The average YTD occupancy rate at the end of May 2024 reached 60%, an increase of approximately 0.4% compared to the same period in 2023. YTD occupancy rates for 3, 4, 5 and luxury star hotels stayed at 58.5%, 62.6%, 62.2 % and 56.8% respectively.
ADR: ADR TREND WAS RELATIVELY STABLE DURING 1ST HALF 2024
The improving market conditions in Jakarta in 2023 continued in the first half of 2024. The continued improvement in room demand caused by the recovery of business activity after the election, also helped maintain high average daily rates (ADR).
The average room rate (ADR / night) at the end of May 2024 was recorded at: 3 stars – Rp. 480,939 (6.9% YoY); 4 Star – Rp. 812,505 (0.4% YoY); 5 Star – Rp. 1,751,842 (0.1% YoY); and Luxury – Rp. 2,306,148 (5.4% YoY) respectively. Overall room rates (ADR / night) have returned to the 2019 pre-pandemic levels.
OUTLOOK: MARKET WILL IMPROVE GRADUALLY IN 2024
The recovery of business activities after the election will be most likely to improve the performance of the hotel sector. Many MICE activities are also expected to be held in 3rd quarter until the Jakarta Regional Election in November 2024.
The overall room vacancy rate is expected to improve in the 2024 to 33.0%. Positive growth in room rate (ADR / night) is expected to continue in line with the increase in room demand and is projected to reach about 15% by the end of 2024.
LANDED RESIDENTIAL H1 2024
SUPPLY: FOCUS ON SELLING OF READY STOCK UNITS
In the first half of 2024, less supply of newly launched products than that seen in the second half of 2023 was observed with a total of 2,979 units introduced in both the Greater Jakarta and Karawang areas. Supply in Tangerang continued to dominate the market, accounting for 59% of the new supply, and followed by Bekasi at 22%.
Upper segment units continued to represent the majority of new supply this semester, accounting for 38.3% of the total, while the Middle segment followed closely with a 24.3% share. The dominant of upper segment new supply reflects the strong market optimism on this segment which has been observed since the previous semester.
