Colliers Quarterly

Q3 2017
3 October 2017
Accelerating success

JAKARTA | HOTEL

Hotel Sector Hotel Supply

Ferry Salanto Senior Associate Director | Research Star-rated Hotel

In general, the number of new hotel supplies in Jakarta for
Hotel occupancy performance in the third quarter of the
the entire 2017 is quite limited. Jakarta only saw one new
year was the best for the last three years for the same
four-star hotel (Verse Luxe Wahid Hasyim) coming to the
period. Thus far, the number of additional hotel rooms
market in Q3 2017.
was quite limited at least until Q3 2017, but would prob-
ably inflate at the end of the year, albeit still lower than
Up to the end of Q3 2017, the total room supply registered
last year’s figure. The ADR has stabilised and is still in
at 39,430, consisting of 11,250 three-star hotel rooms,
the same line with the previous trend, only that it has
15,337 four-star hotel rooms and 12,843 five-star hotel
not exceeded the figures over the last three years.
rooms. The total supply for 2017 is 70% lower than last
year’s figure, with only 462 rooms.
Forecast at a glance
Demand Cumulative Supply of Star-rated Hotel
Demand continues to be dominated by corporate Projects in Jakarta
guests for business purposes, which will main- 100
tain higher occupancy on weekdays. As 2018
90
will be recognised as a political year, demand
for hotel rooms will be propelled by increasing 80
activities from political parties for internal con- 70
solidation, as well as the big event – the Asian
60
Games 2018, which will be held in Jakarta and
Palembang. 50

40
Supply 30
Jakarta is expecting 1,767 additional new rooms
20
up to the end of 2017. The supply was still domi-
nated by four-star hotels (three hotels) with 983 10
rooms, followed by three-star hotels (four hotels) 0
with 534 rooms and five-star hotels (one hotel)
2010

2011

2012

2013

2014

2015

2016

2017F

2018F

2019F
2017YTD

with 250 rooms.

Occupancy Rate/AOR
3-star 4-star 5-star
The level of hotel room absorption in Jakarta is
fairly low at 56.5% year-to-date. Both intense po- Source: Colliers International Indonesia - Research
litical activities and the Asian Games next year
might help fuel demand for hotel rooms. How-
ever, given a significant hotel room supply pro-
jection next year, occupancy might still hover at
around the current figure.

Rent/ADR
The year-to-date ADR was recorded at
USD78.46. We anticipate only small increment
in the ADR for 2018 because corporate and
group guests will push room rates down.
Cumulative Supply of Star-rated Hotel Rooms Top 5 Hotel Operator Based on Number of
in Jakarta Projects
20,000

18,000
Accor
16,000

14,000

12,000 Santika Hotel & Resorts

10,000

8,000
Archipelago International
6,000

4,000

2,000 Tauzia Management

0
2010

2011

2012

2013

2014

2015

2016

2017F

2018F

2019F
2017YTD

Marriott International

3-star 4-star 5-star 0 5 10 15 20 25 30

Source: Colliers International Indonesia - Research Source: Colliers International Indonesia - Research

Top 5 Hotel Operator Based on Number of

Rooms

Accor

Archipelago

Santika Hotel & Resorts

Marriott International

Tauzia Management

0 2,000 4,000 6,000 8,000

Source: Colliers International Indonesia - Research

2 Colliers Quarterly | 3 October 2017 | Jakarta | Hotel | Colliers International

 Newly Operating Hotels in Jakarta During 2017
STAR- STR CHAIN SCALE OPENING
HOTEL NAME LOCATION REGION # ROOM
rated RATE TIME
Yello Hotel Manggarai 3-star Undefined Jl Minangkabau South Jakarta 102 Q1
Total 3-star hotel rooms 102

Verse Luxe Wahid Hasyim 4-star Undefined Jl Wahid Hasyim Central Jakarta 120 Q3
Total 4-star hotel rooms 120

Harris Vertu Hotel Harmoni 5-star Upscale Class Hayam Wuruk Central Jakarta 240 Q1
Total 4-star hotel rooms 240
 Total rooms 462
Source: Colliers International Indonesia - Research

Rebranded Hotels in Jakarta During 2017

STAR- YEAR OF NUMBER OF
HOTEL NAME PREVIOUS NAME LOCATION REGION
rated OPERATION ROOMS
Ayana Midplaza Jakarta Intercontinental Jakarta 5-star 1998 Jl Jend. Sudirman Kav. CBD 366
Midplaza 10-11
Source: Colliers International Indonesia - Research

