Hotel Prapatan's profits decline<\/p>\n
JAKARTA (JP): PT Hotel Prapatan, the owner of the five-star
\nAryaduta Hotel, reported a sharp decline in its after-tax profits
\nto only Rp 2 billion (US$853.970) last year despite a slight
\nincrease in revenues.<\/p>\n
The company said in its 1995 annual report that it booked
\ntotal revenues of Rp 53 billion last year, as compared to Rp 51
\nbillion in 1994.<\/p>\n
Of last year's revenues, Rp 46 billion were derived from its
\nhotel operation and Rp 7 billion from the operation of its four
\nrestaurants.<\/p>\n
Last year's revenues from the hotel operation indicated a 3
\npercent increase from Rp 45 billion in 1994. The restaurant
\noperations increased 18 percent from Rp 7.1 billion.<\/p>\n
The report said the occupancy rate dropped from 73 percent in
\n1994, to 70 percent last year. Its average room rate decreased
\nslightly from $134.84 to $134.68.<\/p>\n
"Unlike three to four years ago, our performance showed very
\nlittle growth. It was because there were no changes in quality
\nand quantity of our revenue generators," company president Norman
\nDiah stated.<\/p>\n
The annual report said the company needs an additional
\ninvestment of $26 million for a planned expansion in two years.<\/p>\n
The expansion includes the establishment of Hotel Aryaduta
\nPekanbaru in Riau, which is now 15 percent completed, and the
\nestablishment of three new restaurants in Bandung, West Java, and
\nSurabaya, East Java.<\/p>\n
The company will also manage a convention hall in Bapindo
\nPlaza. The plaza is scheduled to open in June.<\/p>\n
The report said the company has canceled a plan to purchase
\ntwo apartment blocks.<\/p>\n
"With these projects beginning operation, our annual revenues
\nare estimated to reach Rp 100 billion by the year 2000," Norman
\nsaid. (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hotel-prapatans-profits-decline-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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