THINC Indonesia 2025: Unlocking Hospitality’s Future in the Archipelago

The curtain falls on the landmark 10th edition of THINC Indonesia. It brought together dynamic leaders, investors, owners and advisors who are shaping Southeast Asia’s hospitality sector. Over two action-packed days, the conference delivered insights, industry-defining strategies and unforgettable memories, where the region’s brightest minds came together to map the next era of growth.

Let’s dive into the critical takeaways and emerging trends setting the course for Indonesia’s and Southeast Asia’s industry growth.

At the heart of the opening session, Manav Thadani, Founder Chairman of Hotelivate, called into question the long-held notion that “bigger is better” when it comes to hotel rooms. The data highlighted that across Southeast Asia, except for Indonesia and Thailand, occupancy and average daily rates have softened over the past decade.

A vivid case study spotlighted a compact 14 m² room that, despite its modest size, witnessed a more than doubling of its Average Daily Rate from $19 to $41 after a thoughtful renovation costing only $3,000 per key. This underscores a growing consensus: it’s not the size but location, design, and the guest experience that drive revenue growth. Smart, efficient, and guest-centric room designs are winning the race for profitability.

In a frank fireside chat, Lada Shelkovnika from Watson Farley & Williams and Kieran Bestall of Ares Private Equity peeled back the layers on Management Agreements and investment hurdles. Performance clauses, exit options and transparent fee structures are now front and centre for owners wary of operational risk.

As investors eye the Indonesian market, challenges tied to land titles and regulatory opacity weigh heavily. Yet with Bali and Jakarta holding strong appeal, savvy investors are capitalizing on opportunities by demanding clarity, aligning interests, and strategically partnering with operators.

Wellness emerged as a megatrend with panellists including Ingo Schweder (GOCO Hospitality) and Devi Irianti (Fivelements Retreat Bali), sharing deep sector insights.

Boasting a global valuation north of $6 trillion and double-digit growth, the wellness market is reshaping guest expectations. The duo emphasized authenticity over “wellness washing”, with successful programming rooted in local culture, heritage, and innovation. Capturing both domestic residents and international visitors, wellness offerings now weave seamlessly from the booking stage through stay and beyond, offering brands profitable differentiation.

Former Minister Sandiaga Uno offered an inspiring reflection on Indonesia’s tourism transformation—creating 40 million jobs and contributing nearly 7.5% of GDP in 2024. Embracing sustainability, digitalization and emerging niches like eco-tourism and wellness, Indonesia’s government is vigorously diversifying its portfolio beyond traditional hotspots.

An engaging dialogue among leaders from Artotel, Tamara Group, Red Planet and others unpacked the critical balancing act facing hotel owners.

Amid cap rate compression and rising costs, leasing models and mixed-use developments offer fresh pathways to stable returns. Emerging destinations like Lombok and Gili rank highly for investor interest, while caution is advised given persistent challenges around exit options and asset valuations.

Insights from market intelligence leaders highlighted the imperative for real-time data and dynamic benchmarking. Navigating an increasingly fragmented scene requires precision tools to identify emerging trends and tailor operating and development strategies accordingly.

Discussions traversed the rise of AI, smart distribution, and guest personalization tools, underscoring a shift from optional extras to business-critical capabilities. Talent acquisition and retention emerged as pressing priorities, reminding stakeholders that human capital is the foundation on which all growth is built.

Hotelivate ended the first day of the conference on a high note with an exciting “Bar Hop” experience. The curated trail had three stops: Sofitel Bali Nusa Dua Beach Resort, The Westin Nusa Dua, and The Laguna, a luxury collection resort & Spa Nusa Dua, Bali. This provided delegates a dynamic opportunity to engage informally, fostering organic networking and cultural immersion. The marquee closing reception at the Conrad Bali in Nusa Dua was a spectacular closing with fireworks, ocean views, refined ambience and a festive spread.