Revival of luxury and upscale hotel segments in Jakarta
The luxury hotel segment in Jakarta has witnessed a remarkable recovery, reaching occupancy levels comparable to the pre-pandemic era. This resurgence is not just limited to occupancy rates but is also reflected in the revenue per available room (RevPAR), which has seen substantial year-over-year growth.
Upscale and midscale hotels are not far behind, with these segments also experiencing strong RevPAR growth that surpasses pre-pandemic levels. This revival is a testament to the robustness of Jakarta’s hotel industry and its ability to adapt and thrive post-pandemic.
A bright future for Jakarta’s tourism and hospitality industry
Looking ahead, the outlook for Jakarta’s tourism and hospitality industry is overwhelmingly positive. The upcoming 2024 Indonesian general election is anticipated to further fuel this growth, particularly in the corporate sector, leading to increased hotel occupancy due to political activities. Additionally, the resurgence of Chinese outbound tourism is expected to contribute significantly to the industry, maintaining elevated trading performance levels through 2023 and into early 2024.
Implications for property owners and the festive rental market
For current property owners in Jakarta, especially those with serviced apartments, this growth presents a lucrative opportunity. The increasing demand for serviced apartments and the strong performance of the hotel sector suggest that property rentals in Jakarta could become a highly profitable venture.
The festive days, in particular, offer a golden opportunity to maximize rental income, as travelers and corporate clients seek comfortable and convenient accommodations.
