Continued increases in tourism demand supports improvement in trading performance

• In the first eight months of 2024, Jakarta welcomed more than 1.63 million international tourists, representing a significant Y-o-Y increase of nearly 34%, just 1% short of pre-pandemic levels.
• On the back of continued strong tourism momentum, Jakarta hotels registered a significant annual rise in trading performance, driven by constant growth in ADR, which reached an all-time high since the pandemic, and improving occupancy.

An addition of 148 rooms in the third quarter

• Only one property opened in the third quarter: Somerset Kencana Jakarta. Located in the South area, this serviced apartment added 148 rooms to the existing market.
• An additional 507 rooms are anticipated to open by end-2024, driven by the 25Hours The Oddbird, with a total of 345 rooms split between traditional hotel rooms and serviced apartments.

Strong investor interest despite scarcity of hotels for sale

• No completed hotel transactions were recorded in the first nine months of 2024, as hotels in Jakarta rarely change hands and are predominantly held by family firms and publicly listed entities.
• However, as Indonesia tourism continues to develop, hotel transaction volume in the country is likely to surpass USD 200 million by end-2024.

Outlook: Jakarta tourism to gradually close the gap with pre-pandemic times

• Tourism in Jakarta, and more broadly in Indonesia, is closing the gap with pre-pandemic levels. If current trends continue in 4Q, Indonesia is anticipated to reach USD 19.1 billion in international visitor spending, according to the World Tourism and Travel Council.
• We anticipate more headroom for growth in the hotel sector as the Jakarta market stands to benefit from improved occupancy levels.