Wed, 24 Aug 1994

Conrad, JIHD sign hotel management deal

JAKARTA (JP): PT Jakarta International Hotels & Development (JIHD) yesterday signed an agreement to assign the American Conrad Hotels to manage a five-star hotel, Conrad Jakarta, which will start operating by the end of 1997.

The agreement was signed by JIHD's president, Jusuf L. Indradewa, and Conrad's president, Eric M. Hilton, in a ceremony here which was attended by Minister of Tourism, Post and Telecommunications Joop Ave and State Minister of Administrative Reforms T. B. Silalahi, a commissioner of JIHD.

Conrad is the international subsidiary of Hilton Hotels Corp. of the United States.

Jusuf said the planned hotel, with 42 stories, will occupy a 35,250-square-meter area at the Sudirman Central Business District (SCBD) on Jl. Sudirman, South Jakarta.

"The hotel will need a total investment of US$229 million, including $144 million for construction costs" he said.

The hotel will be developed by PT Jakarta International Artha, a join venture 90 percent owned by PT Danayasa Arthatama, a subsidiary of JIHD, and 10 percent by Conrad.

SCBD will have four hotels besides other high-rise buildings and facilities.

Jusuf said that the construction of the hotel will start early next year.

He also said that the 700-room hotel is designed by Brennan Beer Gorman/Architects of New York in association with PT Airmas Asri, a Jakarta-based private company.

Hilton also said that his company is now negotiating with a company on the management of a hotel in Surabaya, East Java. (icn)