New Pipeline
projected
STAR- STR CHAIN project
HOTEL NAME LOCATION REGION ROOMS completion
ratED SCALE RATE status
TIME
Harper TB Simatupang 3-star Undefined TB Simatupang South Jakarta 180 Under 2017
construction
Des Indes Boutique Hotel by 3-star Undefined HOS Central Jakarta 97 Under 2017
Preference Tauzia Cokroaminoto construction
Ibis Styles TB Simatupang 3-star Upper TB Simatupang South Jakarta 110 Under 2017
Midscale construction
Class
Dalton Jakarta Hotel 3-star Undefined Otto Iskandar East Jakarta 147 Under 2017
Dinata construction
Hotel Pasar Senen 3-star Undefined Pasar Senen Central Jakarta 200 Under 2018
construction
Whiz Prime Hayam Wuruk 3-star Undefined Hayam Wuruk Central Jakarta 130 Under Planning 2018
Hotel by Graha Gatsu Lestari 3-star Undefined Jl Gatot Subroto South Jakarta 100 Under 2018
construction
Total 3-star hotel rooms 964

Aston Titanium Cijantung 4-star Upscale Cijantung East Jakarta 225 Under 2017
Class construction
Swiss-Belhotel Kirana Avenue 4-star Upscale Kelapa Gading North Jakarta 316 Under 2017
- Kelapa Gading Class construction
Holiday Inn Hotel & Resorts 4-star Upper Gajah Mada Central Jakarta 442 Under 2017
Jakarta Gajah Mada Midscale construction
Class
Mercure PIK Avenue 4-star Upscale Pantai Indah North Jakarta 220 Under 2018
Class Kapuk construction
Novotel Cikini 4-star Upscale Cikini Central Jakarta 274 Under 2018
Class construction
aloft   Wahid Hasyim 4-star Upscale Wahid Hasyim Central Jakarta 180 Under Q1 2018
Class construction
continued

3 Colliers Quarterly | 3 October 2017 | Jakarta | Hotel | Colliers International

 New Pipeline
projected
STAR- STR CHAIN project
HOTEL NAME LOCATION REGION ROOMS completion
ratED SCALE RATE status
TIME
continuation
aloft Jakarta Simatupang 4-star Upscale TB Simatupang South Jakarta 180 Under Q4 2019
Class construction
Hilton Doubletree Hotel 4-star Upper Jl Raya Adicipta West Jakarta 200 Under planning 2018
Upscale Kavling 8
aloft Jakarta Simatupang 4-star Upscale TB Simatupang South Jakarta 180 Under Q4 2019
construction
Total 4-star hotel rooms 1,837

Alila - SCBD lot 11 5-star Luxury Class SCBD CBD 250 Under 2017
construction
Park Hyatt Hotel 5-star Luxury Class Kebon Sirih Central Jakarta 150 Under Q1 2018
construction
InterContinental Jakarta 5-star Luxury Class Pondok Indah South Jakarta 300 Under 2018
Pondok Indah Hotel & construction
Residences
Regent 5-star Luxury Class Gatot Subroto CBD 160 Under 2018
construction
St Regis 5-star Luxury Class HR Rasuna Said CBD 280 Under Q1 2019
construction
The Langham District 8@Lot 5-star Luxury Class SCBD CBD 200 Under 2019
28 SCBD construction
Waldorf Astoria 5-star Luxury Class Thamrin CBD 181 Under 2020
construction
Rosewood Jakarta 5-star Luxury Class Satrio CBD 200 Design 2020
Total 5-star hotel rooms 1,721
Total rooms 4,522
Source: Colliers International Indonesia - Research, STR

Budget Hotel Cumulative Supply of Budget Hotel Projects

in Jakarta
Since the operation of Amaris hotel in Mampang, South Ja-
karta with 90 rooms in early 2017, the number of budget 7,000
hotels has been stagnant at 5,916 rooms, from the opera-
tion of 50 hotel projects. However, there is a possibility to 6,000
see additional hotel rooms at the remainder of 2017 should
the completion time is set as scheduled. There will be three 5,000
new economy class hotel projects in Q4 2017, totalling 260
rooms in Jakarta. 4,000

3,000

2,000

1,000

0
2017F

2018F

2019F
2010

2011

2012

2013

2014

2015

2016

2017YTD

Source: Colliers International Indonesia - Research

4 Colliers Quarterly | 3 October 2017 | Jakarta | Hotel | Colliers International

 Budget Hotel Development Pipelines
PROJECTED
STR CHAIN NO. OF
HOTEL NAME LOCATION REGION PROJECT STATUS COMPLETION
SCALE RATE ROOMS
TIME
Cordela Norwood Not define yet Jl Teuku Cik Ditiro Central Jakarta 40 Under construction Q4 2017
Menteng II No 3
Max One Hayam Wuruk Not define yet Jl Hayam Wuruk Central Jakarta 120 Under construction Q4 2017
NEO Kalideres Midscale Class Jl Peta Barat No. 1, East Jakarta 100 Under construction Q4 2017
Kalideres
Total rooms 322
Source: Colliers International Indonesia - Research, STR

