Jakarta hotel transaction volume could surpass USD200m this year

There is strong investor interest in the sector.

According to JLL, in the first eight months of 2024, Jakarta welcomed more than 1.63 million international tourists, representing a significant Y-o-Y increase of nearly 34%, just 1% short of pre-pandemic levels.

On the back of continued strong tourism momentum, Jakarta hotels registered a significant annual rise in trading performance, driven by constant growth in ADR, which reached an all-time high since the pandemic, and improving occupancy.

An addition of 148 rooms in the third quarter

Only one property opened in the third quarter: Somerset Kencana Jakarta. Located in the South area, this serviced apartment added 148 rooms to the existing market.

An additional 507 rooms are anticipated to open by end-2024, driven by the 25Hours The Oddbird, with a total of 345 rooms split between traditional hotel rooms and serviced apartments.

Strong investor interest despite scarcity of hotels for sale

No completed hotel transactions were recorded in the first nine months of 2024, as hotels in Jakarta rarely change hands and are predominantly held by family firms and publicly listed entities.

However, as Indonesia tourism continues to develop, hotel transaction volume in the country is likely to surpass USD 200 million by end-2024.

Outlook: Jakarta tourism to gradually close the gap with pre-pandemic times

Tourism in Jakarta, and more broadly in Indonesia, is closing the gap with pre-pandemic levels. If current trends continue in 4Q, Indonesia is anticipated to reach USD 19.1 billion in international visitor spending, according to the World Tourism and Travel Council.

We anticipate more headroom for growth in the hotel sector as the Jakarta market stands to benefit from improved occupancy levels.