Research & Forecast Report Jakarta | Hotel 3Q 2015
Jakarta has a total of four hotels as of 3Q 2015 at three operating hotel projects. Two hotels are operated by Swiss-Belhotel Group, one hotel is operated by Santika Indonesia Hotels & Resorts, and one hotel is operated by Grandhika.
Cumulative Supply of Star Rating Hotel Projects in Jakarta
Hotel Supply
120
The slowdown in business activity characterised the overall hotel market in Jakarta with supply growth only moving forward modestly. There are several hotel projects that are expected to delay their openings. This quarter, new hotel rooms were provided by four 3- and 4-star hotel projects, providing a total of 881 new hotel rooms.
100
Santika Group, the biggest local hotel operator, introduced their latest 4-star hotel project named Santika Premiere Hayam Wuruk with a total of 271 rooms. This hotel is located in at Jl Hayam Wuruk Central Jakarta providing five meeting rooms, and a restaurant in addition to other supporting facilities. SwissBelhotel Group opened their new 4-star hotel in Jakarta called Swiss-Belresidence Kalibata. Located in the South Jakarta area, this hotel has 212 rooms with one restaurant and bakery, eight meeting rooms and one ballroom, a spa and a gym as their supporting facilities. Another new 4-star hotel in South Jakarta area is Grandhika Hotel, owned by one of the state-owned enterprises in Indonesia. This hotel has 239 rooms with eleven meeting rooms, five restaurants and lounges, business centre, swimming pool, spa and gym as their supporting facilities. In total, the total supply of 4-star hotels in Jakarta is 15,046 rooms at 65 hotels.
40
1
80 60
20
3-star
4-star
Source: Colliers International Indonesia - Research
Research & Forecast Report | 3Q 2015 | Hotel | Colliers International
5-star
2019F
2018F
2017F
2016F
2015F
2015YTD
2014
2010
0 2013
There are several hotel projects that are expected to delay their openings. This quarter, new hotel rooms became available in four 3- and 4-star hotel projects, providing a total of 881 new hotel rooms. Overall, hotel occupancy in Jakarta area dropped slightly by 1.2% QoQ to 57.2%, while occupancy in the CBD alone slumped 2.5% to 58.6%. In line with the declining trend in occupancy, the Average Daily Rate (ADR) of hotels in Jakarta dropped quite a bit. Luxury class hotels in the CBD saw the biggest drop of 2.4% to USD191.90, midscale class and midscale class+ hotels fell by almost 2% to USD66.60 and upper-class hotels were down 1.4% to USD76.50.
2012
Highlight
In the 3-star hotel category, Swiss-Belhotel Group added another 159 rooms in the TB Simatupang area, called Swiss-Belinn Simatupang. Having four meeting rooms, this hotel targets corporations operating in TB Simatupang and surrounding areas. The operation of this new hotel increased the cumulative number of 3-star hotel rooms in Jakarta to 9,773 at 75 hotels. The TB Simatupang area already has a 3-star hotel, Swissbell and a 4-star hotel, Aston Priority Simatupang Hotel & Conference in 2015.
2011
Hotel Sector
Accelerating success.
Cumulative Supply of Star Rating Hotel Rooms in Jakarta 21,000 18,000 15,000 12,000 9,000 6,000 3,000
3-star
4-star
2019F
2018F
2017F
2016F
2015F
2015YTD
2014
2013
2012
2011
2010
0
5-star
Source: Colliers International Indonesia - Research
Hotel Developments in Pipeline hotel name
star rating
str global equivalent rate
location
region
rooms
projected completion time
Holiday Inn Express Cikini
3-star
Upper Midscale Class
Cikini Raya,Cikini
Central Jakarta
372
2015
Harper Cawang Hotel & Conference Center
3-star
N/A
Cawang
East Jakarta
108
2015
Hotel @ Tanjung Duren
3-star
N/A
Tanjung Duren
West Jakarta
150
2015
Hotel Santika Rawamangun
3-star
Upper Upscale Class
Rawamangun
East Jakarta
140
2015
Ibis Style Jakarta Sunter
3-star
Midscale Class
Sunter
North Jakarta
150
2015
Menteng Square Hotel
3-star
N/A
Menteng
Central Jakarta
180
2015
Santika TB Simatupang
3-star
Upper Upscale Class
TB Simatupang
South Jakarta
145
2015
Whiz Prime Hayam Wuruk
3-star
N/A
Hayam Wuruk
Central Jakarta
100
2015
Whiz Prime Satrio
3-star
N/A
Satrio
CBD
100
2015
Zuri Express Menteng
3-star
N/A
Menteng
Central Jakarta
159
2015
Holiday Inn Hotel & Resorts Jakarta Gajah Mada
3-star
Upper Midscale Class
Gajah Mada
Central Jakarta
447
1Q 2016
Yello Hotel Hayam Wuruk
