International visitation continues to increase, just 8% below pre-pandemic levels

• International visitor arrivals to Jakarta have been on an upward trend. As of YTD May 2024, the capital city welcomed more than 865,000 foreign tourists, up 36% y-o-y, but just 8% short of the pre-pandemic level.
• Indonesia is anticipated to welcome around 14 million international tourists in 2024. Corporates and MICE visitors should continue to be strong and represent the majority of international visitors to Jakarta.

New hotel rooms increase by a total of 621 in Q2 2024

• Three hotels opened in Jakarta in Q2 2024, adding a total of 621 to the existing supply: DoubleTree by Hilton Jakarta Bintaro Jaya Xchange, Movenpick Hotel Jakarta City Centre and Pan Pacific Jakarta.
• At the end of June 2024, Jakarta’s total hotel room stock (including serviced apartments) was more than 639,000, with the midscale segment representing around 42% of existing supply and more than one-third of them in the Central area.

The return of corporates and the Idul Fitri holiday pushes trading performance

• In H1, Jakarta’s hotel trading performance exceeded 2019 levels, boosted by both occupancy and above-pre-pandemic level ADR. All segments recorded strong y-o-y growth in RevPAR with Idul Fitri and the continued return of corporates and MICE.
• The hotel capital market activity remained quiet in Jakarta. No hotel transaction of more than IDR 5 million was completed in H1 2024. However, domestic and foreign investor interest in Indonesia remained strong.

Outlook: Tourism fundamentals in Jakarta to remain strong, mostly led by robust domestic demand

• With improved air transport and international visitors likely to increase in tandem with robust domestic demand in 2024, RevPAR for Jakarta hotels is anticipated to continuously rise, albeit at a slower pace.
• Investors are confident about the fundamentals of Indonesia’s hotel space, particularly in Jakarta and Bali. Around USD 265 million worth of hotel transactions are expected in 2024 in Indonesia, most likely led by the higher-end segment.