4Q 2010

REAL ESTATE mARkET REpoRT

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Jakarta Hotel
sUPPlY
During 2010 four new hotels began operating in Jakarta: one 3-star hotel, two 4-star hotels and one 5-star hotel. kawanua Aerotel, a 3-star hotel, has 79 rooms and is developed by the provincial government of North Sulawesi and managed by Aerowisata. of this hotels 11 floors, 10 are operated as hotel and one as their Jakarta representative office. meanwhile, the 5-star merlynn park hotel in kH Hasyim Ashari is also operated under Sunlake Hotel Group. The merlynn park hotel, of 26 floors, comprises 301 rooms and a ballroom. Another hotel, the 4-star Harris hotel in kelapa Gading, which is under Tauzia Hotel management, operates with 226 rooms. In the last quarter of 2010, Best Westerns mangga Dua was launched. This is the first Best Western hotel chain in Jakarta, operating the first 118 of their total plan of 168 rooms. In summary, during 2010 the four new hotels provided a total of 724 rooms. By contrast, the hotel market also saw the closing down of one 3-star hotel, the Cikini Sofyan (111 rooms), which had been operated for about 27 years. This hotel was owned by pT Sofyan Hotels Tbk. and sold to pT Cempaka Wenang Jaya for Rp44.47 billion. pT Cempaka Wenang Jaya is a developer for Villa Del Sol and Villa Bumi Ciherang, both located in Cipanas, West Java. This developer is also developing the mutiara kemang Townhouse and the mutiara Brawijaya Residence in Jakarta. All in all, with the influx of four hotels, minus the Cikini Sofyan Hotel, the total of hotel rooms in Jakarta is 23,638, from a total of 98 hotels. Based on the classification, the room percentage of both 4- and 5-star hotels is 39%, of which 4-star hotels have 9,154 rooms in 35 hotels,

annUal sUPPlY of 3-, 4- and 5-star hotels in jakarta bY nUmber of rooms

12,000 9,000 6,000 3,000 0 2008 3-star 2009 2010 2011p 5-star 2012p 40 30 20 10 0 2008 2009 3 star 2010 4 star 2011p 5 star 2012p

bY nUmber of hotels

4-star

Colliers International Indonesia - Research

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JAKARTA | 4Q 2010 | THE KNOWLEDGE | HOTEL SECTOR

In the short term, the remaining 50 rooms from Best Western mangga Dua will be launched in 2011. Further, in the same year, Jakarta will receive another 370 hotel rooms from the operation of the pullman Hotel in the Central park commercial compound. over the next three years, it is projected that hotel room supply will grow by 6.3% annually, with 5-star hotels as the biggest contributor, with 2,407 rooms. over the same period, Jakarta should see an additional 804 rooms from 3-star hotels and 1,575 rooms from 4-star hotels. It is interesting to note that several future hotel developments will be built on mixed-use commercial compounds like pullman in Central park, Aryaduta Regency in kemang Village, Aryaduta Hotel & Convention in St moritz, hotels at Gandaria City and a hotel in kota kasablanka.
new hotel develoPments based on location
West Jakarta 11.11% Central Jakarta 22.22%

list of Potential hotel develoPment in 2010 - 2012

name of hotel Year of oPeration location

3-star All Seasons 4-star Best Western mangga Dua Aston menteng Hotel @ Emporium pluit 5-star pullman The Aryaduta Regency Raffles St Regis Hotel & Residence Hotel @ Gandaria City 2011 2012 2012 2012 2012 S. parman kemang Satrio Gatot Subroto Gandaria
Colliers International Indonesia - Research

2012 2011 2012 2012

kH Zainul Arifin mangga Dua menteng pluit

North Jakarta 22.22%

Local guests continued to support the hotel business in Jakarta, dominating the guest profile throughout 2010. Foreign guests in 3-star hotels represented only 11%, while in 4-star hotels 27% of hotel guests were foreigners. Five-star hotels had a higher complement of foreign guests, at 46%. However, this number is lower than in 2009, when foreign guests dominated the 5-star guest profile, at 57%.

