Hotel Sector
Supply
Jakarta, as the capital city of Indonesia, is a magnet for the hotel business. In 2015, several new hotels opened in Jakarta.
Newly Operating Hotels in Jakarta During 2015
hotel ratingstar str global equivalent
rate location region rooms opening time
Swiss-Belinn Springhill Kemayoran 3-star Upscale Kemayoran Central Jakarta 156 1Q
Ibis Harmoni 3-star Midscale Harmoni Central Jakarta 212 1Q
Swiss-Belinn Simatupang 3-star Upscale TB Simatupang South Jakarta 159 3Q
Ibis Styles 3-star Midscale Sunter North Jakarta 145 3Q
Holiday Inn Express 3-star Upper Midscale JIExpo Central Jakarta 243 4Q
Holiday Inn Express Wahid Hasyim 3-star Upper Midscale Wahid Hasyim Central Jakarta 160 4Q
Dafam Teraskita 3-star N/A Cawang East Jakarta 152 4Q
Total 3-star hotel rooms 1,227
Best Western Bellevue 4-star Midscale Pondok Indah South Jakarta 156 1Q
The101 Dharmawangsa 4-star N/A Dharmawangsa South Jakarta 138 1Q
Veranda @Pakubuwono 4-star N/A Pakubuwono South Jakarta 184 2Q
Aston Priority Simatupang Hotel & Conference
Centre 4-star Midscale TB Simatupang South Jakarta 296 3Q
Swiss-Belresidence Kalibata 4-star Upscale Kalibata South Jakarta 212 3Q
Santika Premier Hayam Wuruk 4-star Upper Upscale Hayam Wuruk Central Jakarta 271 4Q
Grandhika 4-star N/A Blok M South Jakarta 239 4Q
Total 4-star hotel rooms 1,496
Raffles Hotel Jakarta 5-star Luxury Mega Kuningan CBD 171 1Q
Fairmont Hotel 5-star Luxury Senayan South Jakarta 380 1Q
Grand Mercure Kemayoran 5-star Upscale Kemayoran Central Jakarta 505 4Q
Sheraton Gandaria City 5-star Upper Upscale Gandaria City South Jakarta 293 4Q
“By the end of 2015, the total room supply of star-rated hotels in DKI Jakarta was 37,648 rooms in 179 hotels. Jakarta is anticipating a substantial amount of new hotel rooms during 2016 – 2018 with additional 10,509 rooms in 51 new hotels. The overall Average Occupancy Rate in DKI Jakarta was recorded at 59.1% which was lower than the 2014 figure of 64.8%. This was the result of the reduced number of corporate guests from the Indonesian government after the regulation that officially banned civil servants from having meeting in hotels. Likewise the Average Daily Rate also dropped YoY from USD95.04 in 2014 to USD82.02 in 2015.”
Ferry Salanto | Associate Director - Research
Research &
Forecast Report
Jakarta | Hotel
Q4 2015
Looking at the development above, South Jakarta area was still the most favourable place for hotel development, especially for 5- and 4-star hotels. Based on star ratings, 4-star hotels dominated the development with 1,496 rooms (seven hotel projects), followed by 5-star hotels with 1,349 rooms (four hotel projects) and 3-star hotels with 1,227 rooms (seven hotel projects).
Cumulative Supply of Star-Rated Hotel Rooms in
Jakarta
Source: Colliers International Indonesia - Research
Cumulative Supply of Star-rated Hotel Projects in
Jakarta
Source: Colliers International Indonesia - Research
By the end of 2015, the total room supply in Jakarta was dominated by 4-star hotels with 15,046 rooms (11.04% YoY growth), followed by 5-star hotels with 12,191 rooms (8.78% YoY growth) and 3-star hotels with 10,411 rooms (13.36% YoY growth).
