Research & Forecast Report Jakarta | Hotel Q4 2015
Accelerating success.
“By the end of 2015, the total room supply of star-rated hotels in DKI Jakarta was 37,648 rooms in 179 hotels. Jakarta is anticipating a substantial amount of new hotel rooms during 2016 – 2018 with additional 10,509 rooms in 51 new hotels. The overall Average Occupancy Rate in DKI Jakarta was recorded at 59.1% which was lower than the 2014 figure of 64.8%. This was the result of the reduced number of corporate guests from the Indonesian government after the regulation that officially banned civil servants from having meeting in hotels. Likewise the Average Daily Rate also dropped YoY from USD95.04 in 2014 to USD82.02 in 2015.”
Hotel Sector Supply Jakarta, as the capital city of Indonesia, is a magnet for the hotel business. In 2015, several new hotels opened in Jakarta.
Ferry Salanto | Associate Director - Research Newly Operating Hotels in Jakarta During 2015 hotel
star rating
str global equivalent rate
location
region
rooms
opening time
Swiss-Belinn Springhill Kemayoran
3-star
Upscale
Kemayoran
Central Jakarta
156
1Q
Ibis Harmoni
3-star
Midscale
Harmoni
Central Jakarta
212
1Q
Swiss-Belinn Simatupang
3-star
Upscale
TB Simatupang
South Jakarta
159
3Q 3Q
Ibis Styles
3-star
Midscale
Sunter
North Jakarta
145
Holiday Inn Express
3-star
Upper Midscale
JIExpo
Central Jakarta
243
4Q
Holiday Inn Express Wahid Hasyim
3-star
Upper Midscale
Wahid Hasyim
Central Jakarta
160
4Q
Dafam Teraskita
3-star
N/A
Cawang
152
4Q
East Jakarta Total 3-star hotel rooms
1,227
Best Western Bellevue
4-star
Midscale
Pondok Indah
South Jakarta
156
The101 Dharmawangsa
4-star
N/A
Dharmawangsa
South Jakarta
138
1Q
Veranda @Pakubuwono
4-star
N/A
Pakubuwono
South Jakarta
184
2Q
Midscale
TB Simatupang
South Jakarta
296
3Q 3Q
Aston Priority Simatupang Hotel & Conference 4-star Centre
1Q
Swiss-Belresidence Kalibata
4-star
Upscale
Kalibata
South Jakarta
212
Santika Premier Hayam Wuruk
4-star
Upper Upscale
Hayam Wuruk
Central Jakarta
271
4Q
Grandhika
4-star
N/A
Blok M
South Jakarta
239
4Q
Raffles Hotel Jakarta
5-star
Luxury
Mega Kuningan
CBD
171
1Q
Fairmont Hotel
5-star
Luxury
Senayan
South Jakarta
380
1Q
Total 4-star hotel rooms
1,496
Grand Mercure Kemayoran
5-star
Upscale
Kemayoran
Central Jakarta
505
4Q
Sheraton Gandaria City
5-star
Upper Upscale
Gandaria City
South Jakarta
293
4Q
Source: Colliers International Indonesia - Research
Total 5-star hotel rooms
1,349
Total hotel rooms
4,072
Looking at the development above, South Jakarta area was still the most favourable place for hotel development, especially for 5and 4-star hotels. Based on star ratings, 4-star hotels dominated the development with 1,496 rooms (seven hotel projects), followed by 5-star hotels with 1,349 rooms (four hotel projects) and 3-star hotels with 1,227 rooms (seven hotel projects).
By the end of 2015, the total room supply in Jakarta was dominated by 4-star hotels with 15,046 rooms (11.04% YoY growth), followed by 5-star hotels with 12,191 rooms (8.78% YoY growth) and 3-star hotels with 10,411 rooms (13.36% YoY growth).
