International arrivals hit a post-pandemic high as guests extend their stays

• As of YTD August 2025, international visitor arrivals grew 7.0% y-o-y and surpassed 2019 pre-pandemic levels by 6.1%. August 2025 recorded the highest monthly arrivals since post-pandemic recovery began.
• Average length of stay increased across hotel segments in August 2025. On a y-o-y basis, classified hotels rose 0.12 points to 1.54 nights, while non-classified hotels climbed 0.167 points to 1.361 nights.

Jakarta hotel supply tightens with minimal Q3 openings but a strong year-end pipeline ahead

• Q3 2025 saw only one new hospitality opening, namely the 151-key Ascott Menteng Jakarta serviced apartment, which launched in July in the central district.
• More hotel additions are anticipated towards the end of 2025, featuring a balanced mix of midscale and luxury positioning to meet varied market demand segments.

Falling RevPAR coincides with investment drought

• As of YTD September 2025, RevPAR declined y-o-y due to falling occupancy despite marginal ADR gains. Domestic market reliance pressured occupancy as domestic arrivals fell while rising international arrivals supported higher room rates.
• The Jakarta hotel investment market remained muted, with no transactions recorded since 2024, reflecting investor caution amid ongoing market performance challenges.

Outlook: Policy shifts and infrastructure boost drive optimistic outlook

• The Indonesian government lifted restrictions on regional government meetings at hotels, reversing austerity measures after industry pressure. Business-oriented Jakarta is expected to show steady resilience as MICE and corporate demand recovers.
• Among upcoming infrastructure investments is the Jakarta–Surabaya High-Speed Railway, which enhances Jakarta’s connectivity by cutting travel time from 11 hours to 3.5 hours and positions the capital as a premier gateway for visitors and investors.