Hotel Developments in Pipeline
hotel ratingstar str global equivalent
rate location region rooms
projected completion
time
Harper Cawang Hotel & Conference Center 3-star N/A Cawang East Jakarta 108 1Q 2016
Yello Hotel Hayam Wuruk 3-star N/A Hayam Wuruk Central Jakarta 372 3Q 2016
Holiday Inn Express Cikini 3-star Upper Midscale
Class Cikini Central Jakarta 212 2016
Prima Hotel 3-star N/A Wahid Hasyim Central Jakarta 150 2016
Whiz Prime Hayam Wuruk 3-star N/A Hayam Wuruk Central Jakarta 100 2016
A One Hotel Jakarta 3-star N/A Wahid Hasyim Central Jakarta 200 2016
Citylight - 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
Holiday Inn Express Simatupang 3-star Upper Midscale
Class TB Simatupang South Jakarta 200 2016
Ibis Styles Jakarta PIK 3-star Midscale Class Pantai Indah Kapuk North Jakarta 200 2016
Hotel @ Tanah Abang 3-star N/A Tanah Abang Central Jakarta 225 2017
Grand Zuri Mangga Dua 3-star N/A Mangga Dua Central Jakarta 130 2017
Hotel Pasar Senen 3-star N/A Pasar Senen Central Jakarta 200 2017
Santika TB Simatupang 3-star Upper Upscale
Class TB Simatupang South Jakarta 160 1Q 2018
Total 3-star hotel rooms 2,432
Continued 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 20 16F 20 17 F 20 18F 20 19 F
3-star 4-star 5-star 0 10 20 30 40 50 60 70 80 90 100 20 10 20 11 20 12 20 13 20 14 20 15 20 16F 20 17 F 20 18F 20 19 F
name of development ratedstar str global equivalent
rate location region
no. of rooms projected completion time continuation
Aston Gajah Mada Hotel & Convention Center 4-star Upscale Class Gajah Mada Central Jakarta 192 1Q 2016
Prima Hotel 4-star N/A KH Wahid Hasyim Central Jakarta 150 1Q 2016
Holiday Inn Hotel & Resorts Jakarta Gajah Mada 4-star Upper Midscale
Class Gajah Mada Central Jakarta 447 1Q 2016
Swiss-Belhotel Rasuna Epicentrum 4-star Upscale Class Rasuna Epicentrum South Jakarta 323 2Q 2016
Harris Hayam Wuruk 4-star Upscale Class Hayam Wuruk Central Jakarta 238 3Q 2016
Aston Titanium Cijantung 4-star Upscale Class Cijantung East Jakarta 225 2016
Aston Kemayoran 88 4-star Upscale Class Kemayoran Central Jakarta 200 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
Grand Whiz Poin Square 4-star N/A Lebak Bulus South Jakarta 132 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
aloft Kebon Jeruk 4-star Upscale Class Kebon Jeruk West Jakarta 140 1Q 2017
Batiqa Cassablanca 4-star N/A Kasablanka South Jakarta 156 1Q 2017
Novotel Cikini 4-star Upscale Class Cikini Central Jakarta 286 2Q 2017
Oyama Centre 4-star N/A Yos Sudarso North Jakarta 160 3Q 2017
Mercure Matraman 4-star Upscale Class Matraman South Jakarta 150 3Q 2017
Horison Ultima Jakarta 4-star N/A Cawang East Jakarta 156 2017
Grand Whiz Hotel Sunter 4-star N/A Sunter North Jakarta 160 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 150 2017
Mercure Kemang 4-star Upscale Class Kemang South Jakarta 80 1Q 2018
Hotel @Perintis - South Tower 4-star N/A Mega Kuningan CBD 112 2018
Total 4-star hotel rooms 5,279
The Westin Jakarta@Gama Tower 5-star Luxury Class 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 2Q 2016
Alila - SCBD lot 11 5-star Luxury Class SCBD CBD 250 2016
JW Marriott @St Moritz 5-star Luxury Class Puri Indah West Jakarta 208 2016
Aryaduta - Holland Village 5-star Upscale Class Cempaka Putih Central Jakarta 180 4Q 2017
The Langham District 8@Lot 28 SCBD 5-star Luxury Class SCBD CBD 200 2017
W Hotel @Ciputra World Jakarta 2 5-star Luxury Class Satrio CBD 126 2018
Sofitel 5-star Luxury Class Mega Kuningan CBD 212 2018
Four Seasons (after renovation) 5-star Luxury Class Rasuna Said CBD 365 2018
Regent 5-star Luxury Class 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
Total 5-star hotel rooms 3,132 Total star hotel rooms 10,843
Budget Hotel
Budget hotel development in Jakarta was slow. Based on our data, there were only four new budget hotels entering the Jakarta market in 2015.