Cumulative Supply of Star-rated Hotel Projects in Cumulative Supply of Star-Rated Hotel Rooms in Jakarta 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 0
3-star
4-star
5-star
3-star
Source: Colliers International Indonesia - Research
4-star
2019F
2018F
2017F
2016F
2015
2014
2013
2012
2011
2010
2019F
2018F
2017F
2016F
2015
2014
2013
2012
2011
2010
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
1Q 2016
Yello Hotel Hayam Wuruk
3-star
N/A
Hayam Wuruk
Central Jakarta
372
3Q 2016
Holiday Inn Express Cikini
3-star
Upper Midscale Class
Cikini
Central Jakarta
212
2016
Prima Hotel
3-star
N/A
Wahid Hasyim
Central Jakarta
150
2016
Whiz Prime Hayam Wuruk
3-star
N/A
Hayam Wuruk
Central Jakarta
100
2016
A One Hotel Jakarta
3-star
N/A
Wahid Hasyim
Central Jakarta
200
2016
Citylight - 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
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
Hotel @ Tanah Abang
3-star
N/A
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
Pasar Senen
Central Jakarta
200
2017
Santika TB Simatupang
3-star
Upper Upscale Class
TB Simatupang
South Jakarta
160
1Q 2018
Total 3-star hotel rooms
2,432 Continued
2
Research & Forecast Report | Q4 2015 | Hotel | Colliers International
Name of development
star rated
str global equivalent rate
location
region
No. of rooms
projected completion time continuation
Aston Gajah Mada Hotel & Convention Center
4-star
Upscale Class
Gajah Mada
Central Jakarta
192
1Q 2016
Prima Hotel
4-star
N/A
KH Wahid Hasyim
Central Jakarta
150
1Q 2016
Holiday Inn Hotel & Resorts Jakarta Gajah Mada
4-star
Upper Midscale Class
Gajah Mada
Central Jakarta
447
1Q 2016
Swiss-Belhotel Rasuna Epicentrum
4-star
Upscale Class
Rasuna Epicentrum
South Jakarta
323
2Q 2016
Harris Hayam Wuruk
4-star
Upscale Class
Hayam Wuruk
Central Jakarta
238
3Q 2016
Aston Titanium Cijantung
4-star
Upscale Class
Cijantung
East Jakarta
225
2016
Aston Kemayoran 88
4-star
Upscale Class
Kemayoran
Central Jakarta
200
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
Grand Whiz Poin Square
4-star
N/A
Lebak Bulus
South Jakarta
132
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
aloft Kebon Jeruk
4-star
Upscale Class
Kebon Jeruk
West Jakarta
140
1Q 2017
Batiqa Cassablanca
4-star
N/A
Kasablanka
South Jakarta
156
1Q 2017
Novotel Cikini
4-star
Upscale Class
Cikini
Central Jakarta
286
2Q 2017
Oyama Centre
4-star
N/A
Yos Sudarso
North Jakarta
160
3Q 2017
Mercure Matraman
4-star
Upscale Class
Matraman
South Jakarta
150
3Q 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
Mercure Kemang
4-star
Upscale Class
Kemang
South Jakarta
80
Hotel @Perintis - South Tower
4-star
N/A
Mega Kuningan
CBD Total 4-star hotel rooms
112
1Q 2018 2018
5,279
The Westin Jakarta@Gama Tower
5-star
Luxury Class
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
2Q 2016
Alila - SCBD lot 11
5-star
Luxury 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
4Q 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
2018
Sofitel
5-star
Luxury Class
Mega Kuningan
CBD
212
2018
Four Seasons (after renovation)
5-star
Luxury Class
Rasuna Said
CBD
365
2018
Regent
5-star
Luxury Class
Gatot Subroto
CBD
365
2018
Rosewood Jakarta
5-star
Luxury Class
Satrio
CBD
200
2018
Waldorf Astoria
5-star
Luxury Class
Thamrin
CBD
181
2018
Source: Colliers International Indonesia - Research and STR Global
3
Research & Forecast Report | Q4 2015 | Hotel | Colliers International
Total 5-star hotel rooms
3,132
Total star hotel rooms
10,843
Budget Hotel Budget hotel development in Jakarta was slow. Based on our data, there were only four new budget hotels entering the Jakarta market in 2015. The Cabin Hotel in North Jakarta area added 132 rooms to the supply and MaxOne Hotels added two properties in Jakarta. MaxOne Pemuda, in the East Jakarta area added 105 rooms to the supply, while MaxOne Glodok, in the North Jakarta area added 100 rooms. Favehotel, a member of the Archipelago family entered the market, adding 84 rooms to the supply. In total, there were 421 rooms added during 2015. By the end of 2015, there were 4,818 rooms in the Jakarta budget hotel market, an increase of only 6.52% YoY.
