Expect 10 new lodging properties in Jakarta in 2022

A third of them will be serviced apartments.

According to a JLL report, hotel openings in Jakarta remain limited in 2021 compared to historical years, with just four major openings totalling 678 rooms. Openings in the 2H21 include the 223-room Langham Jakarta and the 176-room Somerset Sudirman Jakarta. Several planned openings in 2021 have either been shelved to a later date or postponed indefinitely amid construction delays and muted demand due to border closures.

Ten lodging properties offering around 1,900 rooms are slated to open in 2022, a substantial pick-up from the last two years due to a spillover of delayed openings since the onset of the COVID-19 pandemic. Serviced apartments is expected to account for around 30% of upcoming rooms in 2022.

Here’s more from JLL:

Revenue per available room (RevPAR) rose by 51.3% y-o-y in 2021, driven primarily by the rebound in occupancy rates which rose 16.3 ppts to 46%, which more than offset the 2.3%-y-o-y decline in average daily rate (ADR) to IDR 1.7 million. Further, the moderating decline in ADR indicates that it may be starting to bottom out.

Luxury RevPAR in December 2021 was IDR 1.3 million, which marked a monthly high since the start of the COVID-19 pandemic. This was buoyed by the strong rebound in occupancy rates, which not only reached a pandemic high of 68% but was also higher than pre- COVID-19 rates in December 2019.

Outlook: Anticipated reopening to boost performance

Recovery in trading performance in the near term will likely remain domestic-led, as domestic corporates and staycation guests continue to fuel demand for luxury hotels. However, the gradual reopening of borders in the region is expected to be a major catalyst which will accelerate the recovery.

On a positive note, Indonesia has recently opened a quarantine-free travel corridor that allows people from Singapore to travel to Batam and Bintan. With Singapore already operating a unilateral vaccinated travel lane (VTL) with Jakarta since November 2021, there is growing optimism that Indonesia will soon open more of such corridors to other key regions such as Jakarta.