Hotel Sector
Hotel Supply
The slowdown in business activity characterised the overall hotel market in Jakarta with supply growth only moving forward modestly. There are several hotel projects that are expected to delay their openings. This quarter, new hotel rooms were provided by four 3- and 4-star hotel projects, providing a total of 881 new hotel rooms. Santika Group, the biggest local hotel operator, introduced their latest 4-star hotel project named Santika Premiere Hayam Wuruk with a total of 271 rooms. This hotel is located in at Jl Hayam Wuruk Central Jakarta providing five meeting rooms, and a restaurant in addition to other supporting facilities. Swiss-Belhotel Group opened their new 4-star hotel in Jakarta called Swiss-Belresidence Kalibata. Located in the South Jakarta area, this hotel has 212 rooms with one restaurant and bakery, eight meeting rooms and one ballroom, a spa and a gym as their supporting facilities. Another new 4-star hotel in South Jakarta area is Grandhika Hotel, owned by one of the state-owned enterprises in Indonesia. This hotel has 239 rooms with eleven meeting rooms, five restaurants and lounges, business centre, swimming pool, spa and gym as their supporting facilities. In total, the total supply of 4-star hotels in Jakarta is 15,046 rooms at 65 hotels.
Cumulative Supply of Star Rating Hotel Projects in
Jakarta
Source: Colliers International Indonesia - Research
0 20 40 60 80 100 120 20 10 20 11 20 12 20 13 20 14 20 15 YT D 20 15 F 20 16F 20 17 F 20 18F 20 19 F
3-star 4-star 5-star
Jakarta has a total of four hotels as of 3Q 2015 at three operating hotel projects. Two hotels are operated by Swiss-Belhotel Group, one hotel is operated by Santika Indonesia Hotels & Resorts, and one hotel is operated by Grandhika.
In the 3-star hotel category, Swiss-Belhotel Group added another 159 rooms in the TB Simatupang area, called Swiss-Belinn Simatupang. Having four meeting rooms, this hotel targets corporations operating in TB Simatupang and surrounding areas. The operation of this new hotel increased the cumulative number of 3-star hotel rooms in Jakarta to 9,773 at 75 hotels. The TB Simatupang area already has a 3-star hotel, Swissbell and a 4-star hotel, Aston Priority Simatupang Hotel & Conference in 2015.
Highlight
There are several hotel projects that are expected to delay their openings. This quarter, new hotel rooms became available in four 3- and 4-star hotel projects, providing a total of 881 new hotel rooms. Overall, hotel occupancy in Jakarta area dropped slightly by 1.2% QoQ to 57.2%, while occupancy in the CBD alone slumped 2.5% to 58.6%. In line with the declining trend in occupancy, the Average Daily Rate (ADR) of hotels in Jakarta dropped quite a bit. Luxury class hotels in the CBD saw the biggest drop of 2.4% to USD191.90, midscale class and midscale class+ hotels fell by almost 2% to USD66.60 and upper-class hotels were down 1.4% to USD76.50.
Research &
Forecast Report
Jakarta | Hotel
Cumulative Supply of Star Rating Hotel Rooms in
Jakarta
Source: Colliers International Indonesia - Research
Hotel Developments in Pipeline
hotel name ratingstar str global equivalent
rate location region rooms
projected completion
time
Holiday Inn Express Cikini 3-star Upper Midscale
Class Cikini Raya,Cikini Central Jakarta 372 2015 Harper Cawang Hotel & Conference Center 3-star N/A Cawang East Jakarta 108 2015 Hotel @ Tanjung Duren 3-star N/A Tanjung Duren West Jakarta 150 2015 Hotel Santika Rawamangun 3-star Upper Upscale
Class Rawamangun East Jakarta 140 2015
Ibis Style Jakarta Sunter 3-star Midscale Class Sunter North Jakarta 150 2015
Menteng Square Hotel 3-star N/A Menteng Central Jakarta 180 2015
Santika TB Simatupang 3-star Upper Upscale
Class TB Simatupang South Jakarta 145 2015 Whiz Prime Hayam Wuruk 3-star N/A Hayam Wuruk Central Jakarta 100 2015
Whiz Prime Satrio 3-star N/A Satrio CBD 100 2015