Cumulative Supply of Budget Hotel (Economy Class) in Jakarta 60
50
40
30
20
10
2019F
2018F
2017F
2016F
2015
2014
2013
2012
2011
2010
0
Source: Colliers International Indonesia - Research
Budget Hotel (Economy Class) Developments in the Pipeline hotel
str global equivalent rate
location
region
POP! Hotel Pasar Baru
N/A
Pasar Baru
Central Jakarta
Amaris - Satrio
N/A
Satrio
CBD
rooms
projected completion time
112
1Q 2016
54
1Q 2016
Luminor
N/A
Pecenongan
Central Jakarta
199
1Q 2016
Amaris Pluit
N/A
Pluit Raya
North Jakarta
112
2Q 2016
Oak Tree
N/A
Wahid Hasyim
Central Jakarta
120
2Q 2016
Fame Hotel
N/A
Grand Cakung Mall
East Jakarta
97
3Q 2016
Cordela Hotel
N/A
Kramat Raya
Central Jakarta
70
3Q 2016
Whiz - Cipete
N/A
Cipete
South Jakarta
180
2016
NEO Kebayoran
N/A
Kebayoran Lama
South Jakarta
102
2016
146
Amaris Slipi
N/A
Letjen S Parman
West Jakarta
Ibis Budget Jaksa
N/A
Jaksa
Central Jakarta
99
2017
2Q 2017
MaxOne Hayam Wuruk
N/A
Hayam Wuruk
Central Jakarta
120
2017
Whiz Hayam Wuruk
N/A
Hayam Wuruk
Central Jakarta
200
1Q 2018
POP! Hotel Wahid Hasyim
N/A
Wahid Hasyim
Central Jakarta
150
1Q 2019
POP! Hotel Gadjah Mada
N/A
Gajah Mada
90
1Q 2020
Central Jakarta Total budget hotel rooms
1,761
Source: Colliers International Indonesia - Research and STR Global
Demand The Indonesian government, through the Ministry of Tourism, set a target of about 10,000,000 international visitors by the end of 2015. Data from the Statistics Bureau shows that 1,900,459 visitors landed at Soekarno – Hatta International Airport up to October 2015, a 1.3% increase YoY. Based on overall foreign visitors coming to Indonesia, 3.36% of them landed in Jakarta.
4
From January to October 2015, 8,016,589 tourists landed in Indonesia. With the positive growth, there is the possibility that the number targeted by the government will be achieved. Demand for hotel accommodation in the Jakarta area is mainly for business purposes. However, any MICE activity, like annual concerts and sporting events are two examples of the potential market for the hotel industry in Jakarta.
Research & Forecast Report | Q4 2015 | Hotel | Colliers International
Besides the city centre, the airport and surrounding area has the greatest potential for hotel development. There is quite rapid hotel development, especially in the area surrounding Soekarno – Hatta International Airport. Various star-rated hotels have built in that area and are attracting transit passengers who have to catch early morning flights. The facilities offered by airport hotels are the same as at other hotels. Some of them offer meeting rooms and swimming pools, and most of them provide an airport shuttle, which is the added value of hotels located in the area surrounding the airport.
Number of Passengers through Soekarno – Hatta Airport, Ngurah Rai and Juanda Airports 4,000,000 3,500,000 3,000,000
Occupancy Hotel performance moved up modestly at the end of 2015. By 4Q 2015, the occupancy of the Jakarta hotel market in general had increased by 2.7% to 59.1%. The positive growth occurred both in the CBD and outside the CBD. The highest growth was in outside the CBD area with 3.5%, while the CBD occupancy rate increased by only 1.6%. Looking at the CBD hotel market, upper midscale and midscale class + hotel performance experienced the highest growth with a 3.4% increase. The lowest growth in the CBD hotel market was in the luxury class hotel market at 0.7%. The small growth in the luxury hotel market was possibly a result of recent economic conditions. The global economic crisis drove many industries to their worst performance all year. As a result, most of them are downsizing their companies, as well as cutting travel expenses and reducing the number of their expatriate staff.
Average Occupancy Rate Jakarta
2,500,000 2,000,000
100%
1,500,000
90%
1,000,000
80% 70%
500,000
60%
Soekarno - Hatta
Ngurah Rai
2015YTD
2014
2013
2012
2011
2010
2009
2008
0
Juanda
Source: Statistics Bureau Office (BPS)
50% 40% 30% 20% 10%
Performance There were several events that had quite a significant effect on the hotel industry in 2015. At the end of 2014, a government policy banned government institutions from holding meetings and conferences in hotels and convention centres. As a result, the hotel industry was struggling, particularly in 1Q 2015.