3-star
N/A
Hayam Wuruk
Central Jakarta
372
3Q 2016
A One Hotel Jakarta
3-star
N/A
Wahid Hasyim
Central Jakarta
200
2016
Horison Ciputat Jakarta
3-star
N/A
Ciputat
South Jakarta
100
2016
Big Hotel (Extention)
3-star
N/A
Sawah Besar
North Jakarta
75
2016
Ibis Styles Jakarta Bangka Raya
3-star
Midscale Class
Kemang
South Jakarta
200
2016
Ibis Styles Jakarta PIK
3-star
Midscale Class
Pantai Indah Kapuk
North Jakarta
200
2016
Prima Hotel
3-star
N/A
Salemba
Central Jakarta
150
2016
Holiday Inn Express Simatupang
3-star
Upper Midscale Class
TB Simatupang
South Jakarta
200
2016
Hotel @ Tanah Abang
3-star
N/A
Tanah Abang
Central Jakarta
225
2017
Prasanthi Kebon Jeruk
3-star
N/A
Kebon Jeruk
West Jakarta
200
2017
Quest Menteng
3-star
N/A
Menteng
Central Jakarta
199
2017
Citizen M
3-star
Upscale Class
Mega Kuningan
CBD
112
2018 Continued
2
Research & Forecast Report | 3Q 2015 | Hotel | Colliers International
hotel name
star rating
str global equivalent rate
location
region
rooms
projected completion time Continuation
Grand Whiz Hotel Sunter
4-star
N/A
Sunter
North Jakarta
160
2015
Aston Titanium Cijantung
4-star
Upscale Class
Cijantung
East Jakarta
236
2015
Aston Kemayoran 88
4-star
Upscale Class
Kemayoran
Central Jakarta
200
2015
Mercure Jakarta Matraman
4-star
Upscale Class
Matraman
East Jakarta
180
2015
Swiss-Belhotel Rasuna Epicentrum
4-star
Upscale Class
Rasuna Epicentrum, Rasuna South Jakarta Said
323
2015
Grand Clarion
4-star
Upscale Class
Cipinang
East Jakarta
272
2015
Holiday Inn (ex Metropolitan Land office) / Metland Premier Hotel Jakarta
4-star
Upper Midscale Class
Cawang
East Jakarta
156
2015
Mercure Jakarta Kelapa Gading
4-star
Upscale Class
Kelapa Gading
North Jakarta
156
2015
Grand Whiz Poin Square
4-star
N/A
Lebak Bulus
South Jakarta
132
2015
Aston Gajah Mada Hotel & Convention Center
4-star
Upscale Class
Gajah Mada
Central Jakarta
192
2015
Swiss-Belhotel Cikini
4-star
Upscale Class
Cikini
Central Jakarta
168
2015
Harris Hayam Wuruk
4-star
Upscale Class
Hayam Wuruk
Central Jakarta
238
3Q 2016
Swiss-Belhotel Kirana Avenue - Kelapa Gading
4-star
Upscale Class
Kelapa Gading
North Jakarta
300
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
Upscale Class
Ancol
North Jakarta
310
2016
Holiday Inn & Suites Simatupang
4-star
Upper Midscale Class
TB Simatupang
South Jakarta
300
2016
Horison Ultima Jakarta
4-star
N/A
Cawang
East Jakarta
182
2016
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
aloft Kebon Jeruk
4-star
Upscale Class
Kebon Jeruk
West Jakarta
140
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
257
2017
Hotel @Perintis - South Tower
4-star
N/A
Mega Kuningan
CBD
112
2018
Sheraton Jakarta Gandaria City
5-star
Upper Upscale Class
Gandaria
South Jakarta
293
4Q 2015
Alila - SCBD lot 11
5-star
Luxury Class
SCBD
CBD
250
2015
Grand Mercure Jakarta Kemayoran
5-star
Upscale Class
Kemayoran
Central Jakarta
505
2015
JW Marriott @Kemang Village
5-star
Luxury Class
Kemang
South Jakarta
275
2015
The Westin Jakarta@Cemindo Tower
5-star
Luxury Class
Cemindo Tower, Rasuna Said
CBD
250
1Q 2016
St Regis
5-star
Luxury Class
Gatot Subroto
CBD
125
2Q 2016
InterContinental Jakarta Pondok Indah Hotel & 5-star Residences
Luxury Class
Pondok Indah
South Jakarta
470
2016
JW Marriott @St Moritz
5-star
Luxury Class
Puri Indah
West Jakarta
208
2016
Ammi Jakarta
5-star
N/A
Darmawangsa
South Jakarta
180
2016
The Langham District 8@Lot 28 SCBD
5-star
Luxury Class
SCBD
CBD
500
2017
W Hotel @Ciputra World Jakarta 2
5-star
Luxury Class
Ciputra World 2, Satrio
CBD
126
2018
Four Seasons (after renovation)
5-star
Luxury Class
Rasuna Said
Regent
5-star
Luxury Class
Mangkuluhur Subroto
Rosewood Jakarta
5-star
Luxury Class
Waldorf Astoria
5-star
Luxury Class
Bellagio Hotel @Signature Tower
5-star
N/A
CBD
250
2018
Gatot CBD
365
2018
Satrio
CBD
200
2018
Thamrin
CBD
181
2018
SCBD
CBD
290
2020
Source: Colliers International Indonesia - Research and STR Global
3
Research & Forecast Report | 3Q 2015 | Hotel | Colliers International
City,
50 45 40 35
Within the next couple of years, Archipelago International will expand their business operations by developing more budget hotels under several brands including Favehotel and NEO. So far, these two hotel brands will be the biggest competitor for Tauzia Management with their existing brands like Harris, Yello and Pop!.
