Choice wins deal to manage Quality Hotel
JAKARTA (JP): PT Elangperkasa Pratama, a unit of the Bakrie Group, has appointed PT Choice Hotels Indonesia to manage the Aquila Hotel Jakarta, renamed Quality Hotel Jakarta.
Under an agreement signed here yesterday, Choice, an affiliate of the United States-based Choice Hotels International, will manage the hotel for a five-year period and another extendible five-year period.
Elangperkasa Pratama is a unit of PT Elang Realty acquired in March this year by PT Bakrie Capital of the Bakrie Group from businessman Hindoro Budiono Halim.
The publicly listed Elang Realty was then renamed PT Bakrieland Development.
"We join Choice to be part of an international hotel network, to benefit from their management and marketing capabilities and to increase our bottom line," said Elangperkasa director Kunkanthi B. Ismartono.
As one of the fastest growing hotel chains in Indonesia, Choice currently operates eight hotels in the country. In addition to the Quality Jakarta, Choice expects to open several other hotels in Jakarta and Surakarta in Central Java.
David Schaefer of Choice said that 1,500 rooms of 14 Choice hotels are scheduled to operate by the first quarter next year.
With 4,100 hotels open and under development in 43 nations, Choice operates several brands including Clarion, Quality, Comfort, Sleep Inn, Rodeway Inn, Econolodge and Mainstay Suites.
Administrative manager of Choice, Ellen Riupassa, said that the hotel industry was now focusing on three-star hotels.
"It's a good investment as the rate is more affordable for the majority of people," she said, adding that facilities and the service qualities had to be improved.
She was also optimistic about the future of the Quality Hotel Jakarta.
The 94-room Quality Jakarta is located on Jl. Jayakarta, on the border of Central and West Jakarta. Other star-rated hotels in the area include Ibis Mangga Dua, Dusit Inn, Sheraton Media and Mercure Jayakarta.
General manager of the hotel, Choki Soesilo, said that Quality Jakarta was ready to compete with existing hotels in the surrounding area.
"Since the opening in August 1995, the hotel has an average occupancy rate of 68 percent. We expect to increase the rate to at least 78 percent within the next first years under Choice management," he said.
He said the hotel would continue to target Asian business travelers and European tour groups. "Room rates will remain until the end of this year, ranging from about US$47 and $60 per night."
Bakrieland's director, Robert Sinaulan, said the Singapore- based Aquila, which formerly operated the hotel, would not be compensated. "The relationship was terminated in a good way."
Aquila is owned by Hindoro, who formerly controlled Elang Realty.
Sianulan said that Bakrieland had also signed an agreement with another U.S. hotel chain operator, Holiday Inn, to manage a five-star hotel in Yogyakarta previously called Aquila Prambanan.
"I don't know whether Aquila still exists or not. But the company is still managing the five-star Aquila Hotel in Bandung, West Java," he said, adding that the hotel in Bandung is not owned by Bakrieland. (04/icn)