Indonesia's Luxury Hotel Sector Leads Post-Pandemic Recovery

Announced May 13, 2026, Indonesia’s luxury hotel sector has fully rebounded to pre-pandemic occupancy levels, outperforming all other hotel categories. This recovery highlights renewed demand for premium travel as the country's tourism industry enters a new growth phase.

This strong performance, alongside growing momentum in Bali's branded residence market, was a key topic at the inaugural Indonesia Tourism Xchange 2026 (ITX 2026). The event, held at The Langham, Jakarta, brought together over 400 industry leaders from hospitality, tourism, investment, and real estate.

The Langham, Jakarta served as an appropriate venue for the forum, aligning discussions on premium travel and mixed-use development within a leading luxury address in the capital. As Sherona Shng, Regional Vice President, Operations, Asia, Langham Hospitality Group, observed, "Luxury travellers coming to Indonesia are not looking for replicas of global hotels. They are seeking meaning, context, and a sense of place."

Shng concluded that "The brands that succeed here will be those that understand Indonesia’s cultural complexity and deliver experiences that feel deeply personal, not standardised," as reported by Hospitality Net.

Our take: Indonesia's luxury segment has consistently demonstrated resilience. Its ability to not only recover but outpace the broader market underscores a fundamental shift in traveler priorities towards exclusive, experience-driven stays. The focus on cultural integration, as highlighted by Langham, is critical, as today's discerning traveler seeks authenticity over generic luxury.