Former Mutiara 2 Hotel Finally 'Sold' After 4-Month Auction, Who Will Manage It?
One of the assets of the Yogyakarta Special Region (DIY) government, namely the former Mutiara 2 Hotel, Malioboro, Yogyakarta City, has finally found a new operator after undergoing an auction process for 4 months. The local government and the new operator have recently signed a cooperation agreement for the use of the property.
The Regional Secretary (Sekda) of DIY, Ni Made Dwipanti Indrayanti, explained that the cooperation agreement signed by both parties is valid for the next 30 years.
“The agreement was signed yesterday (February 24th). It’s not a lease, but rather a cooperation agreement for the hotel,” Made said when contacted on Wednesday (February 25th, 2026).
“The contract is for 30 years, if I’m not mistaken. This type of agreement does have a long term, especially since this is an old building, and it requires innovation and creativity to revitalize it,” she added.
Made explained that this long-term contract also aims to provide space for the new operator to rehabilitate the building. The building has been unused for a long time and requires time to be revitalized.
However, Made said that the operator will still be limited in the building renovation process. The location of the building in the Philosophical Axis area is the reason. The operator must also obtain approval for any actions taken on the building.
“It will take about a year for the rehabilitation, because there are quite a few things that need to be fixed. The name will probably be changed, depending on the tenant,” Made said.
“We will still follow the guidelines agreed upon in the management plan, including not making too many changes to what already exists. If it’s about beautifying or strengthening the structure, that might be okay,” she continued.
Made is still reluctant to disclose the identity of the operator in this cooperation. In this agreement, in addition to annual fees, the DIY government is also entitled to a share of the profits.
“There are annual fees, and when there are profits, around 67% or so will go to the local government,” Made said.
“The old furniture will not be used, and it does belong to the local government, not the tenant, so it will be adjusted to the modernization inside,” she concluded.
Previously, the DIY government announced an open auction for a third party to manage the former Mutiara 2 Hotel, which was announced twice in national mass media, on Monday (October 13th, 2025) and Wednesday (October 15th, 2025).
“Those who are interested, the operators, can take the documents. It was an open auction, we didn’t target anyone, but let them compete with their offers,” said the Head of the Financial and Asset Management Agency (BPKA) of DIY, Wiyos Santoso, on Tuesday (October 14th, 2025).