Hotel Sector
Tourism Highlights
For the last years, the Indonesian government has put great effort into accelerating the growth of the tourism industry. The Ministry of Tourism has secured the highest budget for this sector in 2016, particularly through the tagline “Wonderful Indonesia” that has gained world recognition by winning three out of six categories from the United Nations World Tourism Organization (UNWTO). Thus far, the government has been on the right track by also achieving the World Halal Tourism Award, i.e. the award for the Best Halal Tourist Destination and the Best Halal Honeymoon Destination for Lombok, West Nusa Tenggara Province. At the hoteliers’ level, Best Family-Friendly Hotel went to Sofyan Hotel. We also noted that Indonesia is one of the chosen destinations for Middle East tourists and is expecting 12 million visits.
Supply
At the end of 2014, the owner of the Four Seasons hotel announced its closure due to demolition of the hotel. The owner will rebuild new hotel which will be in operation in 2019. The new project is now under construction and when it is completed, St. Regis will manage the hotel. St. Regis was supposed to manage the new hotel in Jalan Jenderal Gatot Subroto but it has now been confirmed that it will be managed by Four Seasons.
Although hotel performance slightly improved during the last quarter of 2015, the overall performance was still below that in 2014.
During Q1 2016, there was only one new 3-star hotel in Jakarta, i.e. A One Hotel which is part of Cemara Hotel Group which added 150 rooms to the market. In Q1 2016, all 87 of the 3-star hotels had a total of 10,363 rooms.In the 4-star hotel category, Swiss-Belhotel Group expanded and opened one hotel in the Pondok Indah area. Swiss-Belhotel Pondok Indah provides 159 rooms. This hotel became the third in the Pondok Indah area after Hotel Kristal and Best Western The Bellevue Hotel. This brings the total of rooms at 4-star hotels in Jakarta to 15,355 rooms at 68 hotels. During the Q1 2016, there were no new 5-star hotels in Jakarta, but the supply of new 5-star hotels may increase in mid-year 2016.
Among the big hotel chain operators in Indonesia, Accor is dominating the market in Indonesia followed by Santika Hotel & Resorts and Archipelago International, as depicted in the graph below.
Most Active Hotel Chain Operators in Jakarta
(including Budget Hotel) - Based on Number of
Project
Santika Hotel & Resorts 24% Tauzia Management 7% Archipelago International 24% Swiss-Belhotel International 9% InterContinental Hotel Group 8%
“A One Hotel (a 3–star developed by the Cemara Hotel Group) which added 150 rooms to the market was the only hotel completed during the quarter. As of Q1 2016 the total hotel room supply for star rated and budget hotels was 42,014 rooms. The YoY overall occupancy in Jakarta area dropped quite significantly by 14.6%, putting the AOR at 49.5% - the lowest since 2013. In contrast with the AOR figure, hotels in Jakarta overall experienced a slight increase in ADR by 2.0% YoY by the end of Q1 2016 from USD80.59 to USD82.18. In the CBD, the ADR dropped slightly by 2.3% to USD120.28 and the ADR for hotels outside the CBD increased quite significantly by 5.9% to USD57.97.”
Research &
Forecast Report
Jakarta | Hotel
Q1 2016
Cumulative Supply of Star-Rated Hotel Projects in
Jakarta
Source: Colliers International Indonesia - Research
Cumulative Supply of Star-Rated Hotel Rooms in
Jakarta
Source: Colliers International Indonesia - Research 0 10 20 30 40 50 60 70 80 90 100 20 10 20 11 20 12 20 13 20 14 20 15 20 16Y TD 20 16F 20 17 F 20 18F 20 19 F
3-star 4-star 5-star
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 16Y TD 20 16F 20 17 F 20 18F 20 19 F
3-star 4-star 5-star
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 Q2 2016 Yello Hotel Hayam Wuruk 3-star N/A Hayam Wuruk Central Jakarta 372 Q3 2016 Harper TB Simatupang 3-star N/A TB Simatupang South Jakarta 180 Q3 2016 Holiday Inn Express Cikini 3-star Upper Midscale
Class Cikini Central Jakarta 212 2016
Whiz Prime Hayam Wuruk 3-star N/A Hayam Wuruk Central 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 Ibis Styles Tanah Abang 3-star Midscale Class 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 Senen Central Jakarta 200 2017
Santika TB Simatupang 3-star Upper Upscale
Class TB Simatupang South Jakarta 160 Q1 2018 Total 3-star hotel rooms 2,162
Swiss-Belhotel - Kelapa Gading 4-star Upper Midscale
Class Kelapa Gading North Jakarta 316 Q2 2016 Mercure Cikini 4-star Upper Midscale
Class Cikini Central Jakarta 207 Q2 2016 Swiss-Belhotel Rasuna Epicentrum 4-star Upper Midscale
name of development ratedstar str global equivalent
rate location region
no. of rooms projected completion time continuation
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
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 Upper 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 Q1 2017
Batiqa Cassablanca 4-star N/A Kasablanka South Jakarta 156 Q1 2017
Novotel Cikini 4-star Upscale Class Cikini Central Jakarta 286 Q2 2017
Oyama Centre 4-star N/A Yos Sudarso North Jakarta 160 Q3 2017
Mercure Matraman 4-star Upper Midscale
Class Matraman South Jakarta 150 Q3 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
Morrissey Hotel 4-star N/A Wahid Hasyim Central Jakarta 343 2017
Mercure Kemang 4-star Upper Midscale
Class Kemang South Jakarta 80 Q1 2018