Zuri Express Menteng 3-star N/A Menteng Central Jakarta 159 2015
Holiday Inn Hotel & Resorts Jakarta Gajah Mada 3-star Upper Midscale
Class Gajah Mada Central Jakarta 447 1Q 2016 Yello Hotel Hayam Wuruk 3-star N/A Hayam Wuruk Central Jakarta 372 3Q 2016 A One Hotel Jakarta 3-star N/A Wahid Hasyim Central Jakarta 200 2016
Horison Ciputat Jakarta 3-star N/A Ciputat South Jakarta 100 2016
Big Hotel (Extention) 3-star N/A Sawah Besar North Jakarta 75 2016 Ibis Styles Jakarta Bangka Raya 3-star Midscale Class Kemang South Jakarta 200 2016 Ibis Styles Jakarta PIK 3-star Midscale Class Pantai Indah Kapuk North Jakarta 200 2016
Prima Hotel 3-star N/A Salemba Central Jakarta 150 2016
Holiday Inn Express Simatupang 3-star Upper Midscale
Class TB Simatupang South Jakarta 200 2016 Hotel @ Tanah Abang 3-star N/A Tanah Abang Central Jakarta 225 2017 Prasanthi Kebon Jeruk 3-star N/A Kebon Jeruk West Jakarta 200 2017
Quest Menteng 3-star N/A Menteng Central Jakarta 199 2017
Citizen M 3-star Upscale Class Mega Kuningan CBD 112 2018
0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 20 10 20 11 20 12 20 13 20 14 20 15 YT D 20 15 F 20 16F 20 17 F 20 18F 20 19 F
Source: Colliers International Indonesia - Research and STR Global
hotel name ratingstar str global equivalent
rate location region rooms
projected completion
time
Continuation
Grand Whiz Hotel Sunter 4-star N/A Sunter North Jakarta 160 2015
Aston Titanium Cijantung 4-star Upscale Class Cijantung East Jakarta 236 2015 Aston Kemayoran 88 4-star Upscale Class Kemayoran Central Jakarta 200 2015 Mercure Jakarta Matraman 4-star Upscale Class Matraman East Jakarta 180 2015 Swiss-Belhotel Rasuna Epicentrum 4-star Upscale Class Rasuna Epicentrum, Rasuna
Said South Jakarta 323 2015
Grand Clarion 4-star Upscale Class Cipinang East Jakarta 272 2015
Holiday Inn (ex Metropolitan Land office) /
Metland Premier Hotel Jakarta 4-star Upper Midscale Class Cawang East Jakarta 156 2015 Mercure Jakarta Kelapa Gading 4-star Upscale Class Kelapa Gading North Jakarta 156 2015 Grand Whiz Poin Square 4-star N/A Lebak Bulus South Jakarta 132 2015 Aston Gajah Mada Hotel & Convention Center 4-star Upscale Class Gajah Mada Central Jakarta 192 2015 Swiss-Belhotel Cikini 4-star Upscale Class Cikini Central Jakarta 168 2015 Harris Hayam Wuruk 4-star Upscale Class Hayam Wuruk Central Jakarta 238 3Q 2016 Swiss-Belhotel Kirana Avenue - Kelapa Gading 4-star Upscale Class Kelapa Gading North Jakarta 300 2016
Indigo Kemang 4-star Upscale Class Kemang South Jakarta 150 2016
Aston Sunter Hotel 4-star Upscale Class Sunter North Jakarta 150 2016 Ancol Courtyard Marriott Hotel 4-star Upscale Class Ancol North Jakarta 310 2016 Holiday Inn & Suites Simatupang 4-star Upper Midscale
Class TB Simatupang South Jakarta 300 2016
Horison Ultima Jakarta 4-star N/A Cawang East Jakarta 182 2016
Grand Orange Pasar Baru Mansion 4-star N/A Pasar Baru Central Jakarta 222 2016 Suite Novotel Jakarta PIK 4-star Upscale Class Pantai Indah Kapuk North Jakarta 220 2016 aloft Kebon Jeruk 4-star Upscale Class Kebon Jeruk West Jakarta 140 2017 aloft Wahid Hasyim 4-star Upscale Class Wahid Hasyim Central Jakarta 170 2017 Hotel Santika Premier Yos Sudarso 4-star Upper Upscale
Class Yos Sudarso North Jakarta 257 2017 Hotel @Perintis - South Tower 4-star N/A Mega Kuningan CBD 112 2018 Sheraton Jakarta Gandaria City 5-star Upper Upscale
Class Gandaria South Jakarta 293 4Q 2015
Alila - SCBD lot 11 5-star Luxury Class SCBD CBD 250 2015
Grand Mercure Jakarta Kemayoran 5-star Upscale Class Kemayoran Central Jakarta 505 2015 JW Marriott @Kemang Village 5-star Luxury Class Kemang South Jakarta 275 2015 The Westin Jakarta@Cemindo Tower 5-star Luxury Class Cemindo Tower, Rasuna Said CBD 250 1Q 2016
St Regis 5-star Luxury Class Gatot Subroto CBD 125 2Q 2016
InterContinental Jakarta Pondok Indah Hotel &
Residences 5-star Luxury Class Pondok Indah South Jakarta 470 2016 JW Marriott @St Moritz 5-star Luxury Class Puri Indah West Jakarta 208 2016
