Selasa, 31/05/2011

Positive Trend in Jakarta’s Hotel Sector

-jktproperty.com
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Positive Trend in Jakarta’s Hotel Sector

THE PERFORMANCE of Jakarta City’s hotel sector in Q-1 2011 showed a positive trend that was a continuation of last year’s positive development. Optimisms about future growth prospects in the hotel sector promoted some developers to plan new hotel projects. What are the prospects of the capital city’s hotel sector within the next 2-3 years? Early last month PT Lippo Karawaci Tbk. announced that it had reached an agreement with Marriot International Inc. to build two JW Marriot Hotels. One of them will be The JW Marriot Hotel West Jakarta St. Moritz in the St. Moritz superblock of Lippo Karawaci in Puri Indah in West Jakarta. The other will be The JW Marriot Hotel Jakarta Kemang Village in the Kemang Village superblock in South Jakarta.

The JW Marriot Hotel St. Moritz will have 208 rooms while the one in Kemang will have 275 rooms. “We are so enthusiastic about the presence of The Marriot Hotel West Jakarta St. Moritz and The JW Marriot Hotel Jakarta Kemang Village because both will be five-star hotels and will be located outside the CBD golden triangle,” said Michael Riady, CEO of The St. Moritz and Shopping Mall Group.

According to Michael, the two hotels will materialize Lippo Group’s plan of applying international standards at the two property mega projects. Investments of the two hotels are estimated at no less than Rp 1 trillion. The JW Marriot Hotel West Jakarta St. Moritz and The JW Marriot Hotel Jakarta Kemang Village will help improve the image of Puri Indah and Kemang as luxury area in Jakarta, equaling other elite real estate areas in the capital. ”When we launched The St. Moritz Penthouses & Residence in 2008, their sale prices were Rp12 million per square meter. At the moment, in 2011, we sell it at Rp20 million per sqm. When the project is completed in 2015, apartment prices are estimated to reach Rp 40 million per sqm. We create value for buyers, and at this time they fell so satisfied, all the more so with the presence of JW Marriot Hotel,” Michael said.

Previously, Agung Podomoro had teamed up with hotel operator Pullman, which is a new brand of Accor Group, to manage its hotel in the Podomoro City superblock. The Pullman hotel is the first hotel project of Agung Podomoro Land. Handaka Santosa, Vice President Director of PT Agung Podomoro Land, said that they would not only focus on vertical buildings, which they had done so far. “We are an integrated developer so why don’t we develop hotels if they are profitable,” he said. ”At the moment, Pullman Hotel is found in Bali only, which is Pullman Bali Legian Nirwana that was developed by PT Bakrieland Development Tbk. Pullman Hotel that will be built here in Jakarta will be the first Pullman Hotel in the capital. Our people love new things, which means that our new hotel will attract people,” Handaka said.

Early this year, PT Jakarta Industrial Estate Pulogadung (JIEP), which operates the Pulogadung industrial estate in East Jakarta, has also planned to build hotels to support the development of the estate and at the same time to profit from the MICE (Meeting, Incentive, Convention and Exhibition) market in East Jakarta which is high-potential. But at the moment it remains unclear whether exactly when JIEP will materialize its plan.

Positive Trend

A positive trend in the hotel sector was clearly shown visible through a research conducted by Colliers International Indonesia, whose results were published in May of this year. Example, 5-star hotels in CBD with total rooms of 6,962 in Q-1 2011 achieved 65.1% occupancy with room tariffs averaging Rp 971,106 per night. In South Jakarta (excluding CBD), there were 536 rooms of 5-star hotels that were offered at Rp 921,534 per night and achieved 67% occupancy on average.