30 25 20 15
For the remainder of this year, should all of the underconstruction projects be completed as scheduled, there will be 591 new rooms in the budget hotel category in the Jakarta hotel market.
10 5
2019F
2018F
2017F
2016F
2015F
2015YTD
2014
2013
2010
0 2012
During 3Q 2015, there were several new budget hotels opening, including one under Archipelago International called Favehotel Zainul Arifin with a total of 84 rooms. As of this quarter, the budget hotels in the Jakarta area have 4,818 rooms, an increase of 9.6% compared to the end of 2014.
Cumulative Supply of Budget Hotels (Economy Class) in Jakarta
2011
Budget Hotel
Source: Colliers International Indonesia - Research
Budget Hotel Development in the Pipeline Name of development Whiz - Cipete
str global equivalent rate
location
N/A
Cipete
region
No. of rooms
projected completion time
South Jakarta
180
2015
180
2015
80
2015
Whiz - Hayam Wuruk
N/A
Hayam Wuruk
Central Jakarta
@HOM - Cawang
N/A
Cawang
East Jakarta
Amaris - TB Simatupang
Economy
TB Simatupang
South Jakarta
151
2015
POP! Hotel Pasar Baru
N/A
Pasar Baru
Central Jakarta
112
1Q 2016
Neo TB Simatupang
N/A
TB Siamtupang
South Jakarta
170
2017 2017
MaxOne Hayam Wuruk
N/A
Hayam Wuruk
Central Jakarta
120
POP! Hotel Wahid Hasyim
N/A
Wahid Hasyim
Central Jakarta
150
1Q 2019
POP! Hotel Gajah Mada
N/A
Gajah Mada
Central Jakarta
90
1Q 2020
Source: Colliers International Indonesia - Research and STR Global
Hotel Demand The ruling government announced a plan to reform 89 regulations, aiming to boost national economic growth. All business sectors have been in tight budget policy including the oil and mining industry, which experienced this situation long before the weakening economy took place. In general, the hotel market in Jakarta is struggling from tighter competition and the slowing demand as a result of corporation’s efficiency measures. The government spending on MICE activity, which has been the major propellant for hotel revenue, is not yet back to normal.
4
The third quarter 2015 was the period of Islamic fasting month, Ramadhan. During this month which was ahead to another big festive, Eid Mubarak are identic to the slow business. Based on data from Statistic Bureau Indonesia, the number of passengers coming to Indonesia through Soekarno-Hatta International airport by along 2015 YTD was recorded at 1,237,352 passengers, declined significantly by 5.20% compared to the same period last year.
Research & Forecast Report | 3Q 2015 | Hotel | Colliers International
Number of Passengers Through Soekarno – Hatta, Ngurah Rai and Juanda Airports 4,000,000 3,500,000
The same conditions occurred in the outside CBD area where the occupancy for upper upscale class hotels fell by 2.9%, while the upscale class hotels in this area slightly increased by less than 1% compared to 2Q 2015.
Average Occupancy Rate Jakarta
3,000,000 100%
2,500,000
90%
2,000,000
80%
1,500,000
70%
Soekarno - Hatta
Ngurah Rai
2015YTD
2014
2013
40% 2012
0 2011
50%
2010
500,000
2009
60%
2008
1,000,000
Juanda
Source: Statistics Bureau Office (BPS)
30% 20% 10% 0% 2013
Performance The mandatory use of rupiah as stipulated in the Central Bank’s regulations has affected the hotel industry in general. Some hotels operated by international hotel chains have to convert room prices into local currency. Room tariffs published on the website may be quoted in US dollars because a universal currency, i.e. the US dollar, is still needed for international guests. Most hotels have posted hotel room tariffs in rupiah for any free independent traveller who comes directly to the hotel.
