Improvement in international visitor arrivals sustained growth in ADR

• As of YTD March 2026, international visitor arrivals have increased by 6.7% Y-o-Y despite to the Middle East tensions.
• Nonetheless, domestic visitor arrivals cushioned the impact with a notable 7.1% growth.

Limited new supply in first half of 2026 to be followed by a series of hotel openings by year-end

• In Q1 2026, only one hotel, the 28-key Brix Hotel Cilandak in the South area of Jakarta, was introduced into the market.
• Jakarta’s hotel supply pipeline is muted with no Q2 openings. However, several hotels are expected by year-end, including the175-key Handwritten Kapuk Hills and the 224-key Fairfield by Marriott Slipi, and the upscale PARKROYAL Jakarta located in CBD – Thamrin.

Jakarta’s hotel investment market reawakens amid diverging RevPAR performance by segment

• Despite a drop in international visitor arrivals, RevPAR grew in the luxury and upscale segments. However, the midscale segment saw a decline driven by both weaker rates and falling occupancy from last year.
• Jakarta’s hotel investment market is reviving, highlighted by the signing of the Waldorf Astoria Jakarta sale in Q1 2026. Rising foreign investor interest in premium assets in Jakarta points to a more active transaction in 2026.

Outlook: Luxury hotels will thrive on new tourism efforts, while midscale hotels face headwinds from government spending cuts

• To boost tourism, government initiatives include the Clean Tourism Movement for sustainability, thematic packages centered around gastronomy and wellness for high-spending visitors, and developing tourism villages for authentic local experiences.
• Looking ahead, luxury hotels catering to corporate and high-end leisure travelers are expected to perform well. Midscale hotels that have historically relied on government business face a more challenging environment and will need to adapt their strategies given the recent budget reallocation that has curtailed official travel and large-scale meetings.