0% 2013
Jakarta Source: STR Global
The growth of hotel development in Jakarta was quite rapid in the last few years, nevertheless, the growth of development did not follow the demand growth as reflected in the weakening occupancy level. The last event that had an effect on the hotel industry in general was the mandatory use of rupiah as stipulated by the Central Bank regulations. Some hotels operated by international hotel chain operators had to adjust room rates into local currency. Room rates published on their websites may be quoted in US dollars because it is the universal currency understood by international guests. Most hotels use room rates in rupiah with any independent traveller who comes directly to the hotel.
5
2014
Research & Forecast Report | Q4 2015 | Hotel | Colliers International
1Q 2015 CBD
2Q 2015
3Q 2015
Outside CBD
2015YTD
Average Occupancy Rate in CBD
Average Daily Rate
100%
The Average Daily Rate (ADR) of Jakarta hotels was decreasing at the end of 2015. The 4Q 2015 ADR was USD82.02, a 0.15% decrease QoQ. The ADR for hotels in the CBD increased moderately by 1.24% QoQ from USD123.01 to 124.54 and the ADR for hotels outside the CBD increased by 0.98% QoQ from USD54.60 to 55.14.
90% 80% 70% 60%
The ADR of luxury class hotels in the CBD in 4Q 2015 was USD190.88, a 0.33% decrease compared to last quarter. The upper upscale class hotels slightly decreased from USD121.41 to 121.00. The ADR for the upscale class showed a 0.7% decrease from USD76.31 to 75.72. The highest drop was at upper midscale class and midscale class+ hotels at 1.8% from USD66.26 to 65.04.
50% 40% 30% 20% 10% 0% 2013 Luxury Class
2014
1Q 2015
Upper Upscale Class
2Q 2015
3Q 2015
2015YTD
Upper Midscale & Midscale Classes+
In outside the CBD, the upscale class hotels experienced a 1.9% decrease bringing the ADR to USD57.20. The upper upscale class in outside the CBD Jakarta also dropped 1.8%, bringing the ADR to USD77.31. On average, the ADR for Jakarta hotels showed an increase. There were many things in 2015 that affected the hotel industry.
Source: STR Global
Average Occupancy Rate in Outside the CBD 100% 90% 80% 70% 60% 50% 40% 30%
The continued hotel development 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 try to maintain occupancy levels by giving more discounts, which may affect the overall ADR. In particular, during the Islamic festivities when business activity softens, quite a few hotel operators provide discount packages and competitive rates. This may be a good explanation for the ADR decline in Jakarta. Aside from that, the weakening of the rupiah has also contributed to the overall slump and the downturn in ADR.
Average Daily Rate Jakarta
20%
USD150.00
10% 0% 2013
2014
1Q 2015
Upper Upscale Class
2Q 2015
3Q 2015
2015YTD
USD120.00
Upscale Class USD90.00
Source: STR Global
USD60.00
USD30.00
USD0.00 2013
2014 Jakarta
Source: STR Global
6
Research & Forecast Report | Q4 2015 | Hotel | Colliers International
1Q 2015 2Q 2015 3Q 2015 2015YTD CBD
Outside CBD
Average Daily Rate CBD Jakarta USD200.00
USD160.00
USD120.00
USD80.00
USD40.00
USD0.00 2013
2014
1Q 2015 2Q 2015 3Q 2015 2015YTD
Luxury Class
Upper Upscale Class
Upscale Class
Upper Midscale & Midscale Classes+
Source: STR Global
Average Daily Rate Outside the CBD Jakarta USD90.00
USD75.00
USD60.00
USD45.00
USD30.00
USD15.00
USD0.00 2013
2014
1Q 2015 2Q 2015 3Q 2015 2015YTD
Upper Upscale Class
Upscale Class
Source: STR Global
7
Research & Forecast Report | Q4 2015 | Hotel | Colliers International
502 offices in 67 countries on 6 continents
Primary Authors: Ferry Salanto Associate Director | Jakarta 62 21 3043 6730
[email protected]
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billion in annual revenue
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About Colliers International Group Inc. Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years, more than any other real estate services firm. colliers.com/indonesia
Copyright © 2013 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
Accelerating success.
