SMRA Strengthens Recurring Income Through Hotel Investment
PT Summarecon Agung Tbk is strengthening its recurring income strategy through hospitality business expansion by introducing Harris Hotel & Convention Serpong in the Summarecon Serpong area, South Tangerang.
Investment in the hotel development reaches approximately Rp400 billion and forms part of the company’s strategy to increase recurring revenue contribution from commercial assets.
Summarecon President Director Adrianto P. Adhi stated that the hotel business is an important component in the company’s investment property portfolio.
“The investment property segment represents approximately 25% to 30% of our total business. From this portion, hotels contribute approximately 20%, and with the arrival of Harris Hotel, we are targeting its contribution to increase to approximately 23%,” said Soegianto.
According to Adrianto, Harris Hotel & Convention Serpong is the fifth hotel in Summarecon’s hotel business portfolio. The property is also designed to be directly integrated with Summarecon Mall Serpong, creating synergy between retail and hospitality sectors in one area.
“Harris Hotel & Convention Serpong will be the fifth hotel to add to Summarecon’s hotel business portfolio. In line with the development of Summarecon Serpong Integrated City, the presence of this hotel supports synergy with Summarecon Mall Serpong shopping centre,” said Adrianto.
He stated that the hotel development aligns with the company’s strategy of building an economic ecosystem within the township. This goes beyond relying solely on property sales but also includes long-term operational revenue.
Summarecon Director Soegianto Nagaria stated that hospitality and convention facilities are important infrastructure to support business activities in the area.
“The presence of Harris Hotel & Convention Serpong serves as supporting infrastructure for business activities that will strengthen Summarecon Serpong’s positioning as a Regional Hub, serving as a centre for economic, business, and meeting activities serving the Serpong area and surrounding regions,” said Soegianto.
Soegianto noted that Summarecon Serpong has been developed since 2004 as an integrated city combining residential, commercial, educational, and lifestyle facilities.
According to him, the maturity of the area’s infrastructure drives the need for hospitality facilities that can serve business activities, conferences, and MICE events (meetings, incentives, conventions, exhibitions).
The hotel, managed in cooperation with global operator The Ascott Limited, features 282 rooms and extensive convention facilities, including a ballroom with capacity for up to 1,500 people, three additional ballrooms, and 11 meeting rooms.
The Ascott Limited Indonesia Country Director of Brand & Marketing Irene Janti stated that the Harris brand expansion in Serpong reflects the growth potential of new urban areas in Indonesia.
“The opening of Harris Hotel & Convention Serpong demonstrates our confidence in Indonesia’s dynamic growth, particularly in developing urban areas like Serpong,” she said.
Harris Hotel & Convention Serpong General Manager Lut Abader added that the hotel targets an occupancy rate of approximately 50% in the first year of operation, with potential growth driven by business activities and visits to the shopping centre in the area.
“We target occupancy of approximately 50% in the first year, but market indicators show quite strong demand in this area,” said Lut.
For comparison, the average occupancy rate for hotels in Summarecon’s current portfolio is around 71%.
With a township development model combining mall, hotel, and convention facilities, the company hopes to strengthen sources of recurring revenue whilst driving economic activity in the increasingly developing Serpong area.