FEBRUARY 28, 2025
MARKET BRIEF
Jakarta Hotel | H2 2024
Jakarta Hotel | H2 2024
The performance of Jakarta's hotel industry remained robust in the second half of 2024, following a strong showing in the first half of the year. The government's mid-November announcement of a 50% budget reduction for state civil servants (ASN) had minimal impact on the city's hotel sector. While hotels that rely heavily on government business were somewhat affected, those with more diverse markets felt less of a strain. Looking ahead to the first half of 2025, hotel performance is projected to continue improving gradually despite uncertain global economic conditions and the government's plan to further reduce the budget for official travel.
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New supply came from two 5-star hotels in Central Jakarta and the CBD area
In the second half of 2024, Jakarta welcomed two new hotels. The 25hours Hotel The Oddbird (5-star), located in District 8, SCBD Lot 28, and directly connected to ASTHA Mall, opened in November. Additionally, Keraton at The Plaza (5-star), part of The Unbound Collection by Hyatt brand, reopened in December. These additions contributed 348 rooms to the city's hotel supply. Nevertheless, the existing hotel landscape continues to be predominantly dominated by 4-star hotels. |
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Average occupancy rates rose to 70.8% in the second semester of 2024
During the second half of 2024, the Jakarta hotel market experienced significant growth compared to the previous semester, with average occupancy rates reaching approximately 70.8%. Government and corporate MICE events continued to play a significant role, alongside business travelers during weekdays and several international music events. Towards the end of the second half of 2024, many people opted to travel out of the city during the holiday season. To counter this, several branded hotels offered Christmas and New Year celebrations, which helped to promote occupancies and staycations. The announcement of a 50% cut in the travel budget had minimal impact, as it was made in mid-November, coinciding with a decline in government MICE activities. |
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Room rates remained relatively stable during the second half 2024
The Average Daily Rate (ADR) of hotels in Jakarta stood at around IDR 850,000 in the second semester of 2024. This figure represents a slight increase of approximately 3.9% compared to the previous semester. Meanwhile, the Revenue Per Available Room (RevPAR) during the same period was approximately IDR 615.000, representing a 24% increase from the first semester of 2024. |
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Total passengers at Soekarno-Hatta International Airport reached 54.8 million in 2024
Throughout 2024, the total number of passengers at Soekarno-Hatta (Soetta) International Airport increased by 7% to 54.8 million. Meanwhile, aircraft movements increased by 4% with 362,643 movements. The top three destinations with the highest number of flights throughout 2024 for domestic routes include Denpasar (DPS), Kualanamu (KNO), and Surabaya (SUB). As for international routes, it is the main connection to Singapore (SIN), Kuala Lumpur (KUL), Jeddah (JED), Doha (DOH), and Hong Kong (HKG). Not only that, Soetta International Airport also transforming to improve the quality of its services, one of which is through the beautification of Terminal 3. This step includes updating the interior design and adding a giant screen that displays Indonesian nuances, as well as other aesthetic elements.. |
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The Ministry of Finance cut 50% of ministries and institutions travel budgets
The government through the Ministry of Finance (Kemenkeu) has officially ratified the regulation regarding reducing the official travel budget by at least 50%. The reduction of the official travel budget is stated in Circular Letter Number S-1023/MK.02/2024. This is done as a budget efficiency especially so that the budget can be used to finance priority government programs. This policy is considered to have a significant impact on the tourism and hotel sectors, especially for hotels with large capacities of convention & exhibition halls, ballrooms, or meeting rooms. |
APPENDIX: ECONOMIC INDICATORS
