Research & Forecast Report Jakarta | Hotel Q1 2016
Hotel Sector “A One Hotel (a 3–star developed by the Cemara Hotel Group) which added 150 rooms to the market was the only hotel completed during the quarter. As of Q1 2016 the total hotel room supply for star rated and budget hotels was 42,014 rooms. The YoY overall occupancy in Jakarta area dropped quite significantly by 14.6%, putting the AOR at 49.5% - the lowest since 2013. In contrast with the AOR figure, hotels in Jakarta overall experienced a slight increase in ADR by 2.0% YoY by the end of Q1 2016 from USD80.59 to USD82.18. In the CBD, the ADR dropped slightly by 2.3% to USD120.28 and the ADR for hotels outside the CBD increased quite significantly by 5.9% to USD57.97.”
Tourism Highlights For the last years, the Indonesian government has put great effort into accelerating the growth of the tourism industry. The Ministry of Tourism has secured the highest budget for this sector in 2016, particularly through the tagline “Wonderful Indonesia” that has gained world recognition by winning three out of six categories from the United Nations World Tourism Organization (UNWTO). Thus far, the government has been on the right track by also achieving the World Halal Tourism Award, i.e. the award for the Best Halal Tourist Destination and the Best Halal Honeymoon Destination for Lombok, West Nusa Tenggara Province. At the hoteliers’ level, Best Family-Friendly Hotel went to Sofyan Hotel. We also noted that Indonesia is one of the chosen destinations for Middle East tourists and is expecting 12 million visits.
Accelerating success.
Although hotel performance slightly improved during the last quarter of 2015, the overall performance was still below that in 2014. During Q1 2016, there was only one new 3-star hotel in Jakarta, i.e. A One Hotel which is part of Cemara Hotel Group which added 150 rooms to the market. In Q1 2016, all 87 of the 3-star hotels had a total of 10,363 rooms.In the 4-star hotel category, Swiss-Belhotel Group expanded and opened one hotel in the Pondok Indah area. Swiss-Belhotel Pondok Indah provides 159 rooms. This hotel became the third in the Pondok Indah area after Hotel Kristal and Best Western The Bellevue Hotel. This brings the total of rooms at 4-star hotels in Jakarta to 15,355 rooms at 68 hotels. During the Q1 2016, there were no new 5-star hotels in Jakarta, but the supply of new 5-star hotels may increase in mid-year 2016. Among the big hotel chain operators in Indonesia, Accor is dominating the market in Indonesia followed by Santika Hotel & Resorts and Archipelago International, as depicted in the graph below.
Most Active Hotel Chain Operators in Jakarta (including Budget Hotel) - Based on Number of Project Swiss-Belhotel International 9%
InterContinental Hotel Group 8%
Santika Hotel & Resorts 24%
Supply At the end of 2014, the owner of the Four Seasons hotel announced its closure due to demolition of the hotel. The owner will rebuild new hotel which will be in operation in 2019. The new project is now under construction and when it is completed, St. Regis will manage the hotel. St. Regis was supposed to manage the new hotel in Jalan Jenderal Gatot Subroto but it has now been confirmed that it will be managed by Four Seasons. The year 2015 marked a downturn in the hotel sector. Since Q1 2015, the hotel sector has faced unfavourable conditions.
