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Research &

Forecast Report
4Q 2013
Jakarta
1st
Quarter
| Office
2015

Jakarta Property Market Report

Accelerating success.

Hotel Sector
Star-Rated Hotel

By Ferry Salanto
Associate Director | Research
Ferry.Salanto@colliers.com

The character of hotels in Jakarta is business hotel which rely


mostly on business activity for facilitating meeting, conference
and exhibition. In early 2015, two prominent names in hotel
industry officially open their business in Jakarta area including
Raffles Hotels & Resorts with 173 rooms and Fairmont Hotels
& Resorts with 380 rooms. In total these two hotels provide 553
additional rooms categorized as luxury class hotel. On contrary,
Jakarta hotel market registered a reduction in the hotel room with
temporary closure of the Four Season Hotel Jakarta. This was
Regent Hotel which was opened since 1995 and was operated by
Four Season years later. As at the end of 2014 the hotel called a
halt to the operation and will re-open after the next 3 years of
major renovation works.
In 2015 there will be another addition in the luxurious hotel
category located in the CBD area called The Westin Starwood
Hotels & Resorts Group that will provide 250 rooms. By 2015,
Colliers Indonesia registers an addition of 6,310 rooms in the
starred-rate hotels which will be dominated by 3-star hotel.

Cumulative Supply of Star-Rated Hotel Projects in


Jakarta
70
60
50
40
30
20
10

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3-star

4-star

Source: Colliers International Indonesia - Research

Research & Forecast Report | 1Q 2015 | Hotel | Colliers International

5-star

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

Colliers International

2005

Cumulative Supply of Star-Rated Hotel Rooms in


Jakarta
14,000
12,000
10,000
8,000
6,000
4,000
2,000

3-star

4-star

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

5-star

Source: Colliers International Indonesia - Research

Future Hotel Development Pipeline


Name of development

star
rated

str global
equivalent
rate

location

region

No. of
rooms

projected
completion
time

Harris Hotel Hayam Wuruk

Midscale Class

Hayam Wuruk

Central Jakarta

265

Harris Hotel Gunung Sahari

Midscale Class

Gunung Sahari

Central Jakarta

200 2015

Harris Hotel Cilandak

Midscale Class

Cilandak

South Jakarta

130

2015

Aston Neo

Midscale Class

TB Simatupang

South Jakarta

170

Q3 2015

Ibis Style

Midscale Class

Pantai Indah Kapuk

North Jakarta

200 Q4 2015

Prima Hotel

Midscale Class

Wahid Hasyim

Central Jakarta

150

Q4 2015

Santika

Midscale Class

TB Simatupang

South Jakarta

151

Q2 2016

Santika

Midscale Class

Yos Sudarso

North Jakarta

150

Q2 2016

Ibis Style

Midscale Class

Bangka Raya

South Jakarta

200 Q3 2016

The Acacia

Midscale Class

Kramat Raya

Central Jakarta

150

Q3 2016

Hotel @Fachrudin

Midscale Class

Tanah Abang

Central Jakarta

225

Q4 2016

Citizen M Hotel

Midscale Class

Mega Kuningan

South Jakarta

200 Q4 2018

Grand Mercure Kemayoran

Upscale Class

Benyamin Sueb, Kemayoran

Central Jakarta

200 2015

Novotel

Upscale Class

Pantai Indah Kapuk

North Jakarta

220 Q4 2015

SwissBelhotel - Kirana Commercial Avenue

Upscale Class

Boulevard Kelapa Gading

North Jakarta

300 Q3 2016

Aloft

Upscale Class

Wahid Hasyim

Central Jakarta

170

Q4 2017

Hotel @Perintis - South Tower

Upscale Class

Mega Kuningan

South Jakarta

112

2018

Sheraton

Luxury

Gandaria

South Jakarta

300 Q3 2015

InterContinental

Luxury

Pondok Indah

South Jakarta

300 Q4 2015

St Regis

Luxury

Gatot Subroto

South Jakarta

124

The Langham

Luxury

SCBD

South Jakarta

200 2017

Regent

Luxury

Gatot Subroto

South Jakarta

126

2018

Sofitel

Luxury

Mega Kuningan

South Jakarta

212

2018

Source: Colliers International Indonesia - Research and STR Global

Research & Forecast Report | 1Q 2015 | Hotel | Colliers International

2015

2016

Budget Hotel
For the last couple of year, budget hotel market has shown an