The Cabin Hotel in North Jakarta area added 132 rooms to the supply and MaxOne Hotels added two properties in Jakarta. MaxOne Pemuda, in the East Jakarta area added 105 rooms to the supply, while MaxOne Glodok, in the North Jakarta area added 100 rooms. Favehotel, a member of the Archipelago family entered the market, adding 84 rooms to the supply.
In total, there were 421 rooms added during 2015. By the end of 2015, there were 4,818 rooms in the Jakarta budget hotel market, an increase of only 6.52% YoY.
Cumulative Supply of Budget Hotel (Economy Class)
in Jakarta
Source: Colliers International Indonesia - Research
Source: Colliers International Indonesia - Research and STR Global
Budget Hotel (Economy Class) Developments in the Pipeline
hotel equivalent ratestr global location region rooms completion projected time
POP! Hotel Pasar Baru N/A Pasar Baru Central Jakarta 112 1Q 2016
Amaris - Satrio N/A Satrio CBD 54 1Q 2016
Luminor N/A Pecenongan Central Jakarta 199 1Q 2016
Amaris Pluit N/A Pluit Raya North Jakarta 112 2Q 2016
Oak Tree N/A Wahid Hasyim Central Jakarta 120 2Q 2016
Fame Hotel N/A Grand Cakung Mall East Jakarta 97 3Q 2016
Cordela Hotel N/A Kramat Raya Central Jakarta 70 3Q 2016
Whiz - Cipete N/A Cipete South Jakarta 180 2016
NEO Kebayoran N/A Kebayoran Lama South Jakarta 102 2016
Amaris Slipi N/A Letjen S Parman West Jakarta 146 2Q 2017
Ibis Budget Jaksa N/A Jaksa Central Jakarta 99 2017
MaxOne Hayam Wuruk N/A Hayam Wuruk Central Jakarta 120 2017
Whiz Hayam Wuruk N/A Hayam Wuruk Central Jakarta 200 1Q 2018
POP! Hotel Wahid Hasyim N/A Wahid Hasyim Central Jakarta 150 1Q 2019
POP! Hotel Gadjah Mada N/A Gajah Mada Central Jakarta 90 1Q 2020
Total budget hotel rooms 1,761
Demand
The Indonesian government, through the Ministry of Tourism, set a target of about 10,000,000 international visitors by the end of 2015. Data from the Statistics Bureau shows that 1,900,459 visitors landed at Soekarno – Hatta International Airport up to October 2015, a 1.3% increase YoY. Based on overall foreign visitors coming to Indonesia, 3.36% of them landed in Jakarta.
From January to October 2015, 8,016,589 tourists landed in Indonesia. With the positive growth, there is the possibility that the number targeted by the government will be achieved. Demand for hotel accommodation in the Jakarta area is mainly for business purposes. However, any MICE activity, like annual concerts and sporting events are two examples of the potential market for the hotel industry in Jakarta.
0 10 20 30 40 50 60 20 10 20 11 20 12 20 13 20 14 20 15 20 16F 20 17 F 20 18F 20 19 F
Number of Passengers through Soekarno – Hatta
Airport, Ngurah Rai and Juanda Airports
Source: Statistics Bureau Office (BPS)
Performance
There were several events that had quite a significant effect on the hotel industry in 2015. At the end of 2014, a government policy banned government institutions from holding meetings and conferences in hotels and convention centres. As a result, the hotel industry was struggling, particularly in 1Q 2015. The growth of hotel development in Jakarta was quite rapid in the last few years, nevertheless, the growth of development did not follow the demand growth as reflected in the weakening occupancy level.
The last event that had an effect on the hotel industry in general was the mandatory use of rupiah as stipulated by the Central Bank regulations. Some hotels operated by international hotel chain operators had to adjust room rates into local currency. Room rates published on their websites may be quoted in US dollars because it is the universal currency understood by international guests. Most hotels use room rates in rupiah with any independent traveller who comes directly to the hotel.
Average Occupancy Rate Jakarta
Source: STR Global
Besides the city centre, the airport and surrounding area has the greatest potential for hotel development. There is quite rapid hotel development, especially in the area surrounding Soekarno – Hatta International Airport. Various star-rated hotels have built in that area and are attracting transit passengers who have to catch early morning flights.
