Jakarta new hotel supply to remain limited in the near term

Only two hotels are expected to open in 2025.

In a report, JLL revealed that as of YTD June 2025, the 240-key Swissotel Living Jakarta Mega Kuningan marked the first opening of the year, opening in April, with further serviced apartment additions anticipated in the latter half of the year.

Additionally, the report said future hotel supply is expected to be limited, with only two openings anticipated in 2025, namely the 162-key PARKROYAL Jakarta and the 181-key Hotel Okura Jakarta.

Here’s more from JLL:

As of YTD May 2025, international visitor arrivals have demonstrated steady growth with a 6.2% y-o-y increase, though recovery has not yet reached the benchmark levels established in 2019, prior to the pandemic.

During these five months in 2025, Jakarta saw diverging visitor patterns, with international arrivals declining monthly while domestic visitation grew consistently.

Investment activity completely frozen since 2024 while RevPAR declines across all hotel segments

The Jakarta hotel investment market remains muted with no transactions recorded since 2024.

In terms of trading performance, Jakarta continues to experience a decline in occupancy amid a slowdown in domestic demand due to ongoing austerity measures. RevPAR overall has however increased from the same time last year, thanks to a strong growth in ADR.

Outlook: Near-term pressures due to austerity measures, but expected to be short lived

Hotels, especially those catering to MICE demand, are expected to remain under pressure due to reduced domestic and government spending stemming from ongoing austerity measures. However, the recent easing of these measures in June 2025 suggests that ongoing constraints may be temporary, potentially alleviating pressure on the sector’s performance.

Efforts to promote tourism are ongoing. The recent Tourism Ministry-Jakarta partnership aims to establish Jakarta as a global city by enhancing cultural assets and infrastructure, leveraging its position as a key getaway.