Ammi Jakarta 5-star N/A Darmawangsa South Jakarta 180 2016
The Langham District 8@Lot 28 SCBD 5-star Luxury Class SCBD CBD 500 2017 W Hotel @Ciputra World Jakarta 2 5-star Luxury Class Ciputra World 2, Satrio CBD 126 2018 Four Seasons (after renovation) 5-star Luxury Class Rasuna Said CBD 250 2018 Regent 5-star Luxury Class Mangkuluhur City, Gatot
Subroto CBD 365 2018
Rosewood Jakarta 5-star Luxury Class Satrio CBD 200 2018
Waldorf Astoria 5-star Luxury Class Thamrin CBD 181 2018
Budget Hotel
During 3Q 2015, there were several new budget hotels opening, including one under Archipelago International called Favehotel Zainul Arifin with a total of 84 rooms. As of this quarter, the budget hotels in the Jakarta area have 4,818 rooms, an increase of 9.6% compared to the end of 2014.
Within the next couple of years, Archipelago International will expand their business operations by developing more budget hotels under several brands including Favehotel and NEO. So far, these two hotel brands will be the biggest competitor for Tauzia Management with their existing brands like Harris, Yello and Pop!.
For the remainder of this year, should all of the under-construction projects be completed as scheduled, there will be 591 new rooms in the budget hotel category in the Jakarta hotel market.
Cumulative Supply of Budget Hotels (Economy
Class) in Jakarta
Source: Colliers International Indonesia - Research
0 5 10 15 20 25 30 35 40 45 50 20 10 20 11 20 12 20 13 20 14 20 15 YT D 20 15 F 20 16F 20 17 F 20 18F 20 19 F
Source: Colliers International Indonesia - Research and STR Global
Budget Hotel Development in the Pipeline
name of development equivalent ratestr global location region roomsno. of completion projected time
Whiz - Cipete N/A Cipete South Jakarta 180 2015
Whiz - Hayam Wuruk N/A Hayam Wuruk Central Jakarta 180 2015
@HOM - Cawang N/A Cawang East Jakarta 80 2015
Amaris - TB Simatupang Economy TB Simatupang South Jakarta 151 2015
POP! Hotel Pasar Baru N/A Pasar Baru Central Jakarta 112 1Q 2016
Neo TB Simatupang N/A TB Siamtupang South Jakarta 170 2017
MaxOne Hayam Wuruk N/A Hayam Wuruk Central Jakarta 120 2017
POP! Hotel Wahid Hasyim N/A Wahid Hasyim Central Jakarta 150 1Q 2019
POP! Hotel Gajah Mada N/A Gajah Mada Central Jakarta 90 1Q 2020
Hotel Demand
The ruling government announced a plan to reform 89 regulations, aiming to boost national economic growth. All business sectors have been in tight budget policy including the oil and mining industry, which experienced this situation long before the weakening economy took place.
In general, the hotel market in Jakarta is struggling from tighter competition and the slowing demand as a result of corporation’s efficiency measures. The government spending on MICE activity, which has been the major propellant for hotel revenue, is not yet back to normal.
The third quarter 2015 was the period of Islamic fasting month, Ramadhan. During this month which was ahead to another big festive, Eid Mubarak are identic to the slow business. Based on data from Statistic Bureau Indonesia, the number of passengers coming to Indonesia through Soekarno-Hatta International airport by along 2015 YTD was recorded at 1,237,352 passengers, declined significantly by 5.20% compared to the same period last year.
Number of Passengers Through Soekarno – Hatta,
Ngurah Rai and Juanda Airports
Source: Statistics Bureau Office (BPS)
Performance
The mandatory use of rupiah as stipulated in the Central Bank’s regulations has affected the hotel industry in general. Some hotels operated by international hotel chains have to convert room prices into local currency. Room tariffs published on the website may be quoted in US dollars because a universal currency, i.e. the US dollar, is still needed for international guests. Most hotels have posted hotel room tariffs in rupiah for any free independent traveller who comes directly to the hotel.
