APPD Market Report Article


May 26, 2024

Nihat Ercan, CEO - Hotels & Hospitality Group, Asia Pacific


IDR 1,447,048


Foreign visitation in 2023 doubles 2022 volume

  • With the continued improvement in air capacity, over 1.9 million of international tourists visited Jakarta in 2023, representing a strong rebound of 109% y-o-y. The solid travel momentum in 2023 has enabled the city to record at 80% of pre-pandemic levels.
  • In 2023, Mainland China accounted for 13.2% of the total foreign visitors to Jakarta, with a total of 258,095 tourists. This represents a significant increase of over 250% compared to the previous year, making it the fastest-growing source market.

In Q1 2024, 285 new rooms enter the Jakarta market

  • Two new hotels completed in the first quarter: PARKROYAL Serviced Suites Jakarta, and ibis Jakarta Raden Saleh, bringing the total existing hotel and serviced apartment supply in Jakarta to 63,375 rooms at the end of Q1 2024. In particular, the luxury segment totalled 7,007 rooms including serviced apartments. Hotels in the capital city continued to be mostly located in the Central area.
  • By the end of 2024, 1,803 rooms are expected to open, the highest number in the next three years, driven by significant projects such as Pan Pacific Jakarta, Movenpick Hotel Jakarta City Centre, and 25hours Hotel The OddBird.

RevPAR of Jakarta luxury hotels improves with rising occupancy

  • The strong momentum registered in 2023 has continued in the first three months of 2024. The strong occupancy performance was boosted by the rebound in international guests, and sustained domestic demand also helped to hold high average daily rate (ADR) levels, induced by a resurgence in business activities in the post-election landscape.
  • In Q1 2024 however, luxury ADR have started to drop y-o-y, although still in excess of pre-COVID-19 levels. This enabled occupancy to rise to almost 60%, higher than in Q1 2019. As a result, revenue per available room (RevPAR) in the first three months of 2024 exceeded pre-pandemic levels by almost 8%.

Outlook: Resurgence in hotel performance anticipated in 2024

  • With improved airlift and international visitation likely to increase consequently in 2024, in tandem with robust domestic demand, RevPAR for Jakarta luxury hotels is anticipated to marginally rise, boosted by an uplift in occupancy.
  • A resurgence in business activities in the post-election landscape will likely induce a rebound in the hotel sector’s performance. This also coincides with the end of religious observances at the end of the first quarter, such as the fasting month and Eid holiday.

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

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