Tauzia Management 7%
Archipelago International 24%
Accor 28% Source: Colliers International Indonesia - Research
Cumulative Supply of Star-Rated Hotel Projects in Jakarta
Cumulative Supply of Star-Rated Hotel Rooms in Jakarta
100
21,000
90
18,000
80 15,000
70 60
12,000
50
9,000
40 30
6,000
20
3,000
10
4-star
3-star
5-star
Source: Colliers International Indonesia - Research
4-star
2019F
2018F
2017F
2016F
2016YTD
2015
2014
2013
2012
2010
2019F
2018F
2017F
2016F
2016YTD
2015
2014
2013
2012
2011
2010
3-star
2011
0
0
5-star
Source: Colliers International Indonesia - Research
Hotel Developments in Pipeline hotel
star rating
str global equivalent rate
location
region
rooms
projected completion time
Harper Cawang Hotel & Conference Center
3-star
N/A
Cawang
East Jakarta
108
Q2 2016
Yello Hotel Hayam Wuruk
3-star
N/A
Hayam Wuruk
Central Jakarta
372
Q3 2016
Harper TB Simatupang
3-star
N/A
TB Simatupang
South Jakarta
180
Q3 2016
Holiday Inn Express Cikini
3-star
Upper Midscale Class
Cikini
Central Jakarta
212
2016
Whiz Prime Hayam Wuruk
3-star
N/A
Hayam Wuruk
Central Jakarta
100
2016
Big Hotel (Extention)
3-star
N/A
Sawah Besar
North Jakarta
75
2016
Holiday Inn Express Simatupang
3-star
Upper Midscale Class
TB Simatupang
South Jakarta
200
2016
Ibis Styles Jakarta PIK
3-star
Midscale Class
Pantai Indah Kapuk
North Jakarta
200
2016
Ibis Styles Tanah Abang
3-star
Midscale Class
Tanah Abang
Central Jakarta
225
2017
Grand Zuri Mangga Dua
3-star
N/A
Mangga Dua
Central Jakarta
130
2017
Hotel Pasar Senen
3-star
N/A
Senen
Central Jakarta
200
2017
Santika TB Simatupang
3-star
Upper Upscale Class
TB Simatupang
South Jakarta
160
Q1 2018
Total 3-star hotel rooms
2,162
Swiss-Belhotel - Kelapa Gading
4-star
Upper Midscale Class
Kelapa Gading
North Jakarta
316
Q2 2016
Mercure Cikini
4-star
Upper Midscale Class
Cikini
Central Jakarta
207
Q2 2016
Swiss-Belhotel Rasuna Epicentrum
4-star
Upper Midscale Class
Rasuna Epicentrum
South Jakarta
323
Q3 2016
Harris Hayam Wuruk
4-star
Upscale Class
Hayam Wuruk
Central Jakarta
238
Q3 2016
Holiday Inn Hotel & Resorts Jakarta Gajah Mada
4-star
Upper Midscale Class
Gajah Mada
Central Jakarta
420
Q4 2016
Prima Hotel
4-star
N/A
KH Wahid Hasyim
Central Jakarta
150
2016
Aston Titanium Cijantung
4-star
Upscale Class
Cijantung
East Jakarta
225
2016 Continued
2
Research & Forecast Report | Q1 2016 | Hotel | Colliers International
Name of development
star rated
str global equivalent rate
location
region
No. of rooms
projected completion time continuation
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
Grand Whiz Poin Square
4-star
N/A
Lebak Bulus
South Jakarta
132
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
Upper Upscale Class
Ancol
North Jakarta
310
2016
Holiday Inn & Suites Simatupang
4-star
Upper Midscale Class
TB Simatupang
South Jakarta
300
2016
aloft Kebon Jeruk
4-star
Upscale Class
Kebon Jeruk
West Jakarta
140
Q1 2017
Batiqa Cassablanca
4-star
N/A
Kasablanka
South Jakarta
156
Q1 2017
Novotel Cikini
4-star
Upscale Class
Cikini
Central Jakarta
286
Q2 2017
Oyama Centre
4-star
N/A
Yos Sudarso
North Jakarta
160
Q3 2017
Mercure Matraman
4-star
Upper Midscale Class
Matraman
South Jakarta
150
Q3 2017
Horison Ultima Jakarta
4-star
N/A
Cawang
East Jakarta
156
2017
Grand Whiz Hotel Sunter
4-star
N/A
Sunter
North Jakarta
160
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
150
2017
Morrissey Hotel
4-star
N/A
Wahid Hasyim
Central Jakarta
343
