surge in tourist arrivals to Bali has positively impacted the performance of the hospitality sector, particularly in the Nusa Dua area. Large-scale international events, such as the recent World Water Forum held in Bali, have significantly boosted hotel performance in this region. Additionally, the numerous events organized by governmental and corporate entities have contributed to the enhanced performance of hotels in Bali. Not only MICE events but also sporting events, which add to Bali's allure as a destination, have further augmented hotel performance.