Indonesia’s luxury hotel sector has returned to pre-pandemic occupancy levels, outpacing all other hotel classes and signaling 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 center stage at the inaugural Indonesia Tourism Xchange 2026 (ITX 2026) on 12 May 2026, at The Langham, Jakarta. The event addressed how Indonesia’s tourism sector is evolving in response to luxury demand, hotel performance, branded residences, investment trends, design, technology, and sustainability. Participated by more than 400 industry leaders from hospitality, tourism, investment, data, sustainability, and branded real estate.
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 driven by international demand and diverse source markets.
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 IDR 707 trillion (about USD 40 billion) across 50,025 units, representing 30.3% year-on-year growth. Indonesia accounts for IDR 24.7 trillion, or about USD 1.4 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.
Organized 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).
