Marketbeat Reports, Q4 2023

As of December 2023, the average occupancy rate for leased warehouses in the Greater Jakarta area stood at 86.0%, indicating a decrease of around 0.9% compared to that in the previous quarter. Market was observed to remain competitive as additional new supply continued. Similar demand trend as in the previous quarter was observed with demand mainly came from third-party logistic followed by fast-moving consumer goods (FMCG) and automotive sectors.

Pricing: Prices Remained Stable

The industrial land price remained stable through the last several quarters, with currency exchange rate fluctuations as the main factor affecting the price changes. The average industrial land price stood at IDR 2,686,000 per square meter over the review quarter, marking a modest quarterly increase of 0.7% and a year-on-year growth of 2.7%.

Industrial land price is expected to increase in the next quarters as the result of limited availability of land in favorable areas. In anticipation of the ongoing market competition, average rental rate of leased warehouses in the Greater Jakarta area will remain relatively stable, at around Rp 77,000 per square meter per month.

Hotel H2 2023

Supply: No Additional Rooms in 2023

Slowing down of construction progress of several hotel projects continued and most completion time of the proposed hotels are rescheduled to 2024. The total cumulative supply of 3-star to luxury hotel rooms as per end of 2023 was recorded at 42,922 rooms.

Approximately 1,066 hotel rooms in Central Jakarta and the CBD area are scheduled to operate in 2024 with the following star rating distribution: 24% of 3-Star, 61% of 4-Star, and 15% of 5-Star respectively.

Demand: The Increase in Mice Activities Led to Demand Increase of Hotel Rooms

PT Angkasa Pura II (Persero) as the operator of Soekarno-Hatta International Airport recorded the number of passenger movements during the Christmas 2023 and New Year 2024 period at 2.62 million people (YoY +13%).

It is estimated that the target total passenger arrivals in 2023 of 23 million passengers will be achieved. The positive growth in the number of visitors to Jakarta was also led by the more active MICE activities in Jakarta.

The increase in MICE activities such as Government / BUMN / corporate institution meetings (KTT ASEAN 2023), international music concerts (WestLife, Blackpink, Java Jazz Festival, We The Fest, ColdPlay), sporting events (Indonesia Masters 2023, Jakarta E-Prix, Indonesia Terbuka 2023, FIBA World Cup 2023, U-17 FIFA World Cup 2023) and exhibitions have led to the increased demand for hotel rooms in Jakarta Room vacancy rates continued to decline to 33.0%, 36.4%, 33.9%, 40.3% for 3, 4, 5 and Luxury star hotels, respectively.

ADR: ADR Has Returned to Pre-Pandemic Levels

The average room rate (ADR / night) at the end of 2023 was recorded at: 3 stars – Rp 460,570 (13% YoY); 4 Star – Rp 816,320 (16% YoY); 5 Star – Rp 1,791,130 (20% YoY); and Luxury – Rp 2,253,460 (12.5% YoY) respectively. Room rates (ADR / night) have returned to the 2019 pre-

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