Big loan for Batavia hotel

JAKARTA (JP): Bank Duta has arranged a syndicated loan of US$16.1 million to pay for the construction of the three-star Hotel Batavia Harmony on Jl. Cikini, Central Jakarta.

Bank Duta announced yesterday that, under an agreement signed Thursday, it would contribute $10.6 million to the loan, while Bank Danamon and Bank Papan Sejahtera would provide $2.75 million each.

Bank Duta spokesman Yan Partawijaya said the loan would mature in nine years, with a two-year period of grace.

Construction of the hotel is expected to cost $25.4 million. Investors are providing $9.3 million in equity.

International hotel chain Best Weston, originally from the United States, plans to operate the hotel. (jsk)