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Marriott signs hotel deals with Pakuwon for future capital city
The multinational hospitality service provider has become the latest to sign an agreement to develop commercial property in the new capital, after several local developers started making inroads in July.
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Marriott International CEO Anthony Capuano (left) clasps hands with PT Pakuwon Jati founder and president commissioner Alexander Tedja (right) in Jakarta on Sept. 13, 2023, the day the two sides signed an agreement for three hotels to be built in Indonesia’s future capital, while Nusantara Capital City Authority deputy head Dhony Rahajoe looks on. (Pakuwon Jati/Pakuwon Jati)
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arriott International has signed a hotel management agreement with local real estate developer PT Pakuwon Jati for three hotels in Nusantara, Indonesia’s future capital under development in East Kalimantan.
The planned properties would be situated within 1.2 kilometers of the new presidential palace and carry the hospitality service provider’s Westin, Four Points and Tribute Portfolio Hotel brands, Marriott International CEO Anthony Capuano told The Jakarta Post on Wednesday.
"We think those will be the first three of many hotels that will be added to the new capital," Anthony said.
Many businesses have yet to make up their minds about investing in the new capital as investors tread cautiously ahead of next year’s general election, according to which Tenggara Strategics, a think tank affiliated with the Post, as they wait for certainty about the next administration’s commitment to the megaproject.
Capuano said every real estate transaction required assessing risk factors, including political risks. Calculating those risks and finding the right partners and strategy enabled Marriott to take a step forward, he said.
“I've been on the other side of this, and I've seen the implications of waiting, right? Waiting often means all of the best sites are gone,” said Capuano.
“When we partner with the sort of partners that we're in business with, when we do our diligence, when we get comfortable with the progress on these sorts of projects, I think our inclination is to move deliberately [and] rapidly to ensure that we've aligned ourselves with the best partners and we're able to secure the best locations,” he added.
