Jakarta hotel inventory to grow by 1.6% this year

Midscale hotels and serviced apartments dominate the pipeline.

Jakarta’s hotel market is poised for steady growth, with the midscale segment leading the way. In Q4 2025, the city welcomed two new midscale properties: aloft Hotel Jakarta Kebon Jeruk, offering 140 keys, and Novotel Jakarta Pulo Mas with 175 keys. According to JLL, Jakarta’s hotel inventory is projected to increase by 1.6% in 2026, with midscale hotels and serviced apartments accounting for approximately 70% of the additional room stock.

Despite this expansion, revenue per available room (RevPAR) fell in Q4 2025, as occupancy declines outweighed modest gains in average daily rates (ADR). The downturn was largely driven by government austerity measures on official travel, which cut domestic demand across all hotel segments and affected the city’s traditionally MICE-driven hospitality market. Hotel investment activity in Jakarta has remained subdued, with no transactions recorded since 2023, reflecting ongoing performance challenges.

However, the strength of luxury hotels has prompted renewed investor interest in the high-end segment, according to JLL, signalling optimism despite the broader softness in the market. Investors are increasingly viewing luxury properties as a stable avenue for returns amid the evolving hospitality landscape.

Looking ahead, Jakarta’s outlook is underpinned by strategic investments in sports and wellness tourism, aimed at attracting high-quality travelers and diversifying demand sources. Hosting global events and upgrading venues are expected to enhance the city’s appeal, while the development of MRT Phase 2A—a national strategic project connecting the CBD to historic Kota Tua—promises to unlock cultural sites, spur transit-oriented development, and create sustainable new drivers of hotel demand.

JLL notes that these initiatives, combined with midscale pipeline growth and the resilience of the luxury segment, position Jakarta’s hotel market for measured recovery and targeted investment opportunities in the near term.