2014 Jakarta
1Q 2015 CBD
2Q 2015
3Q 2015
Outside CBD
Source: STR Global
Average Occupancy Rate CBD Jakarta 100% 90% 80% 70%
Occupancy Approaching the fasting month of Ramadhan and Eid Festival, hotel occupancy during 3Q 2015 slowed. In this period, overall hotel occupancy in Jakarta area dropped slightly by 1.2% to 57.2%, while occupancy in the CBD alone slumped 2.5% to 58.6%. Hotel occupancy in the outside CBD area in the same period was stable at 56.2%. Looking at the monthly occupancy data provided by STR Global, during June - July 2015, the occupancy of all classes of hotels in Jakarta dropped by 2.5% on average. Occupancy improved in August, approximately two weeks after the Eid Fitr holiday. Looking at the occupancy performance by area, both the CBD area and outside CBD area saw a declining growth QoQ. Meanwhile, the QoQ occupancy for luxury class hotels in Jakarta plunged almost 4.0%, to 57.1% which was the biggest drop in the CBD area. The second biggest drop was at upscale class hotels by 2.5% bringing the occupancy to 62.1%. As for upper upscale class, upper midscale and midscale class hotels, the occupancy slightly declined by 1.6 and 1.7% to 62.1 and 58.4%.
5
60% 50% 40% 30% 20% 10% 0% 2013 Luxury
Upper Upscale
Source: STR Global
Research & Forecast Report | 3Q 2015 | Hotel | Colliers International
2014
1Q 2015 Upscale
2Q 2015
3Q 2015
Upper Midscale & Midscale+
Average Occupancy Rate Outside CBD Jakarta
Average Daily Rate Jakarta USD 140.00
100% 90%
USD 120.00
80% USD 100.00
70% 60%
USD 80.00
50% USD 60.00
40%
USD 40.00
30% 20%
USD 20.00
10% USD 0.00
0% 2013
2014 Upper Upscale
1Q 2015
2Q 2015
2013
3Q 2015
2014
Jakarta
Upscale
1Q 2015
CBD
Source: STR Global
Average Daily Rate
Average Daily Rate CBD Jakarta
Luxury class hotels in the CBD saw the biggest drop of 2.4% in the ADR this quarter to USD191.90. For upper midscale class and midscale class+ hotel, ADR fell by almost 2% in 3Q 2015, which put the ADR at USD66.60. The ADR for upper-class hotels was USD 76.50, down 1.4% compared to 2Q. Upper upscale class hotels in the CBD Jakarta experienced the least decline of only 0.18% that kept the ADR relatively stable at USD121.57. In the outside CBD Jakarta, the upscale class hotels experienced a moderate change of 0.69% bringing the ADR to USD58.64, lower than 2Q 2015. Meanwhile, the upper upscale class hotels in outside CBD showed a similar drop of only 0.68% in 3Q 2015 which stabilised the ADR at USD79.24.
USD 200.00
USD 160.00
USD 120.00
USD 80.00
USD 40.00
USD 0.00 2013 Luxury Source: STR Global
The continued hotel development that is taking place in Jakarta has affected the overall hotel industry, particularly the overall occupancy rate and ADR. In most cases, in anticipation of such tight competition among hotels, especially low-cost hotels and newly operating hotels, they maintain occupancy levels by giving more discounts which may affect the whole ADR performance. In particular, during the Islamic festivities when business activity softens, quite a few hotel operators provided discount packages and competitive rates. This may be a good explanation of the ADR decline in Jakarta. Aside from that, the weakening of the rupiah, has also contributed to the overall slump in the ADR.
6
3Q 2015
Outside CBD
Source: STR Global
The trend of weakening occupancy was in line with the performance of hotel revenue as reflected in the Average Daily Rate (ADR). The overall ADR of hotels in Jakarta experienced a very significant decline of 10.2% QoQ. The ADR for CBD and outside CBD hotels experienced the same downward trend with QoQ change of 7.5 and 7.1%, respectively.
2Q 2015
Research & Forecast Report | 3Q 2015 | Hotel | Colliers International
2014
Upper Upscale
1Q 2015
Upscale
2Q 2015
3Q 2015
Upper Midscale & Midscale+
Average Daily Rate Outside CBD Jakarta USD 90.00 USD 80.00 USD 70.00 USD 60.00 USD 50.00 USD 40.00 USD 30.00 USD 20.00 USD 10.00 USD 0.00 2013
2014 Upper Upscale
1Q 2015
2Q 2015
3Q 2015
Upscale
Source: STR Global
7
Research & Forecast Report | 3Q 2015 | Hotel | Colliers International
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Accelerating success.
