Indonesia Luxury Hotels Return to Pre-Pandemic Occupancy Levels

Indonesia Luxury Travel Growth Drives Hospitality and Branded Residence Demand

Indonesia’s luxury hotel sector has returned to pre-pandemic occupancy levels, reflecting renewed demand for premium travel experiences as the country’s tourism industry continues to evolve.

The recovery of the luxury hospitality segment, along with growing interest in branded residences in Bali, was a key focus at the inaugural Indonesia Tourism Xchange 2026 (ITX 2026), held at The Langham, Jakarta. The event brought together more than 400 representatives from hospitality, tourism, investment, sustainability, branded real estate and travel sectors.

As the host venue and event partner, The Langham, Jakarta, provided the backdrop for discussions around premium travel, mixed-use developments and branded hospitality projects in Indonesia.

Sherona Shng, Regional Vice President – Operations, Asia, Langham Hospitality Group, said travellers visiting Indonesia are increasingly looking for experiences that reflect local culture and destination identity rather than standardised hospitality offerings.

According to STR, the hotel analytics division of CoStar Group, luxury hotel occupancy across Indonesia for the 12 months ending March 2026 has returned to pre-pandemic levels, while other hotel segments remain below earlier occupancy benchmarks. Hotel room rates across the country have also increased since 2019, supported by new luxury hotel developments and growing international demand.

The report highlighted Bali as a key driver of premium hospitality growth, supported by international travellers and a broad mix of source markets. Luxury hotels have also led average daily rate growth since 2023.

Branded residences were another major focus at ITX 2026. Research from C9 Hotelworks showed that Asia’s branded residences pipeline has reached IDR707 trillion, equivalent to around USD40 billion, across more than 50,000 units. Indonesia currently accounts for IDR24.7 trillion, or roughly USD1.4 billion, across 1,145 launched units.

Bali now represents approximately 25 per cent of Indonesia’s branded residence market value, with over 70 active hospitality-managed developments across destinations including Canggu, Berawa, Uluwatu, Seminyak and Sanur.

The event was organized by Horwath HTL, C9 Hotelworks, STR, QUO Global, Greenview and Delivering Asia, in partnership with Langham Hospitality Group, and supported by several hotel and hospitality associations across Indonesia.

Under the theme “Reimagining Journeys”, ITX 2026 explored topics such as hotel investment, luxury hospitality, branded residences, sustainability, technology, culturally inspired design, and future tourism trends in Indonesia.

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