Quarterly | Hotel | Jakarta | 5 January 2022

Will Omicron be the new obstacle?

Insights & recommendations

2021 has been a roller coaster year for the hotel industry in Jakarta. Conditions at the beginning
of the year looked promising but, due to an increase in Covid cases, government finally had to
implement a strict PPKM (public activity restrictions) in July. As a result, the performance of hotels
declined drastically. As conditions improved, government began to loosen the PPKM and activities
resumed but, at the end of the year, a new variant emerged which might be another stumbling
block for the hotel industry.
Many hotels in Jakarta will be focusing more on MICE business, whilst the surrounding regions
(BODETABEK) will also share the same market segment. However, support areas will also share
the leisure and Staycation sectors better outside Jakarta.

2021–25
Q4 2021 Full Year 2021 Annual Avg.

Conditions are gradually improving, supply is

expected to increase. 153 rooms 665 rooms 438 rooms
Supply

Annual Avg
QOQ/ YOY/ Growth 2021–25/
End Q4 End 2021 End 2025

Occupancy will increase as more activities 2.5% 11.1%

restart. However, it’s necessary to be
11.6%
Occupancy vigilant so that there is no spike in cases 48.3% 52.2%
which will stop activities.

5.4% 7.6%
Room rate trends are positive but are slower
4.1%
to bounce back than occupancy.
Room rates USD48.5 USD52.2

Source: Colliers Indonesia. Note: IDR 14,267 = USD 1.00

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Supply
During 2020 – 2021, the average growth of new
room supply in Jakarta was 346 rooms. The
average new room supply growth between 2015
– 2019 was 770 rooms.
Throughout 2021, the supply of new hotels in
Jakarta was quite high. There were four new
hotels, two 4-star hotels and two 5-star hotels,
plus one 5-star hotel being rebranded. Currently,
conditions in the hospitality sector have not fully
returned to normal, but have improved.
Cumulative hotel projects
Source: Colliers Indonesia
Cumulative hotel rooms
Source: Colliers Indonesia
Performance
In early 2021, the outlook for the hotel industry
in Jakarta looked promising. There was a marked
increase in occupancy rates. However, in the
middle of the year there was an increase in
Covid-19 cases which forced the government to
implement PPKM. This means that community
mobility was again limited with one of the
impacts being a significant reduction in
occupancy rates.
Monthly AOR
Source: STR
Monthly ADR
Source: STR
As conditions began to improve, the government
began to loosen the PPKM. This makes people's
mobility increase again, activities at the hotel
slowly begin to increase. MICE activities are
starting to be active, the government has started
to hold many activities, especially meetings at
hotels and it follows several activities from the
corporate several weddings have also started to
get busy. The number of foreign tourist arrivals
through Soekarno-Hatta airport has also begun
to increase. As a result, occupancy also
increases. In addition, several hotels in Jakarta
also benefit from having repatriated guests
staying. However, there are things to be aware
of. With the increase in hotel demand (either
from repatriated guests and other activities at
the hotel) the occupancy rate increases, if the
inflow from abroad is higher and activities by
corporations are higher, there are concerns
about difficulties in getting a room.
The number of foreign tourists arrival to
Indonesia through Soekarno-Hatta
International Airport by month
Source: Central Bureau of Statistics
This can be seen from the occupancy rate trend
which continued to increase from last August. In
terms of occupancy in 2021, although there is
still a gap, it has started to approach the
performance in 2019. However, improvement in
ADR has tended to be slower.
The discovery of a new variant that has begun to
spread in several countries made the
government tighten up on international arrivals
and impose a ban on entry from 11 countries,
namely South Africa, Botswana, Namibia,
Zimbabwe, Lesotho, Mozambique, Eswatini,
Malawi, Angola, Zambia, and Hong Kong.
The quarantine process which was originally only
3 days has now become 10 days. For Indonesian
citizens who do not have a history of visiting
these 11 countries in the last 14 days, the
quarantine period is 10 days whilst, for
Indonesian citizens who have a history of visiting
such countries in the last 14 days, the quarantine
period is 14 days. As at the date of writing, no
new regulations have been issued by the
government regarding the prevention of the
spread of Covid-19. However, due to existing
cases, it is considering extending the quarantine
duration to 14 days.
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Appendix
Newly Finished Projects
STR
Opening
Hotel Name Equivalent Location Region #Rooms
Time
Rate

4-star

Sutasoma Hotel Undefined Jl Dharmawangsa South Jakarta 111 Q1 2021

Hilton Garden Inn Jl. Taman Palem

Upscale Class West Jakarta 168 Q3 2021
Taman Palem Lestari

5-star

The Langham Jakarta Luxury Class SCBD CBD 223 Q3 2021

The Orient Hotel

Undefined Jl Jend Sudirman CBD 153 Q4 2021
Jakarta

Source: Colliers Indonesia

Rebranding hotel in 2021

Hotel Name Previous Name YOP Location Region #Rooms

5-star

Artotel Suite
Crowne Plaza 1995 Jl. Jend. Gatot Subroto South Jakarta 351
Mangkuluhur
Source: Colliers Indonesia

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 For further information, please contact:
Nurul Yonasari Ferry Salanto
Senior Research Executive | Senior Associate Director |
Research | Jakarta Research | Jakarta
62(21) 3043 6728 62(21) 3043 6730
Nurul.Yonasari@colliers.com Ferry.Salanto@colliers.com

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