The facilities offered by airport hotels are the same as at other hotels. Some of them offer meeting rooms and swimming pools, and most of them provide an airport shuttle, which is the added value of hotels located in the area surrounding the airport.
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 20 11 20 12 20 13 20 14 20 15 YT D
Soekarno - Hatta Ngurah Rai Juanda
Occupancy
Hotel performance moved up modestly at the end of 2015. By 4Q 2015, the occupancy of the Jakarta hotel market in general had increased by 2.7% to 59.1%. The positive growth occurred both in the CBD and outside the CBD. The highest growth was in outside the CBD area with 3.5%, while the CBD occupancy rate increased by only 1.6%.
Looking at the CBD hotel market, upper midscale and midscale class + hotel performance experienced the highest growth with a 3.4% increase. The lowest growth in the CBD hotel market was in the luxury class hotel market at 0.7%.
The small growth in the luxury hotel market was possibly a result of recent economic conditions. The global economic crisis drove many industries to their worst performance all year. As a result, most of them are downsizing their companies, as well as cutting travel expenses and reducing the number of their expatriate staff.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 1Q 2015 2Q 2015 3Q 2015 2015YTD Jakarta CBD Outside CBD
Average Daily Rate
The Average Daily Rate (ADR) of Jakarta hotels was decreasing at the end of 2015. The 4Q 2015 ADR was USD82.02, a 0.15% decrease QoQ. The ADR for hotels in the CBD increased moderately by 1.24% QoQ from USD123.01 to 124.54 and the ADR for hotels outside the CBD increased by 0.98% QoQ from USD54.60 to 55.14.
The ADR of luxury class hotels in the CBD in 4Q 2015 was USD190.88, a 0.33% decrease compared to last quarter. The upper upscale class hotels slightly decreased from USD121.41 to 121.00. The ADR for the upscale class showed a 0.7% decrease from USD76.31 to 75.72. The highest drop was at upper midscale class and midscale class+ hotels at 1.8% from USD66.26 to 65.04. In outside the CBD, the upscale class hotels experienced a 1.9% decrease bringing the ADR to USD57.20. The upper upscale class in outside the CBD Jakarta also dropped 1.8%, bringing the ADR to USD77.31.
On average, the ADR for Jakarta hotels showed an increase. There were many things in 2015 that affected the hotel industry. The continued hotel development 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 try to maintain occupancy levels by giving more discounts, which may affect the overall ADR. In particular, during the Islamic festivities when business activity softens, quite a few hotel operators provide discount packages and competitive rates. This may be a good explanation for the ADR decline in Jakarta. Aside from that, the weakening of the rupiah has also contributed to the overall slump and the downturn in ADR.
Average Occupancy Rate in CBD
Source: STR Global 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 1Q 2015 2Q 2015 3Q 2015 2015YTD Luxury Class Upper Upscale Class Upper Midscale & Midscale Classes+
Average Occupancy Rate in Outside the CBD
Source: STR Global 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 1Q 2015 2Q 2015 3Q 2015 2015YTD Upper Upscale Class Upscale Class
Average Daily Rate Jakarta
Source: STR Global USD0.00 USD30.00 USD60.00 USD90.00 USD120.00 USD150.00 2013 2014 1Q 2015 2Q 2015 3Q 2015 2015YTD Jakarta CBD Outside CBD
Average Daily Rate Outside the CBD Jakarta
Source: STR Global
Average Daily Rate CBD Jakarta
Source: STR Global USD0.00 USD40.00 USD80.00 USD120.00 USD160.00 USD200.00 2013 2014 1Q 2015 2Q 2015 3Q 2015 2015YTD
Luxury Class Upper Upscale Class
Upscale Class Upper Midscale & Midscale Classes+
USD0.00 USD15.00 USD30.00 USD45.00 USD60.00 USD75.00 USD90.00 2013 2014 1Q 2015 2Q 2015 3Q 2015 2015YTD Upper Upscale Class Upscale Class
Primary Authors:
Ferry Salanto
Associate Director | Jakarta 62 21 3043 6730
Ferry.Salanto@colliers.com
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