Jakarta hotel sector set for growth in H2 2025

Thanks to potential regulatory easing.

According to Colliers, the first half of 2025 has been particularly challenging for hoteliers in Jakarta, as a combination of domestic and international factors has placed pressure on market performance.

Additionally, the disappearance of the government segment has prompted many hoteliers to shift their focus toward the corporate market, which has become increasingly fragmented and competitive.

Here’s more from Colliers:

Looking ahead, hoteliers are hopeful that the second half of 2025 will bring more favorable conditions, including possible government incentives or relaxed regulations. Corporate demand is also expected to pick up modestly. Nonetheless, stakeholders are advised to remain proactive—diversifying target segments, fine-tuning pricing strategies, and embracing innovative offerings that respond to current travel behaviors.

In conclusion, while the Jakarta hotel market is gradually recovering, a full rebound will require both strategic agility and broader economic tailwinds. By proactively embracing untapped opportunities and adjusting to new market dynamics, hotels can not only weather the current transition but emerge more resilient and competitive in the long term.

In addition, hoteliers remain optimistic that conditions in the second half of 2025 will improve, supported by potential regulatory easing or government incentives that could help stimulate demand. A gradual rebound in the corporate segment is also anticipated. In the meantime, it is essential for hoteliers to proactively explore new markets and implement adaptive strategies to offset the shortfalls experienced in the first half of the year.

Meanwhile, the DKI Provincial Government plans to provide incentives in the form of a 50% discount on hotel and restaurant taxes, which will be continued two months later with a 20% discount and is expected to be able to help people's purchasing power, especially for spending at hotels.