Looking at the length of stay (LoS), foreign guests stayed longer than local guests. Foreign guests stayed longer in 3-star hotels than in 5-star hotels, while local guests stayed longer in 5-star hotels than in 3-star hotels, especially during school holidays (June-August period). Foreign guests stayed longer in the later months of the year.

South Jakarta 44.44%

Colliers International Indonesia - Research

length of staY (los) comParison between foreign and local gUests

Year 3-star foreign gUests 4-star 5-star 3-star local gUests 4-star 5-star

demand
The number of foreign visitors coming to Jakarta in January November 2010 through Soekarno Hatta airport was recorded at 1,684,394, representing 26.5% of all foreign visitors throughout Indonesia. The government has targeted an increase of 10% in 2011 to the number of foreign tourists to Indonesia, from 7 to 7.7 million in 2011. This target is expected to contribute US$8.3 billion to the country (assuming that each tourist will spend around US$1,100. mICE (meeting, incentive, conference and event) will contribute most in the tourism business.

2009 2010

3.51 3.14

3.08 3.24

2.47 2.30

1.86 1.71

2.41 2.26

2.40 2.04
Jakarta Statistics

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JAKARTA | 4Q 2010 | THE KNOWLEDGE | HOTEL SECTOR

Performance average occUPancY rate (aor)

In general, the occupancy rate for starred hotels in Jakarta experienced a decline during 3Q2010, mainly due to the muslim festive holiday, but bounced back in 4Q2010 with an upward trend of between 4% and 9%. During the quarter, 4-star hotels still recorded the highest occupancy, with an average of 74%, followed by 3-star hotels at 65% and 5-star hotels at 59%. In the 3-star category, three hotels achieved high occupancy, of above 80%: Ibis mangga Dua, Harris Hotel and Bumi karsa. meanwhile, quite a few 4-star hotels reached occupancy levels above 80%; among the highest were menara peninsula, Santika Nusajaya and Nikko Jakarta. As for the 5-star category, only 3 starred hotels showed occupancy of 70%: Hotel mulia, parklane and Aston Sudirman.

average occUPancY rate (aor) of 3-, 4- and 5-star hotels in jakarta

100% 80% 60% 40% 20% 0% 2007 2008 3 Star 2009 4 Star 1Q 2010 5 Star 2Q 2010 3Q 2010 4Q 2010

Average
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average occUPancY rate (aor)

The overall average room rate for this quarter rose by 5.5% QoQ, to Rp556,504, for 3- to 5-star hotels. ARR for 3-star rose to Rp335,554, from Rp320,054, in the previous quarter, with three hotels recorded the highest ARR: iBumi karsa, Harris Hotel and Grand kemang. In the 4-star category, ARR was registered at Rp478,431 this quarter, up from Rp455,745 last quarter. Three hotels in this category had high ARR: Sari pan pacific, Ambhara and Ciputra. Seven hotels in the 5-star category reached ARR of above Rp1 million, the top three for this quarter being kempinski Hotel Indonesia, The Ritz Carlton at SCBD and Grand Hyatt. meanwhile, the overall ARR for 5-star hotels was Rp855,526, up from Rp806,613 in the previous quarter.
average room rate (arr) of 3-, 4- and 5-star hotels in jakarta
Rp1,000,000 Rp800,000 Rp600,000 Rp400,000 Rp200,000 Rp0 2007 2008 3 Star 2009 4 Star 1Q2010 5 Star 2Q2010 Average
Colliers International Indonesia - Research

3Q2010

4Q2010

oUtlook
By 2011 the government will introduce a new branding - Wonderful Indonesia - as part of a tourism campaign to lure up to 7.7 million foreign tourists. The new tagline is expected to have stronger appeal, as it reflects Indonesias beautiful nature, unique culture, varied food, hospitable people and price competitiveness in various kinds of service. In 2010, around 7 million tourists visited Indonesia, up from 6.4 million in 2009. Nevertheless, hotels in Jakarta are not too dependent on the foreign market. Guest profiles in Jakarta are predominantly local Indonesians. In General, the Jakarta hotel market will grow in 2011, particularly benefiting from the number of mICE events scheduled to take place in Jakarta, including ASEAN sport events (Sea Games) and the General Assembly of UNESCo Intergovernmental Committee for Intangible Cultural Heritage, which will take place in Jakarta around November 2011.

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