exponential supply growth since the last few years. As of 2015
there will be additional hotel rooms of 1,164. Since 2006, the
Amaris brand (Santika Group) has been the major budget hotel
operators with ten hotels under its management, Another active
budget hotel operators include Aston group with Fave and NEO,
Accor group with Ibis Budget brands and Tauzia Management
with POP! and the new brand called Yello. By end of 2015,
Tauzia Management will dominate hotel development especially
for budget hotel around Indonesia.

Cumulative Supply of Budget Hotel (Economy Class)


in Jakarta
45
40
35
30
25
20
15
10
5

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Source: Colliers International Indonesia - Research

Future Hotel Development Pipeline


Name of development

str global
equivalent rate

location

region

No. of
rooms

projected
completion
time

POP! Hotel Pasar Baru

Economy

Pasar Baru

Central Jakarta

112

2015

POP! Hotel Wahid Hasyim

Economy

Wahid Hasyim

Central Jakarta

90

2015

180

2015

80

2015

90

2015

Whiz - Cipete

Economy

Cipete

South Jakarta

@HOM - Cawang

Economy

Cawang

East Jakarta

POP! Hotel Gajah Mada

Economy

Gajah Mada

Central Jakarta

Whiz - Hayam Wuruk

Economy

Hayam Wuruk

Central Jakarta

200 2015

Yello Hotel Hayam Wuruk

Economy

Hayam Wuruk

Central Jakarta

372

2015

Amaris TB Simatupang

Economy

TB Simatupang

South Jakarta

151

2015

Source: Colliers International Indonesia - Research and STR Global

There are three major groups of hotel managements that are


actively expanding their business coverage including Tauzia
Management, Santika, and also Intiland. Santika, with Amaris
name has dominated the budget hotel market in Jakarta but
recently, Tauzia and Intiland are slowly but sure trying to
dominate the market. Up to 2016, Tauzia Management will
add four hotels with at least 700 rooms in Jakarta, followed by
Intiland which will expand with another two hotels providing at
least 490 rooms.

Research & Forecast Report | 1Q 2015 | Hotel | Colliers International

Most Active Budget Hotel Operators Based on


Number of Rooms
1,600
1,400
1,200
1,000
800
600
400
200
0
Santika
Year to Date

Tauzia

Intiland

Projected Supply During 2015

Demand Driver
Later in late 2014, the Indonesian Hotel and Restaurant
Association (PHRI) urged government to postpone policy of
banning all government institutions from holding meetings
and conferences in hotels and convention centers. In response
to this, it is indicated that government would relax the ban to
help boost hotel occupancy rates which had decreased since
the implementation of this strict measure. The hotel association
expects that the ban relaxation would likely increase occupancy
rates in hotels located in remote areas by 10 to 20% where 40 and
50% of revenues are sourced from government-related events.
For some periods hotel guest has been largely composed by
domestic guests. Most of foreign guests choose to stay in 5-star
hotels, other than that they may go lower by staying in 4-star
hotels mainly for business trip. Meanwhile, the majority of
domestic guest prefers to stay in 3-star hotels. In the last four
years, the average length of stay of foreign guests in 5-star hotels
has been slightly higher than domestic guests.

The Composition of Foreign and Domestic Guests

Source: Colliers International Indonesia - Research

100%

Most Active Budget Hotel Operators Based on


Number of Hotels

80%

16
60%

14
12

40%

10
20%

8
6

0%
4

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Domestic

2
0

Source: Jakarta Statistics

Santika
Year to Date

Tauzia

Intiland

Projected Supply During 2015

Source: Colliers International Indonesia - Research

Foreign

Since 2010, the number of passengers that arrived in Jakarta


posed an upward trend. By the end of 2014 the number of
passengers that arrived in Indonesia via Soekarno Hatta
International airport had reached 2,246,437, slightly increase
from last year. The highest number of the arrival was during June
September.

