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Choice wins deal to manage Quality Hotel

| Source: JP

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)

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