Hotel Performance in Jakarta, Surabaya, and Bali Has Improved in Q2 2023

Observing the improvement in hotels during Q2 2023, Colliers project that hotel performance in Q3 2023 will also see further enhancement.

Foto: Dok.
Foto: Dok. (Jakarta) – According to Colliers Research observations, certain hotels in Jakarta and Surabaya, especially those located near business and government hubs, are showing signs of increased activity.

This can be observed in the slight improvement in the Average Daily Rate (ADR) in Jakarta, which increased by 1.1% from Q1 2023 to Q2 2023. Surabaya also experienced a growth of about 2.8% in Q2 2023.

Colliers Indonesia Head of Research, Ferry Salanto mentioned that "business activities have returned to pre-pandemic levels, which is particularly significant considering the substantial contribution of the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector to the city’s hotels.”

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The MICE segment has also witnessed a resurgence in activity from both government and corporate sectors in Surabaya. The volume of MICE activities has expanded, allowing for the optimization of room capacities and accommodation of a larger number of attendees.  

As for Bali, the number of tourist visits, encompassing both domestic and international arrivals, is steadily increasing, simultaneously boosting the performance of hotels. This improvement is reflected in the ADR for Bali in Q2 2023, which also saw a 7.9% increase compared to Q1 2023.

Foresee an ongoing surge in occupancy rates, based on Colliers analysis, a surge in hotel room rates in Jakarta, over and above those observed in 2022, is anticipated.

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An increase in room rates is also anticipated in Surabaya, albeit potentially not commensurate with the surge in occupancy. While Colliers observe that room rates in Bali will be subject to customary adjustments in line with the prevailing occupancy levels.

Observing the improvement in hotels during Q2 2023, Colliers project that hotel performance in Q3 2023 will also see further enhancement.

This is especially true with the sequential occurrence of offline activities in Jakarta organized by the government, corporations, and events like music concerts and sports events. These factors are expected to contribute to the growth of the ADR in Q3 2023.

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Colliers Indonesia Head of Hospitality, Satria Wei also mentioned that there is a high likelihood of positive and stable growth in the hospitality business continuing into the Q3 2023.

"Additionally, during Q3, hotel activities in Jakarta are bustling due to various government events. Based on our observations, Bali is also poised for growth, primarily supported by the winter holidays in Australia and the summer holidays in Europe,” he added.

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