Jakarta luxury hotels bet on business events despite slowdown

Premium hotels protect margins through pricing and experience.

Jakarta's luxury hotels are expanding meetings and event offerings despite a weaker market, betting that premium experiences rather than discounts will help them capture business as international events and government spending remain subdued.

Marriott International's The St. Regis Jakarta and The Ritz-Carlton Jakarta, Pacific Place, are investing in meetings, incentives, conferences, and exhibitions (MICE) facilities even as occupancy across Jakarta's upper-tier hotels is forecast to remain at 57% to 60% this year, according to a Colliers report.

Average room rates are expected to stay at $63 to $70, below 2024 levels, whilst the MICE segment is forecast to remain soft through at least mid-year.

Rather than compete on price, both hotels said they are focusing on higher-value events.

“We are maintaining rate discipline and building pricing around the overall experience rather than approaching the market with a discount-led mindset,” Sumit Joshi, general manager at The Ritz-Carlton Jakarta, Pacific Place, told Asian Business Review in Jakarta.

“Clients today are very clear on what they want to achieve from an event, and they are willing to invest when it is aligned to that objective,” he added.

St. Regis Jakarta is pursuing a similar strategy through brand positioning.

“This market dynamic reinforces our focus on value over volume,” Oliver Kreuzer, general manager at St. Regis Jakarta, said in an emailed reply to questions. “We focus on creating differentiated experiences that generate demand rather than simply discounting our event spaces.”

The approach comes as Jakarta's luxury hotel market becomes increasingly competitive. Colliers estimates the city had about 49,100 hotel rooms in the first quarter, with more premium properties due to open through 2028, including ParkRoyal Jakarta, Grand Mercure Satrio, and Andaz Jakarta. Several existing hotels have also rebranded since 2025.

Colliers said operators are shifting from pursuing occupancy towards protecting margins, a strategy Joshi said is shaping the Ritz-Carlton's MICE business.

“By being more targeted in our segmentation and more thoughtful in how we package and price our offerings, we are building a stronger and more resilient base for the rest of the year,” he said.

The hotels are also positioning themselves to benefit from longer-term industry growth. Business Research Insights projects the global MICE market to expand from $56.1b in 2026 to $103.1b by 2035, with Asia expected to account for about 44% of revenue.

The Ritz-Carlton Jakarta, Pacific Place has 3,778 square metres of event space, including Indonesia's biggest hotel ballroom with capacity for as many as 8,000 guests, whilst St. Regis Jakarta offers 3,299 square metres across ballrooms, meeting rooms, and executive event spaces.

Kreuzer said sustained growth would require a broader customer base.

“I don't believe domestic demand alone is enough for long-term growth,” he said. “To sustain this segment, we need a balanced mix of domestic corporations, multinational companies, regional meetings, and international incentive groups.”

Together, the two Marriott properties provide more than 7,000 square metres of event space, reflecting their view that Jakarta's premium MICE market will be driven by differentiated venues and pricing discipline rather than discounting.