2017
Mercure Kemang
4-star
Upper Midscale Class
Kemang
South Jakarta
80
Hotel @Perintis - South Tower
4-star
N/A
Mega Kuningan
CBD Total 4-star hotel rooms
The Westin Jakarta@Gama Tower
5-star
112
Q1 2018 2018
5,426
Upper Upscale Class
Rasuna Said
CBD
283
Q2 2016
InterContinental Jakarta Pondok Indah Hotel & 5-star Residences
Luxury Class
Pondok Indah
South Jakarta
470
Q2 2016
Four Seasons
5-star
Luxury Class
Rasuna Said
CBD
365
Q3 2016
Alila - SCBD lot 11
5-star
Upper Upscale Class
SCBD
CBD
250
2016
JW Marriott @St Moritz
5-star
Luxury Class
Puri Indah
West Jakarta
208
2016
Aryaduta - Holland Village
5-star
Upscale Class
Cempaka Putih
Central Jakarta
180
Q4 2017
The Langham District 8@Lot 28 SCBD
5-star
Luxury Class
SCBD
CBD
200
2017
W Hotel @Ciputra World Jakarta 2
5-star
Luxury Class
Satrio
CBD
126
Q4 2018
Sofitel
5-star
Luxury Class
Mega Kuningan
CBD
212
2018
Regent
5-star
Luxury Class
Gatot Subroto
CBD
127
2018
Rosewood Jakarta
5-star
Luxury Class
Satrio
CBD
200
2018
St Regis
5-star
Luxury Class
Gatot Subroto
CBD
125
Q1 2019
Waldorf Astoria
5-star
Luxury Class
Thamrin
CBD
181
2019
Source: Colliers International Indonesia - Research and STR Global
3
Research & Forecast Report | Q1 2016 | Hotel | Colliers International
Total 5-star hotel rooms
2,927
Total star hotel rooms
10,515
Budget Hotel Recent times have been slow for budget hotels with only one new hotel opening during Q1 2016. Amaris Hotels, a member of Santika Hotel & Resorts has just opened the Amaris Satrio in the CBD area. The hotel provides 54 rooms bringing the total of rooms at budget hotels in Jakarta to 4,967.
Cumulative Supply of Budget Hotel (Economy Class) in Jakarta 60
50
40
30
20
2019F
2018F
2017F
2016F
2015
2014
2013
2012
2011
2010
0
2016…
10
Source: Colliers International Indonesia - Research
Budget Hotel (Economy Class) Developments in the Pipeline hotel
str global equivalent rate
location
region
rooms
projected completion time
Amaris Pluit
Economy Class
Pluit Raya
North Jakarta
112
Q2 2016
Oak Tree
N/A
Wahid Hasyim
Central Jakarta
120
Q2 2016
Fame Hotel
N/A
Grand Cakung Mall
East Jakarta
97
Q3 2016
Cordela Hotel
N/A
Kramat Raya
Central Jakarta
70
Q3 2016
Amaris Tanah Abang
Economy Class
Tanah Abang
Central Jakarta
79
Q3 2016
Whiz - Cipete
N/A
Cipete
South Jakarta
180
2016
NEO Kebayoran
Midscale Class
Kebayoran Lama
South Jakarta
102
2016
POP! Hotel Pasar Baru
Economy Class
Pasar Baru
Central Jakarta
112
2016
Luminor
N/A
Pecenongan
Central Jakarta
199
2016
Amaris Slipi
Economy Class
Letjen S Parman
West Jakarta
146
Q2 2017
Ibis Budget Jaksa
Economy Class
Jaksa
Central Jakarta
99
2017
MaxOne Hayam Wuruk
N/A
Hayam Wuruk
Central Jakarta
120
2017
Whiz Hayam Wuruk
N/A
Hayam Wuruk
Central Jakarta
200
Q1 2018
POP! Hotel Wahid Hasyim
Economy Class
Wahid Hasyim
150
Q1 2019
Central Jakarta Total budget hotel rooms
Source: Colliers International Indonesia - Research and STR Global
Performance In early 2016, Jakarta was struck by bomb and gun attacks but the situation was immediately under control. It had a short time effect on the business climate in Jakarta with an insignificant number of tourists cancelling or postponing their hotel bookings. Although the tourism industry was in a relatively stable condition, the government continued to try to convince the public that Indonesia is safe. After the bombing attack, some countries issued travel warning to their citizens about visiting Indonesia.