Hotel @Perintis - South Tower 4-star N/A Mega Kuningan CBD 112 2018 Total 4-star hotel rooms 5,426 The Westin Jakarta@Gama Tower 5-star Upper Upscale
Class Rasuna Said CBD 283 Q2 2016
InterContinental Jakarta Pondok Indah Hotel &
Residences 5-star Luxury Class Pondok Indah South Jakarta 470 Q2 2016
Four Seasons 5-star Luxury Class Rasuna Said CBD 365 Q3 2016
Alila - SCBD lot 11 5-star Upper Upscale
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 Q4 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 Q4 2018
Sofitel 5-star Luxury Class Mega Kuningan CBD 212 2018
Regent 5-star Luxury Class Gatot Subroto CBD 127 2018
Rosewood Jakarta 5-star Luxury Class Satrio CBD 200 2018
St Regis 5-star Luxury Class Gatot Subroto CBD 125 Q1 2019
Waldorf Astoria 5-star Luxury Class Thamrin CBD 181 2019
Total 5-star hotel rooms 2,927 Total star hotel rooms 10,515
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
Amaris Pluit Economy Class Pluit Raya North Jakarta 112 Q2 2016
Oak Tree N/A Wahid Hasyim Central Jakarta 120 Q2 2016
Fame Hotel N/A Grand Cakung Mall East Jakarta 97 Q3 2016
Cordela Hotel N/A Kramat Raya Central Jakarta 70 Q3 2016
Amaris Tanah Abang Economy Class Tanah Abang Central Jakarta 79 Q3 2016
Whiz - Cipete N/A Cipete South Jakarta 180 2016
NEO Kebayoran Midscale Class Kebayoran Lama South Jakarta 102 2016 POP! Hotel Pasar Baru Economy Class Pasar Baru Central Jakarta 112 2016
Luminor N/A Pecenongan Central Jakarta 199 2016
Amaris Slipi Economy Class Letjen S Parman West Jakarta 146 Q2 2017
Ibis Budget Jaksa Economy Class 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 Q1 2018
POP! Hotel Wahid Hasyim Economy Class Wahid Hasyim Central Jakarta 150 Q1 2019 Total budget hotel rooms 1,786
Performance
In early 2016, Jakarta was struck by bomb and gun attacks but the situation was immediately under control. It had a short time effect on the business climate in Jakarta with an insignificant
Budget Hotel
Recent times have been slow for budget hotels with only one new hotel opening during Q1 2016. Amaris Hotels, a member of Santika Hotel & Resorts has just opened the Amaris Satrio in the CBD area. The hotel provides 54 rooms bringing the total of rooms at budget hotels in Jakarta to 4,967.
0 10 20 30 40 50 60 20 10 20 11 20 12 20 13 20 14 20 15 20 16 … 20 16F 20 17 F 20 18F 20 19 F
Average Occupancy Rate Jakarta
Source: STR Global
Occupancy
The first quarter of each year has always been a challenging period for the hotel industry, particularly when the outlook is not that great. The Year-to-Date (YTD) overall occupancy in the Jakarta area dropped quite significantly by 14.6%, putting the AOR at 49.5% the lowest since 2013. The biggest drop of 16.4% occurred in the CBD, bringing the AOR to 49.9%. Similarly, albeit with a lower decline of 13.4%, the AOR for hotels in outside the CBD was recorded at 51.0% in 1Q 2016.
The AOR of luxury class hotels, which are mainly found in the CBD area, underperformed by 18.2% as of Q1 2016, dropping to 47.0%.
Similarly, a declining trend in the occupancy rate also took place in outside the CBD area for all classes of hotels. In the upper upscale class, the AOR was down significantly by 24.5% from 62.9% to 47.5%. In the upscale class, the AOR dropped by 11.5% to 55.6%. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016YTD Jakarta CBD Outside CBD
Average Occupancy Rate in CBD
Source: STR Global
Average Occupancy Rate in Outside the CBD
Source: STR Global 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016YTD
Luxury Class Upper Upscale Class Upper Midscale & Midscale Classes+
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016YTD
Average Daily Rate
In contrast with the AOR figure, overall, hotels in Jakarta experienced a slight increase in ADR by 2.0% YoY during Q1 2016 from USD80.59 to 82.18. In the CBD area, the ADR dropped slightly by 2.3% to USD120.28 and the ADR for hotels outside the CBD increased quite significantly by 5.9% to USD57.97.
The ADR for luxury class hotels in the CBD area decreased by 7.7% YoY, dropping it to USD175.74. Despite being lower YoY, the ADR for upper upscale class was better, down 1.4%, bringing the figure for this quarter to USD119.17. The upscale class hotels maintained the ADR level at USD75.61. The upper midscale and midscale classes+ experienced a 7.7% decrease, which pushed the ADR to USD59.92.
While the ADR of most hotels in the CBD decreased, the ADR in outside the CBD increased quite a bit. The upper upscale class hotels posted an 11.2% increase and lifted the ADR this quarter to USD86.38. The ADR for upscale class hotels eased 10.8% to USD63.32.
For most hoteliers, the beginning of the year might be described as a warm-up period. Particularly at the start of this year, the hotel business was looking for momentum to perform better than last year.
Average Daily Rate Jakarta
Source: STR Global USD0.00 USD30.00 USD60.00 USD90.00 USD120.00 USD150.00 2013 2014 2015 2016YTD 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 2015 2016YTD
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 2015 2016YTD
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colliers.com
Primary Authors: Ferry Salanto
Associate Director | Jakarta 62 21 3043 6730
Ferry.Salanto@colliers.com
Colliers International Indonesia
World Trade Centre 10th & 14th Floors Jalan Jenderal Sudirman Kav. 29 - 31 Jakarta 12920 Indonesia TEL 62 21 3043 6888
