Robust demand for premium accommodation driven by increasing international visitor arrivals and sustained domestic travel resilience

• As a primary gateway into the country, Soekarno-Hatta International Airport continues to welcome a significant share of visitors. As of YTD November 2025, Jakarta received 2.5 million visitors, reflecting resilient annual growth of 7.5%.
• In November 2025, approximately 76.8% of all foreign guests chose to stay in four- and five-star properties. Five-star hotels remained the clear favourite, capturing nearly 43% of the international market. Domestic guest demand also remained resilient, with four- and five-star properties seeing increased market share.

Jakarta’s hotel pipeline expands with the midscale segment driving future growth

• In Q4 2025, two midscale hotels opened, namely aloft Hotel Jakarta Kebon Jeruk (140 keys) and Novotel Jakarta Pulo Mas (175 keys).
• Jakarta’s hotel inventory is projected to grow 1.6% in 2026, as new midscale and serviced apartment developments account for 70% of the additional room stock.

Luxury hotel strength renews investor optimism in an otherwise subdued market

• RevPAR fell in Q4 2025 as a broad drop in occupancy outweighed marginal ADR gains. This decline was driven by government austerity on official travel, which cut domestic demand and affected all hotel segments in Jakarta, which traditionally have relied on MICE demand.
• Hotel investment activity in Jakarta remained sluggish, with no deals recorded since 2023 due to performance challenges. However, the consistent strength of luxury properties has shifted investor focus towards the high-end segment, signalling renewed optimism.

Outlook: Jakarta’s future is expected to be bolstered by strategic investments in sports and transit infrastructure

• Jakarta’s outlook is supported by a strategic push into sports and wellness tourism. By hosting global events and upgrading venues, the city aims to attract high-quality travellers and diversify demand, offsetting recent market softness.
• Moreover, the development of MRT Phase 2A, a national strategic project connecting the CBD to historic Kota Tua, is expected to unlock cultural sites, spur transit-oriented development and create new sustainable demand drivers for the hotel market.