4
Research & Forecast Report | Q1 2016 | Hotel | Colliers International
1,786
Average Occupancy Rate in CBD
Occupancy The first quarter of each year has always been a challenging period for the hotel industry, particularly when the outlook is not that great. The Year-to-Date (YTD) overall occupancy in the Jakarta area dropped quite significantly by 14.6%, putting the AOR at 49.5% the lowest since 2013. The biggest drop of 16.4% occurred in the CBD, bringing the AOR to 49.9%. Similarly, albeit with a lower decline of 13.4%, the AOR for hotels in outside the CBD was recorded at 51.0% in 1Q 2016.
100%
The AOR of luxury class hotels, which are mainly found in the CBD area, underperformed by 18.2% as of Q1 2016, dropping to 47.0%.
40%
Similarly, a declining trend in the occupancy rate also took place in outside the CBD area for all classes of hotels. In the upper upscale class, the AOR was down significantly by 24.5% from 62.9% to 47.5%. In the upscale class, the AOR dropped by 11.5% to 55.6%.
90% 80% 70% 60% 50%
30% 20% 10% 0% 2013 Luxury Class
Upper Upscale Class
2015
2016YTD
Upper Midscale & Midscale Classes+
Source: STR Global
Average Occupancy Rate Jakarta 100%
Average Occupancy Rate in Outside the CBD
90%
100%
80%
90%
70%
80%
60%
70%
50%
60%
40%
50%
30%
40%
20%
30%
10%
20%
0% 2013
2014 Jakarta
CBD
2015 Outside CBD
2016YTD
10% 0% 2013
Source: STR Global
2014
Upper Upscale Class Source: STR Global
5
2014
Research & Forecast Report | Q1 2016 | Hotel | Colliers International
2015
2016YTD
Upscale Class
Average Daily Rate CBD Jakarta
Average Daily Rate In contrast with the AOR figure, overall, hotels in Jakarta experienced a slight increase in ADR by 2.0% YoY during Q1 2016 from USD80.59 to 82.18. In the CBD area, the ADR dropped slightly by 2.3% to USD120.28 and the ADR for hotels outside the CBD increased quite significantly by 5.9% to USD57.97. The ADR for luxury class hotels in the CBD area decreased by 7.7% YoY, dropping it to USD175.74. Despite being lower YoY, the ADR for upper upscale class was better, down 1.4%, bringing the figure for this quarter to USD119.17. The upscale class hotels maintained the ADR level at USD75.61. The upper midscale and midscale classes+ experienced a 7.7% decrease, which pushed the ADR to USD59.92. While the ADR of most hotels in the CBD decreased, the ADR in outside the CBD increased quite a bit. The upper upscale class hotels posted an 11.2% increase and lifted the ADR this quarter to USD86.38. The ADR for upscale class hotels eased 10.8% to USD63.32. For most hoteliers, the beginning of the year might be described as a warm-up period. Particularly at the start of this year, the hotel business was looking for momentum to perform better than last year.
USD200.00
USD160.00
USD120.00
USD80.00
USD40.00
USD0.00 2013
2014
2015
2016YTD
Luxury Class
Upper Upscale Class
Upscale Class
Upper Midscale & Midscale Classes+
Source: STR Global
Average Daily Rate Outside the CBD Jakarta USD90.00
Average Daily Rate Jakarta
USD75.00
USD150.00 USD60.00 USD120.00 USD45.00 USD90.00
USD30.00
USD60.00
USD15.00
USD0.00
USD30.00
2013
Upper Upscale Class
USD0.00 2013 Jakarta
2014 CBD
2015
2016YTD
Source: STR Global
Outside CBD
Source: STR Global
6
2014
Research & Forecast Report | Q1 2016 | Hotel | Colliers International
2015 Upscale Class
2016YTD
554 offices in 66 countries on 6 continents
Primary Authors: Ferry Salanto Associate Director | Jakarta 62 21 3043 6730
[email protected]
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Colliers International Indonesia World Trade Centre 10th & 14th Floors Jalan Jenderal Sudirman Kav. 29 - 31 Jakarta 12920 Indonesia TEL 62 21 3043 6888
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Accelerating success.
