Serviced apartments to account for 41% of new hotel rooms in Jakarta
Approximately 1,550 new rooms will enter the market this year.
Limited demand for accommodations has caused hotel openings to be limited in Jakarta over the last two years.
Nevertheless, the city will see eight new lodging properties with around 1,550 rooms entering the market this year. JLL says all properties except one property are located within the Golden Triangle of Jakarta. Serviced apartments will account for around 41% of total incoming room supply.
Here’s more from JLL:
Revenue per available room (RevPAR) rose by 84.1% y-o-y as of YTD March 2022, driven by growth in occupancy which rose 11.2 ppts to 47%, while average daily rate (ADR) rose 40.6% to IDR 2.0 million. Sustained improvement in occupancy rates driven primarily by domestic demand has given confidence for hotels to gradually increase rate levels again.
The recent reopening of borders is expected to facilitate the gradual return of higher-spending international corporate guests, which should help boost overall ADR levels. Occupancy is also expected to recover as both international and domestic visitation improves.
Outlook: Regional reopening likely to bolster Jakarta’s hotel recovery
Recent full reopening of borders in neighbouring countries, namely Singapore and Malaysia, is expected to provide a major boost to regional travel, especially for corporates. Jakarta is expected to benefit greatly from the reopening of both markets given that both countries were amongst the top source markets to the city pre-pandemic.
Full recovery, however, will likely take some time as demand from other major markets from North Asia will likely remain muted in the near term due to continued COVID-19 restrictions. Further, the current geopolitical and inflationary environment may result in the curtailment of corporate demand which will weigh on the recovery.
Note: Jakarta Hotels refers to Jakarta's luxury hotel market.