LPKR Optimistic About Continued Growth in Mall and Hotel Businesses

Jakarta, 3 July 2023 - PT Lippo Karawaci Tbk. (LPKR), Indonesia’s leading real estate and healthcare platform by total revenue, remains optimistic that its lifestyle business segments, particularly hotels and shopping malls, will continue recovering through mid-2024. Growth momentum was already evident in early 2023, following the government's decision to shift the COVID-19 pandemic status to endemic.

In the first quarter of 2023, LPKR recorded lifestyle segment revenues of IDR 296 billion, a 19% year-on-year increase compared to IDR 249 billion in Q1 2022. This growth was primarily driven by improved hotel occupancy rates and rising mall foot traffic. Hotel occupancy reached 63% in Q1 2023, up from 58% in Q1 2022, while mall traffic rose to 64%, up from 54% over the same period.

The average hotel room rate also increased to IDR 556,924 per night, up 16% YoY from Q1 2022. The rise in occupancy and average daily rates (ADR) reflects sustained growth in domestic demand, particularly from the leisure, government, state-owned enterprises (SOEs), and private corporate segments.

LPKR Group CEO John Riady noted that the easing of the COVID-19 pandemic’s effects has accelerated recovery in LPKR’s hotel and mall businesses. “Our mall and hotel operations posted strong operational performance in Q1 2023 compared to Q1 2022—clear signs of a robust post-pandemic rebound. We are targeting a full recovery of our mall business by mid-2024,” said John.

He added that growth in the hospitality segment was also supported by the reopening of Aryaduta Bali and an increase in both business and leisure travelers across LPKR’s hotel portfolio. Additionally, the easing of travel restrictions for East Asian tourists is expected to boost performance at Aryaduta Manado. LPKR’s hospitality strategy continues to focus on the family, business, and leisure markets while also increasing revenue from social events, meetings, and weddings. Through its Aryaduta brand, LPKR currently operates 10 hotels.

In the mall segment, LPKR aims to increase footfall by attracting anchor tenants, retailers, children’s entertainment operators, and supermarkets. The company is focused on returning its malls to pre-pandemic performance levels. Through PT Lippo Malls Indonesia (LMI), LPKR manages 59 malls across Jabodetabek, Bandung, East Java, Central Java, North and South Sumatra, and Eastern Indonesia, including Makassar, Manado, Bali, and Kupang.