No, "itu" means "that"

"dia pergi ke hotel itu" mean "She/he goes to that hotel" in English

Without any context, because Indonesian doesn't have direct translation, "the" has many translations, such as "itu", "ini", "-nya", but unfortunately this doesn't work the other way round. Why? Because those translations have their own English word, "itu" (that), "ini" (this) and "-nya" (his/her/its)

It should be right :(