Half of incoming rooms in Jakarta this year are from serviced apartments | Real Estate Asia
, Indonesia

Half of incoming rooms in Jakarta this year are from serviced apartments

Six lodging facilities are expected to open before the year ends.

A total of three properties offering 578 keys have opened so far in Jakarta in 2022. The only opening in Q3 was the 220-key Park Hyatt Jakarta.

However, JLL reveals that six lodging facilities, offering around 1,288 rooms, are slated to open for the rest of 2022. These include the 289-key St Regis Jakarta and 347-key Oakwood Premier Jakarta. Serviced apartments are expected to account for around half of the incoming rooms in 2022.

Here’s more from JLL:

International visitation has seen a strong pick up since the reopening of borders in April 2022, following two years of muted international arrivals. International visitors surged to 472,942 as of YTD August 2022, representing an increase of 619.8%.

Top source markets currently include Malaysia (9.7%), China (7.5%) and Singapore (6.8%). There has been a drop in Chinese and Japanese visitor numbers, compared to pre-pandemic times, as these markets have yet to or have only just reopened their international borders. Nonetheless, demand recovery is expected to continue on the back of returning visitation from other source markets.

Strong RevPAR recovery due to ADR growth and stabilised occupancy

As of September 2022, luxury hotels in Jakarta have recorded a 75.1% y-o-y growth in revenue per available room (RevPAR), boosted primarily by strong average daily rate (ADR) recovery of 36.8% to IDR 2.1 million. Occupancy rates show signs of stabilisation after a 11.3 percentage points (ppts) increase y-o-y to 50.9%.

While luxury RevPAR has trended upwards since the reopening of borders in April 2022, it remains at 85% of YTD September 2019 levels. Further recovery is expected to be driven by occupancy growth as demand from international corporate guests continues to grow.

Outlook: Tourism picks up significantly with lifted border restrictions

While the industry is likely to continue to be supported predominantly by domestic demand in the short term, the earlier-than-expected reopening of borders is expected to draw in higher-paying international visitors. This will in turn boost trading performance, particularly for ADR as international tourists seek out luxury hotels in the market.

As international visitation ramps up, the Ministry of Tourism and Creative Economy (MoTCE) is taking steps to ensure seat capacity is available to accommodate the anticipated pent-up demand of travellers. The MoTCE will likely also focus its marketing and promotional efforts on Australia, Singapore, France, the UK and the US, as they are key markets to Indonesia.

 

Note: Jakarta Hotels refers to Jakarta's luxury hotel market.

 

Follow the link for more news on

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.

Event News

Event News

Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.
Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.