Occupancy
Approaching the fasting month of Ramadhan and Eid Festival, hotel occupancy during 3Q 2015 slowed. In this period, overall hotel occupancy in Jakarta area dropped slightly by 1.2% to 57.2%, while occupancy in the CBD alone slumped 2.5% to 58.6%. Hotel occupancy in the outside CBD area in the same period was stable at 56.2%.
Looking at the monthly occupancy data provided by STR Global, during June - July 2015, the occupancy of all classes of hotels in Jakarta dropped by 2.5% on average. Occupancy improved in August, approximately two weeks after the Eid Fitr holiday. Looking at the occupancy performance by area, both the CBD area and outside CBD area saw a declining growth QoQ. Meanwhile, the QoQ occupancy for luxury class hotels in Jakarta plunged almost 4.0%, to 57.1% which was the biggest drop in the CBD area. The second biggest drop was at upscale class hotels by 2.5% bringing the occupancy to 62.1%. As for upper upscale class, upper midscale and midscale class hotels, the occupancy slightly declined by 1.6 and 1.7% to 62.1 and 58.4%.
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2008 2009 2010 2011 2012 2013 2014 20 15 YT D
Soekarno - Hatta Ngurah Rai Juanda
The same conditions occurred in the outside CBD area where the occupancy for upper upscale class hotels fell by 2.9%, while the upscale class hotels in this area slightly increased by less than 1% compared to 2Q 2015.
Average Occupancy Rate Jakarta
Source: STR Global 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 1Q 2015 2Q 2015 3Q 2015 Jakarta CBD Outside CBD
Average Occupancy Rate CBD Jakarta
Source: STR Global 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 1Q 2015 2Q 2015 3Q 2015
Average Daily Rate
The trend of weakening occupancy was in line with the performance of hotel revenue as reflected in the Average Daily Rate (ADR). The overall ADR of hotels in Jakarta experienced a very significant decline of 10.2% QoQ. The ADR for CBD and outside CBD hotels experienced the same downward trend with QoQ change of 7.5 and 7.1%, respectively.
Luxury class hotels in the CBD saw the biggest drop of 2.4% in the ADR this quarter to USD191.90. For upper midscale class and midscale class+ hotel, ADR fell by almost 2% in 3Q 2015, which put the ADR at USD66.60. The ADR for upper-class hotels was USD 76.50, down 1.4% compared to 2Q. Upper upscale class hotels in the CBD Jakarta experienced the least decline of only 0.18% that kept the ADR relatively stable at USD121.57.
In the outside CBD Jakarta, the upscale class hotels experienced a moderate change of 0.69% bringing the ADR to USD58.64, lower than 2Q 2015. Meanwhile, the upper upscale class hotels in outside CBD showed a similar drop of only 0.68% in 3Q 2015 which stabilised the ADR at USD79.24.
The continued hotel development that is taking place in Jakarta has affected the overall hotel industry, particularly the overall occupancy rate and ADR. In most cases, in anticipation of such tight competition among hotels, especially low-cost hotels and newly operating hotels, they maintain occupancy levels by giving more discounts which may affect the whole ADR performance. In particular, during the Islamic festivities when business activity softens, quite a few hotel operators provided discount packages and competitive rates. This may be a good explanation of the ADR decline in Jakarta. Aside from that, the weakening of the rupiah, has also contributed to the overall slump in the ADR.
Average Occupancy Rate Outside CBD Jakarta
Source: STR Global 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 1Q 2015 2Q 2015 3Q 2015
Upper Upscale Upscale
Average Daily Rate Jakarta
Source: STR Global
Average Daily Rate CBD Jakarta
Source: STR Global USD 0.00 USD 20.00 USD 40.00 USD 60.00 USD 80.00 USD 100.00 USD 120.00 USD 140.00 2013 2014 1Q 2015 2Q 2015 3Q 2015 Jakarta CBD Outside CBD USD 0.00 USD 40.00 USD 80.00 USD 120.00 USD 160.00 USD 200.00 2013 2014 1Q 2015 2Q 2015 3Q 2015
Average Daily Rate Outside CBD Jakarta
Source: STR Global USD 0.00 USD 10.00 USD 20.00 USD 30.00 USD 40.00 USD 50.00 USD 60.00 USD 70.00 USD 80.00 USD 90.00 2013 2014 1Q 2015 2Q 2015 3Q 2015About Colliers International
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colliers.com
Primary Authors:
Ferry Salanto
Associate Director | Jakarta 62 21 521 1400 ext 134 [email protected]
Colliers International Indonesia
World Trade Centre 10th & 14th floor Jalan Jenderal Sudirman Kav. 29 - 31 Jakarta 12920 Indonesia TEL 62 21 3043 6888
