Investment In The Hotel Sector Will Reach USD 300-Million In 2023

Fortune Indonesia are reporting that property consultant Jones Lang LaSalle (JLL) Indonesia projects that the investment volume of the hotel business in Indonesia is expected to reach USD 300-million in 2023.

Julien Naouri, Senior Vice President, Investment Sales Hotels & Hospitality Group JLL Asia Pacific , said this was driven by the recovery of the tourism sector in Indonesia.

“The desire to acquire hotels and resorts in Indonesia is currently growing, with increasing interest from domestic and international investors due to the improving tourism industry and favourable economic conditions,” he said in a media briefing Q4-2022, Wednesday (2/1) .

He predicts that private capital will dominate in hotel acquisitions because buyers view hotel assets as immune to inflation. He continued by saying that until the end of 2022 Indonesia leads in terms of the volume of hotel investment value which totals USD 174-million.

JLL also predicted that by the end of 2022 the number of foreign tourist arrivals in Indonesia’s main cities such as Jakarta and Bali will have exceeded 2021 figures.

The performance of luxury hotels has also continued to improve, reaching levels close to pre-pandemic times, particularly in Bali, where in terms of ADR ( Average Daily Rate) for luxury hotels, it has grown significantly  beyond 2019, and offset relatively low occupancy rates, say Fortune Indonesia.

“Jakarta can still count on strong demand from domestic tourists while waiting for the arrival of foreign corporate tourists,” said Naouri.

Up until the end of 2022, two hotels opened; mid-range hotel Artotel Casa Kuningan, and luxury hotel St Regis Jakarta. Thus, the supply of hotel space in Jakarta has also increased to 58,105.

Naouri stated that the G20 event had a positive impact on the hotel business, not only in the hospitality aspect, but also in related industries such as food & beverage and retail.

In addition, he also said that the increase in revenue per available room (RevPAR) in December was mainly driven by a significant increase in the occupancy rate. Meanwhile, the average daily rate continues to improve, say Fortune Indonesia.

“On a monthly basis RevPAR is experiencing the same conditions as in 2019, even 14-percent higher in December 2022,” he said.

In December 2022, the occupancy rate of luxury hotels in Bali continued to recover, reaching 92-percent in the same month before the COVID-19 pandemic.

With international visitors continuing to arrive throughout 2022 and increased air transport, Bali is expected to welcome 4-million foreign tourists in 2023.

“Hotel occupancy will continue to increase. It is certainly possible to significantly surpass 2019 levels in the same period,” he said.

In Q4/ 2022, no new hotels have been completed in Bali. But in the next three years there will be around 2,000-additional hotel rooms. The total hotel space on the Island of the Gods is currently 44,906.

Source: Fortune Indonesia

Latest Article
QR Code Payments Between Indonesia, S. Korea Linked
According to reporting from Antara News, Indonesia and South Korea have agreed to expand cooperation...
President Jokowi Discusses Trade Cooperation with UAE
President Jokowi held a bilateral meeting with UAE President Mohamed bin Zayed Al Nahyan (MBZ) at Qasr...
Indonesia's Trade Balance Remains in Surplus in June 2024
  Indonesia’s Central Statistics Agency (BPS) announced a trade surplus of US$2.39 billion...
Minister: Downstreaming Leads to a Golden Indonesia
Speaking at a public lecture at the State Institute of Public Administration (IPDN) in Sumedang, West...
Indonesia Looks to Complete ICA-CEPA by Year-End
Indonesia’s Trade Minister Zulkifli Hasan is targeting to complete the Indonesia-Canada Comprehensive...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.