Luxury Hotel Leaders

Indonesia’s Luxury Hotel Boom: Why Bali Is No Longer the Country’s Only Five-Star Destination

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In the latest Where2FromHere podcast, 25hours Hotel The Oddbird Jakarta General Manager Michael Gaehler explains why Indonesia’s luxury hotel scene is expanding far beyond Bali, and why the country’s next generation of world-class destinations deserves the world’s attention.

For decades, the conversation around luxury travel in Indonesia has begun and ended with Bali.

It is easy to understand why. The island has become one of the world’s great luxury destinations, home to globally recognised brands including Capella, Four Seasons, Aman, Bulgari, COMO, Mandapa, Alila, Regent and countless independent boutique retreats that have helped define tropical luxury.

Yet a fascinating shift is quietly taking place across the archipelago.

Indonesia, home to more than 280 million people spread across more than 17,000 islands, is entering a new era of luxury hospitality. While Bali continues to flourish, destinations such as Jakarta, Labuan Bajo, Raja Ampat, Sumba, Lombok, Yogyakarta and even parts of Sulawesi are increasingly attracting significant investment from international hotel brands alongside an exciting wave of home-grown luxury operators.

It was this transformation that formed the backdrop to my latest episode of the Where2FromHere podcast with Michael B. Gaehler, General Manager of 25hours Hotel The Oddbird Jakarta—the first 25hours hotel in Asia and one of the region’s most talked-about lifestyle hotel openings.

25 Hours Oddbird Jakarta

Having recently spent several days reviewing the hotel myself, I had already seen first-hand how dramatically Jakarta’s luxury landscape has evolved. Gone is the outdated perception of Indonesia’s capital as merely a business stopover. Instead, Jakarta has become one of Southeast Asia’s most exciting culinary, design and hospitality cities, where sophisticated restaurants, ambitious wellness concepts, rooftop bars and architecturally bold hotels are redefining urban luxury. Click here for more on where to go to eat in Jakarta.

Our conversation explored far more than the hotel itself.

We discussed how the global luxury traveller has changed dramatically over the past decade. Increasingly, travellers are seeking destinations with personality rather than predictability. They are looking for experiences that feel authentic, connected to local culture and capable of surprising them rather than simply delivering another beautifully designed room.

That philosophy sits at the heart of the 25hours brand.

Born in Germany and now part of Ennismore, 25hours Hotels has built a reputation for challenging many of the conventions traditionally associated with luxury hospitality. Rather than pursuing uniformity, every property is designed around the character of its city, celebrating local stories, creativity and community in ways that encourage guests to become part of the neighbourhood rather than simply observing it from behind the walls of a hotel. Read my full review of 25 Hours Oddbird Jakarta here.

Copa at 25 Hours Oddball Jakarta

The Jakarta property continues that philosophy across its 38-storey tower with 210 guest rooms, 135 serviced apartments, vibrant dining venues, wellness facilities and creative public spaces overlooking the city’s rapidly changing skyline. For more on luxury Jakarta, read here.

During our discussion, Michael shared valuable insights into what today’s luxury traveller is seeking and why lifestyle hotels have become one of the fastest-growing sectors within global hospitality. Design remains important, but it is no longer enough on its own. Modern luxury increasingly revolves around atmosphere, storytelling, wellness, culinary experiences and creating genuine emotional connections with guests.

It is a conversation that extends well beyond Jakarta.

Across Indonesia, luxury hospitality is entering one of its most dynamic periods. International investment continues to flow into destinations outside Bali as travellers become more adventurous and seek experiences that combine exceptional accommodation with extraordinary natural environments and cultural authenticity.

Destinations such as Raja Ampat continue attracting luxury expedition travellers, while Labuan Bajo has emerged as the gateway to Komodo National Park and a growing collection of high-end resorts. Sumba has developed a reputation for barefoot luxury, Lombok continues its steady evolution as an alternative to Bali, and Jakarta itself has become a destination increasingly worthy of its own dedicated city break.

Sudamala Resort Komodo a new destination for a lot of travellers to Indonesia

Importantly, Indonesia’s growth is not being driven solely by international brands.

Some of the country’s most exciting hospitality stories are being written by Indonesian owners and operators creating hotels, restaurants and wellness experiences deeply connected to local culture. Alongside global names, independent Indonesian brands are helping redefine what modern Asian luxury can look like.

That diversity is creating one of the region’s most exciting hotel landscapes.

Throughout the episode, Michael also reflects on leadership, building strong hotel cultures and the importance of empowering teams to create memorable guest experiences. Having worked internationally before returning to lead The Oddbird, his perspective offers a fascinating glimpse into the challenges and opportunities facing luxury hospitality in one of Asia’s fastest-evolving markets.

For anyone who still believes Indonesia begins and ends with Bali, this conversation serves as a timely reminder that one of the world’s most exciting tourism destinations is far larger, richer and more diverse than many travellers realise.

As someone who has spent years reviewing hotels throughout Indonesia—from Bali and Jakarta to emerging destinations—I genuinely believe the country is only just beginning to realise its extraordinary luxury tourism potential.

The future of Indonesian hospitality won’t belong to a single island.

It will belong to an entire archipelago.

Click here for more about 25 hours Jakarta:

Renae Leith-Manos

Renae elegantly traverses the globe, curating the most exquisite personalised travel, dining, and wellness experiences for discerning women. With over 25 years of distinguished journalism, her work has illuminated the pages of prestigious magazines, newspapers, and digital platforms. Renae’s expertise transcends travel writing; she is a coveted speaker and coach within the luxury hotel industry. Balancing her professional pursuits with a delightful contradiction—a passion for fitness and an indulgence in dark chocolate—Renae infuses a unique blend of authority and Australian charm into the realm of luxury travel.

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