Meanwhile, in Central Jakarta (excluding CBD), the occupancy of 5-star hotel rooms was 62.7% on average and they were sold at Rp 659,598 per night. Four-star hotels also achieved positive growth. The occupancy of the 1,570 rooms of 4-star hotels in CBD Jakarta averaged 73.5% in Q-1 2011, while their tariffs were Rp 531,085 per night on average. It was followed by South Jakarta (695 rooms; 71% occupancy; Rp 570,202 per night); Central Jakarta (4,193 rooms; 63.7% occupancy; Rp 433,403 per night); North Jakarta (888 rooms; 71.2% occupancy; Rp 493,972 per night); and West Jakarta (1,926 rooms; 70.5% occupancy; Rp 501,667 per night). Even 3-star hotels recorded quite high occupancy in Q1-2011.

Example, in South Jakarta, 3-star hotels reached 1,349 room in total, and their occupancy averaged 71.3% while their room tariffs averaged Rp 383.088 per night. Central Jakarta had 2,344 rooms with their tariffs averaging Rp 302,731 while their occupancy was 68.7% on average. In North Jakarta, there were 454 rooms with their occupancy reaching 77.1% and their room tariffs averaged Rp 338,835. Meanwhile, East Jakarta had 158 rooms in total, which were priced at Rp 289,216, with their occupancy averaging 68%.

The quite high occupancy rates of star-hotels in Jakarta have prompted developers to build new hotels. This trend of building new hotels, according to Colliers International-Indonesia, has been visible since 2008. As a result, in 2010 Jakarta received new hotel supply (supplies) among others Park Hotel Cawang in East Jakarta, which is a 3-star hotel with 176 rooms; Swiss-Belhotel at Grand Kartini in Gunung Sahari, Central Jakarta (4-star, 245 rooms); Hotel Harris in Kelapa Gading, North Jakarta (4-star, 226 rooms); Best Western Mangga Dua Hotel in Mangga Dua, Central Jakarta (4-star, 118 rooms); and Merilynn Park Hotel on Jl. KH Hasyim Ashari in Central Jakarta (5-star, 301 rooms). This year hotel supply will rise with the completion of Pullman Hotel in the Podomoro City superblock, a 5-star hotel with 370 rooms.

But, Colliers says that in the 2012-2015 period nine new hotel projects will enter the Jakarta market with a total of 1,900 rooms. Several new hotels that have been planned to enter the Jakarta market in 2012 are two 4-star hotels namely Aston Menteng and Hotel Emporium Pluit, which have 234 rooms and 280 rooms, respectively. Meanwhile, new supply will be the 5-star Raffles Jakarta Suites in the Ciputra World Jakarta superblock, which will have 323 rooms. In 2013, two new hotels will start operation in Jakarta namely the 123-room Santika Hotel in Indonesia Miniature Park (TMII) in East Jakarta; and the 275-room Hotel Jakarta Kemang Village.

In 2014, a new five-star hotel, The Regatta, will commence operation. It will have 152 rooms. Meanwhile, in 2015 JW Marriot Hotel West Jakarta St. Moritz in the St. Moritz superblock will enter the market. It will have 208 rooms. It is noteworthy that the MICE market in Jakarta will experience a shift if 5-star hotels like JW Marriot operate in St. Moritz and Kemang. Many seminar organizers will probably prefer holding meetings at JW Marriot Jakarta Kemang Village considering that 5-star hotels in South Jakarta, which is outside of CBD, will have to compete only with the 5-star Dharmawangsa Hotel which started operation 1997.

So far, in Kemang, meeting organizers have relied only on a few hotels like Grand Flora and Hotel Grand Kemang. But, the operator of JW Marriot Hotel West Jakarta St. Moritz, which is located in Puri Indah in West Jakarta, needs to work extra hard to market it if they want to become a key player in the international MICE market. This is because, despite its five-star status, seminar organizers will prefer holding meetings at 5-star hotels in CBD Jakarta like Hotel Indonesia Kempinski, Ritz Carlton, Grand Hyatt, Shangri-La, Four Seasons Hotel and Hotel Mulia Senayan. (Deddy H. Pakpahan)