Apartment to business hotel conversion: opportunity or threat to unit ownership rights
Elsi Kartika Sari, Ahmad SabirinPurpose
This study aims to examine the legality of apartment-to-hotel conversion in Indonesia by integrating property law, consumer protection, tourism regulation, taxation and spatial planning into a single legal governance framework.
Design/methodology/approach
The method used is a qualitative approach with normative juridical analysis and case studies on several apartments that have undergone functional changes.
Findings
The findings indicate that the legality of converting residential apartment units into serviced apartments depends on compliance with apartment licensing, consumer protection and commercial regulations. Such conversion requires conformity with the designated building function, approval through the PPPSRS governance mechanism where applicable and fulfillment of the legal requirements governing commercial accommodation. Failure to comply may create legal uncertainty concerning ownership rights, consumer protection, licensing and taxation obligations. This study recommends harmonizing apartment, tourism, consumer protection and taxation regulations, strengthening government supervision, ensuring transparency in the legal status of serviced apartments and clarifying the legal responsibilities of unit owners, managers and accommodation operators to provide greater legal certainty for all stakeholders.
Practical implications
This study provides practical guidance for policymakers, local governments, developers, apartment unit owners and hospitality operators in regulating the conversion of residential apartments into serviced apartments. Its integrated legal framework can be used to improve licensing procedures, clarify ownership and operational rights, strengthen consumer protection and harmonize property, tourism, taxation and spatial planning regulations.
Originality/value
This study offers a novel legal perspective by examining the conversion of residential apartments into serviced apartments as a cross-sector issue involving property law, consumer protection, tourism regulation, taxation and spatial planning. Unlike previous studies that primarily focus on apartment ownership or consumer protection separately, this study develops an integrated legal governance model for regulating apartment conversion.