Sarinah, a state-owned company that operates Jakarta’s first department store, plans to open the luxury Boutique Hotel in Bandung next year.
The president director of Sarinah, Mira Amahorseya, told reporters on Thursday that the cost of investment would be around Rp 90 billion ($9.5 million).
She said Boutique Hotel would be built on a 1,763 square meter plot of land in Bandung which has been acquired.
The hotel project marks the company’s first move into the hospitality business. Sarinah has expanded its department stores into various locations, but the company does not have any hotels yet.
Apart from building a hotel, Mira said the company planned to build Sarinah Square, a project to develop its existing Sarinah department store in MH Thamrin road into various property buildings, such as offices as well as apartments.
“The cost of investment for Sarinah Square is predicted to reach Rp 1 trillion,” she said.
Mira said Sarinah owned 1.7 hectares of land on Jalan MH Thamrin, where Jakarta’s first department store is located and still operates now.
She said it may need to talk with land owners in the surrounding area for possible cooperation to develop Sarinah Square.
The company will source the investment needed from internal cash and debt as well as potential funds from investors.
The project’s feasibility study is still being reviewed.