Hotel Sultan Closure: The Effect on the GBK and Senayan Area

The closure of Hotel Sultan has raised questions about its impact on the hospitality industry in the Senayan area and its surroundings. The hotel’s location in the heart of the Gelora Bung Karno (GBK) complex has long made it a primary choice for corporate guests and event organisers.

Colliers Indonesia assesses that the hotel’s closure does not eliminate market demand. Instead, there is a shift of guests to other hotels around Senayan, Sudirman, and the Jakarta business district.

‘Generally, the hotel market is influenced by the dynamics around Senayan and its surroundings. However, we see the impact more as a shift in demand rather than a loss of guests,’ said Ferry Salanto, Head of Research Department at Colliers Indonesia, during a press conference on Wednesday (8/7/2026).

The majority of Hotel Sultan’s guests still require accommodation when visiting Jakarta. Consequently, their lodging needs will be redirected to other hotels offering similar access to the GBK area and the business centre.

This situation has the potential to provide additional occupancy for hotels in the vicinity, particularly during music concerts, sports matches, or large-scale events at the GBK complex.

‘Guests who previously stayed at Hotel Sultan generally still have accommodation needs, so there is a tendency for them to move to other hotels in the same area or locations that still provide access and convenience to GBK and SCBD,’ he explained.

Nevertheless, Ferry assessed that the impact will not be too significant on ordinary days. Jakarta still has a substantial supply of hotels to accommodate market needs.

Furthermore, the development of public transport means guests do not have to stay around Senayan to attend events in the area. Hotels in Thamrin, Kuningan, and Gatot Subroto remain easily accessible alternatives.

‘Because transport access is now much better, guests who have business at GBK do not have to stay in the Senayan area,’ said Ferry.

‘So essentially, the closure of Hotel Sultan does not reduce hotel demand in the area but rather changes the distribution of hotel demand to surrounding hotels,’ he continued.