Serviced apartments dominate Jakarta’s new hotel supply in 2023 | Real Estate Asia
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Serviced apartments dominate Jakarta’s new hotel supply in 2023

Over 70% of the new rooms to enter the market are from serviced apartments.

Jakarta’s hotel pipeline is expected to be muted in 2023, with a total of 1,002 rooms expected to enter the market this year, representing a 1.6% y-o-y growth. In a report, JLL said hotels that were expected to open this year have had their opening dates postponed to 2024. 

Between 2023 and 2025, hotel supply is projected to grow at an annual rate of 1.1%.

Here’s more from JLL:

For the remainder of the year, 900 new rooms are expected to enter the market. Of these rooms, 72%, or 647 rooms are serviced apartments. The only hotel that is expected to open this year is the 253-room Movenpick Jakarta Pecenongan.

Strong RevPAR across all hotel segments

As of YTD September 2023, occupancy of Jakarta luxury hotels has recovered by 8.1 percentage points (ppts) to a pre-pandemic level of 60.0%. Furthermore, it has achieved an average daily rate (ADR) of IDR 2,465,778, which represents a growth of 12.9% as compared to 2022. This resulted in a 30.4% y-o-y growth in revenue per available room (RevPAR) to reach IDR 1,478,361.

Other hotel segments, such as upscale and midscale, have recovered strongly amid the tourism rebound in 2023 and have achieved a RevPAR that surpassed pre-pandemic levels. Upscale and midscale hotels RevPAR saw a y-o-y growth of 40.0% and 30.4% respectively.

Outlook: Tourism industry to continue its growth trajectory

The 2024 Indonesian general election should further boost corporate demand in the near term as more meetings are expected to be held in the capital. Hence, we foresee an uptick in occupancy leading up to the election as hotels capitalise on the spillover demand from political activities.

Looking ahead, we expect the trading performance to continue improving on the back of an expected ramping up of Mainland Chinese outbound tourism. Trading performance is expected to maintain an elevated level in 2023 and early 2024.


Note: Jakarta Hotels refers to Jakarta's luxury hotel market.


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