Indonesia’s luxury hotel sector outpaces wider market recovery
New performance data shows luxury occupancy back at pre-pandemic levels, while Bali’s branded residences gain pace as ITX 2026 brings more than 400 tourism and hospitality leaders to Jakarta.
Luxury hotels in Indonesia have fully recovered to pre-pandemic occupancy while other segments remain 5.5 percentage points below previous highs.
From left to right; David Johnson, CEO - Delivering Asia; Matt Gebbie, Director – Pacific Asia, Horwath HTL; Edward Kusma, Director - Harmoni Bali; Sherona Shng, Regional Vice President – Operations, Asia, Langham Hospitality Group; Bill Barnett, Managing Director, C9 Hotelworks, Jesper Palmqvist, Regional Vice President – Asia Pacific, STR — Photo by C9 Hotelworks Ltd.
JAKARTA, INDONESIA — Indonesia’s luxury hotel sector has returned to pre-pandemic occupancy levels, outpacing all other hotel classes and signalling renewed strength in premium travel demand as the country’s tourism industry moves into its next phase of growth.
The recovery, alongside rising branded residence momentum in Bali, took centre stage at the inaugural Indonesia Tourism Xchange 2026 (ITX 2026), held today at The Langham, Jakarta before an audience of more than 400 industry leaders from hospitality, tourism, investment, data, sustainability and branded real estate.
As host venue and partner, The Langham, Jakarta provided a fitting setting for the inaugural forum, placing the discussion within one of the capital’s leading luxury hospitality addresses and connecting the event to wider conversations around premium travel, mixed-use development and branded hospitality.
Luxury travellers coming to Indonesia are not looking for replicas of global hotels. They are seeking meaning, context, and a sense of place. The brands that succeed here will be those that understand Indonesia’s cultural complexity and deliver experiences that feel deeply personal, not standardised.
Sherona Shng, Regional Vice President, Operations, Asia, Langham Hospitality Group
According to STR, the hotel analytics division of CoStar Group, luxury hotel occupancy in Indonesia for the 12 months ending March 2026 has returned to pre-pandemic levels, outperforming all other hotel classes, which remain 5.5 percentage points below their previous highs. Indonesia’s hotel rates have also risen by more than 40% since 2019, supported by market maturation and new high-end hotel supply.
The data points to a more confident outlook for premium hospitality in Indonesia. Building on this, luxury hotels have led average daily rate growth since 2023, while Bali’s luxury segment continues to record strong rate growth on the back of international demand and diverse source markets.
Indonesia’s luxury hotel occupancy returned to pre-pandemic levels for the 12 months ending March 2026, outpacing other hotel classes and underlining the resilience of high-end travel demand. — STR / CoStar
Alongside the luxury travel rebound, ITX 2026 also spotlighted the rise of branded residences in Bali. According to C9 Hotelworks research, Asia’s branded residences pipeline has reached IDR707 trillion (about USD40 billion) across 50,025 units, representing 30.3% year-on-year growth. Indonesia accounts for IDR24.7 trillion, or about USD1.4 billion, across 1,145 launched units, highlighting the country's regional importance.
Bali has emerged as one of Indonesia’s key branded residence markets, accounting for 25% of the country’s branded residence market value. The island now has more than 70 active hospitality-managed developments, with branded residences accounting for around 10% of active supply. Canggu/Berawa is the largest cluster, with 1,703 units across 25 properties, followed by Uluwatu, Seseh/Pererenan/Nyany, Seminyak and Sanur.
Organised by Horwath HTL, C9 Hotelworks, STR, QUO Global, Greenview and Delivering Asia, in partnership with Langham Hospitality Group, ITX 2026 has been created as a new annual platform for market intelligence, industry dialogue and commercial connections across Indonesia’s tourism and hospitality sectors. The event is supported by the Indonesian Hotel & Restaurant Association (PHRI), Jakarta Hotels Association (JHA) and Bali Hotels Association (BHA).
Under the theme “Reimagining Journeys”, ITX 2026 addressed how Indonesia’s tourism sector is evolving in response to luxury demand, hotel performance, branded residences, investment trends, design, technology and sustainability.
Branded residences have grown rapidly across Asia, with Bali now accounting for 25% of Indonesia’s branded residences market value. — C9 Hotelworks Market Research, 2026
The ITX 2026 programme opened with a session on Indonesia’s investment climate and 2026 outlook, led by Douglas E. Ramage, Managing Director, BowerGroupAsia Indonesia. The forum covered key forces shaping the sector, including luxury hospitality, hotel performance trends, technology, branded residences, leadership, culturally grounded design, ownership strategy and sustainability.
Indonesia’s opportunity is not simply growth. It is smart growth. Luxury hotels, in particular, face higher expectations on performance, capital returns and differentiation. Understanding which destinations, segments and concepts will truly perform in 2026 and beyond is now critical for investors and operators alike
Matt Gebbie, Director, Pacific Asia, Horwath HTL
Hotel performance trends were explored by Jesper Palmqvist, Regional Vice President – Asia Pacific, STR, alongside Erastus Radjimin, Founder & CEO, ARTOTEL Group, in a session focused on turning market insight into action.
Branded residences were examined in a dedicated session moderated by Bill Barnett, Managing Director, C9 Hotelworks, featuring speakers from Harmoni Bali, Marriott International and Langham Hospitality Group.
Branded residences are no longer a secondary product in Indonesia. They are becoming a primary driver of luxury real estate demand. What makes Indonesia compelling is the combination of brand trust, destination appeal and lifestyle aspiration. The challenge is aligning those elements in markets that are diverse, fragmented and culturally nuanced
Bill Barnett, Managing Director, C9 Hotelworks
The wider programme also covered hospitality technology, leadership, culturally grounded design, ownership strategy and sustainability, with contributors from ZUZU Hospitality, Mylighthouse, Plataran Indonesia, QUO Global, Banyan Group, Potato Head, THE 101 Hotels & Resorts, Amaroossa Hotels, Wyndham Tamansari Jivva Resort Bali and Greenview.
About C9 Hotelworks
C9 Hotelworks is led by founder and Managing Director Bill Barnett, who brings over 30 years' experience in the Asian hospitality and real estate sectors. Prior to founding C9 in 2003, Bill held senior executive roles in hotel operations, development and asset management. He is considered to be a leading global authority on hotel residences, and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference presentations at key events and contributes to numerous industry publications. For more information contact www.c9hotelworks.com.