Jakarta, Indonesia – The Hotel Investment Summit Indonesia #HISI opened Day 1 of the 9th Hospitality Indonesia Conference #HIC2026 with a close look at how capital, branding, and alternative asset strategies are reshaping the country’s hospitality investment landscape.
Across multiple panel discussions, industry leaders explored rising capital costs, shifting investor sentiment, M&A activity, brand equity, and the growing interest in alternative hospitality assets—from wellness retreats to experiential, destination-driven properties. The sessions highlighted how hotel investors and operators are adapting to new market realities while seeking opportunities beyond the usual gateway cities.
Capital recalibrated: ESG, ownership control, and secondary cities
In the session Analyzing Shifts in Hotel Property Market Dynamics and Investment Behavior, panelists discussed how macroeconomic pressures and evolving tourism trends are reshaping valuation and development strategies.
Norbert Vas, Managing Director of Optimum Hospitality, noted the growing importance of ESG in the market. “One thing that we see is that ESG is gaining importance. Also, when it comes to hotel valuation, access to capital, and lending, if you have a proper sustainability program, your asset will get a loan, improve in value, and be easier to sell,” he said.
He also highlighted a shift toward secondary and tertiary cities. “We also see a shift into secondary and tertiary markets, where investors now understand that the real money is in the domestic market and in secondary cities, where development costs are far lower,” Vas added.
Ownership models are evolving, with more hotel owners seeking greater control over their assets. Working with local asset management companies allows them to negotiate brand licensing or franchise agreements and directly influence operational strategy—an approach Vas noted has “significantly improved GP levels” compared to traditional models.
Scale and strategy: The power of local expertise
The panel Driving Scale in Indonesia: Synergizing Capital Growth and Strategic Partnerships explored how operators and investors can grow through collaboration, consolidation, and strong branding.
Jonathan Mokalu, Director of Business Development at Artotel Group, emphasized the advantage of local presence. “When he starts looking for operators, he looks for people who are on the ground in Indonesia. I think that’s what Indonesian hotel owners value — local expertise. We do have people on the ground…supporting hotels 24 hours a day. That’s our biggest strength. We know the market,” he said.
Mokalu also acknowledged the branding challenge. While local brands bring agility and market insight, international chains often carry more recognition and perceived certainty. “The challenge, however, is branding…Our challenge is to ensure that our brand is well known and carries certainty in the market,” he explained.
Diversification and alternative growth paths
Beyond traditional hotel assets, panels throughout #HISI examined alternative and experience-driven holdings, including co-living spaces, vacation rentals, wellness retreats, and lifestyle destinations. Investors are increasingly diversifying to capture evolving consumer preferences, with innovative financing models supporting this expansion.
Strong brand assets were also emphasized as a key growth driver. In a competitive environment, well-managed and iconic brands can enhance guest loyalty, maximize asset performance, and deliver long-term returns.
A market in transition
The Hotel Investment Summit Indonesia at #HIC2026 demonstrated that Indonesia’s hospitality sector is evolving rapidly. Investors are looking beyond primary destinations. Owners are taking more control. ESG is influencing valuations and access to capital. Alternative assets are gaining traction.
As panelists highlighted, the future belongs to operators and investors who combine local knowledge, strategic partnerships, and forward-looking investment strategies to create resilient, guest-focused, and profitable properties.
Stay tuned.
For more information, visit: www.hospitalityindonesiaconference.com/
For inquiries, please contact: delegate@hospitality-asia.com