Research & Forecast Report | 1Q 2015 | Hotel | Colliers International

Number of Passenger Through Soekarno - Hatta


Airport

Average Occupancy Rate of Hotels in Jakarta


100%

2,500,000
80%
2,000,000
60%
1,500,000
40%
1,000,000
20%
500,000
0%
Feb 2014
Jakarta

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Feb 2015
CBD

Outside CBD

Source: STR Global


Source: Jakarta Statistics

Performance
The YoY hotel performance is not great particularly looking from
the occupancy rate performance. According to the STR Global
data point that Colliers refers to, the AOR (Average Occupancy
Rate) in February 2015 decreased quite significantly from 64.3%
to 53.7%. This occurred not only in the CBD area but also outside
the CBD area. There were some cases that probably affect such
situation. First is the Election Day where quite a few political
parties held congress and other political activity in hotel which
help lift the occupancy rate prior to the legislative election. This
explains that AOR in early 2014 was higher than in early 2015
Secondly is the issuance of new regulation, after the new line
of cabinet was inaugurated, by Ministry of Administrative and
Bureaucratic Reform that ban civil servants to hold meeting
in hotel. Apart from the abovementioned, the relatively low
occupancy rate will be further challenge by the continuing influx
of new hotel development in the future.

Average Occupancy Rate of Hotels in CBD Jakarta


100%

80%

60%

40%

20%

0%
Feb 2014
Luxury Class

Upper Upscale Class

Upscale Class

Upper Midscale & Midscale Classes+

Source: STR Global

Feb 2015

Research & Forecast Report | 1Q 2015 | Hotel | Colliers International

Average Occupancy Rate of Hotels in the Outside Average Daily Rate of Hotels in CBD Jakarta
CBD Jakarta
USD 200.00

100%

USD 180.00
USD 160.00
USD 140.00

80%

USD 120.00
USD 100.00

60%

USD 80.00

40%

USD 40.00

USD 60.00
USD 20.00
USD 0.00

20%

Feb 2014

0%
Feb 2014

Feb 2015

Upper Upscale Class

Feb 2015

Outside CBD

Luxury Class

Upper Upscale Class

Upscale Class

Upper Midscale & Midscale Classes+

Upscale Class
Source: STR Global

Source: STR Global

The decreasing performance of AOR hotel in Jakarta was followed


by the decreasing performance of ADR (Average Daily Rate). YoY
comparison shows year-to-date ADR reached USD94.09 down
from USD98.15 in the same period last year.

Average Daily Rate of Hotels in Jakarta

Average Daily Rate of Hotels in the Outside CBD


Jakarta
USD 100.00

USD 80.00

USD 140.00
USD 60.00
USD 120.00
USD 40.00

USD 100.00
USD 80.00

USD 20.00

USD 60.00
USD 0.00
USD 40.00
USD 20.00

Feb 2015

Upper Upscale Class

Upscale Class

Source: STR Global

USD 0.00
Feb 2014
Jakarta

Feb 2015
CBD

Outside CBD

Source: STR Global

Feb 2014

Research & Forecast Report | 1Q 2015 | Hotel | Colliers International

502 offices in
67 countries on
6 continents

Primary Authors:
Ferry Salanto
Associate Director | Jakarta
62 21 521 1400 ext 134
Ferry.Salanto@colliers.com

United States: 140


Canada: 31
Latin America: 24
Asia: 39
ANZ: 160
EMEA: 108

$2.3

billion in
annual revenue

Colliers International Indonesia


World Trade Centre 10th & 14th floor
Jalan Jenderal Sudirman Kav. 29 - 31
Jakarta 12920
Indonesia
TEL 62 21 521 1400

158

million square meters


managed

16,300

professionals
and staff

About Colliers International


Colliers International is a global leader in commercial real estate services, with over 16,300 professionals
operating out of more than 502 offices in 67 countries. A subsidiary of FirstService Corporation, Colliers
International delivers a full range of services to real estate users, owners and investors worldwide,
including global corporate solutions, brokerage, property and asset management, hotel investment
sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful
research. The latest annual survey by the Lipsey Company ranked Colliers International as the secondmost recognized commercial real estate firm in the world.
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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.

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