Hotel Demand The government effort to cut spending and save state
budget will continue with the new Presidential Instruction
Business activity is the major driver for the hotel market (4/2017) on the efficiency of goods expenditures of min-
in Jakarta, either from a private corporation or govern- istries/agencies in the implementation of state budget
ment market. As a matter of fact, several hotels still rely on (APBN) for Fiscal Year 2017. This is not good news for the
the government market. The presence of the government hotel industry as government’s spending on hotel accom-
helps boost overall hotel performance, especially in gener- modation will be reduced as well. Several ministries and
ating income from MICE activities. state institutions have already informed their hotel partners
that next year there will be reduction or even cancellation of
The requirement for MICE facilities for the government future events. Other than that, the latest regulation will be
market is quite specific and not every hotel is able to ac- the benchmark budget ceiling limit for next year.
commodate. This market generally demands a room with
a capacity of 50 to 60 pax for a meeting. Besides that, this
market is typically in budget constraint, which is in line with Performance
a Presidential Instruction for government institutions to cut
or save budget when holding outside office activities. Monthly Average Occupancy Rate (AOR)
Based on Area
Back in 2014, the government issued a circular from the
100%
Ministry of Administrative and Bureaucratic Reform Repub-
lic of Indonesia (number 11/2014) about limiting the num- 90%
ber of meetings and activities outside the office, followed by 80%
the issued Presidential Instruction (2/2015) on measures
70%
to save and utilise budget travel expenses and meetings/
consignment of ministry/institution in order to execute the 60%
budget and state expenditure budget year 2015, which rec- 50%
ommends the ministry and/or state institutions to limit their
40%
number of meetings and activities outside the office. This
regulation directly impacts the hotel business, particularly 30%
in the big cities where guests mainly come from the govern- 20%
ment market. Occupancy rate plummeted and thus led to
10%
price correction as well.
0%
To overcome this situation, the government revised the reg-
Feb-17

Mar-17

Apr-17

May-17
Jan-17

Jun-17

Jul-17

Aug-17

ulation and issued another ministerial regulation (6/2015)

on the guidelines for limiting the number of meetings and
activities outside the office, in the framework of efficiency
improvement and working effectiveness. However, the im-
pact on the market was still limited, reflected from the oc-
cupancy figures in the big cities such as Jakarta and Sura-
baya, which has not shown better progress as experienced
prior to 2014.
Jakarta CBD Outside CBD
Source: STR Global
After Eid al-Fitr, business was back to normal as reflected
in the hotel occupancy performance. From June to August
2017, occupancy rose by 18.7% to reach 62.4%, the high-
est so far for the whole year. Occupancy performance for
the rest of 2017 will likely to follow the general trend over
the past three years, which will stabilise until November
and will only drop approaching the year end.

5 Colliers Quarterly | 3 October 2017 | Jakarta | Hotel | Colliers International

Monthly Average Occupancy Rate (AOR) Monthly Average Daily Rate (ADR) Jakarta
Jakarta Hotel Market Hotel Market
100% USD140.00

90%
USD120.00
80%

70% USD100.00

60% USD80.00
50%
USD60.00
40%

30% USD40.00

20%
USD20.00
10%

0% USD0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016 2017 2014 2015 2016 2017

Source: STR Global Source: STR Global

Monthly Average Daily Rate (ADR) Based on 2018 will provide hope for the hotel market particularly in
Area Jakarta and Palembang, as the next Asian Games will be
held in both cities. Jakarta and Palembang are progress-
USD140.00
ing with infrastructure works, particularly the construction
of LRT, roads and even the Jakarta MRT, which is under-
USD120.00
way. The infrastructure works, however, could negatively
USD100.00
impact the surrounding hotels. For example, several trans-
portation infrastructures are underway in the TB Simatu-
USD80.00 pang and Pondok Indah areas creating horrendous traffic
problems. Hotels in those areas are somewhat affected,
USD60.00 but the projects under construction should provide a better
situation for the business in those areas.
USD40.00

USD20.00

USD0.00
Feb-17

Mar-17

Apr-17

May-17
Jan-17

Jun-17

Jul-17

Aug-17

Jakarta CBD Outside CBD

Source: STR Global

The month-on-month ADR figures in Jakarta has been rel-

atively stable. However, the overall market is considered
low, compared to the previous past years’ performances.
Amidst tight competition, hoteliers tend to maintain their
current room rates in order to offer an attractive package.

6 Colliers Quarterly | 3 October 2017 | Jakarta | Hotel | Colliers International

For more information: Contributors:
Ferry Salanto Nurul Soraya
Senior Asociate Director | Research Senior Research Executive | Research
+62 21 3043 6888
ferry.salanto@colliers.com

Copyright © 2017 Colliers International.

The information contained herein has been obtained from
sources deemed reliable. While every reasonable effort has
been made to ensure its accuracy, we cannot guarantee it.
No responsibility is assumed for any inaccuracies. Readers
are encouraged to consult their professional advisors prior to
acting on any of the material contained in this report.

Accelerating success