Hotel Indonesia to sell shares

Hotel Indonesia to sell shares

JAKARTA (JP): The state-owned hotel management chain PT Hotel
Indonesia International Corporation and Natour (HIIN) plans to
offer part of shares to the public to raise funds for the
renovation of its hotels, an executive says.

"We need about Rp 300 billion (US$138.8 million) for expansive
refurbishment at 15 of our 17 hotels around Indonesia," HIIN's
president, Widjaja Sugarda, told reporters during a workshop for
journalists at the Ministry of Tourism, Post and
Telecommunications here yesterday.

He said that the company is also likely to establish one or
more join ventures with international hotel management firms or
domestic companies to renovate or manage some of its hotels.

"We are considering proposals from several international hotel
chains -- including Accor, Travelodge, Sheraton, and Radisson --
who want to join a cooperation with us in running our hotels," he
said.

The shares will hopefully be offered in 1997, while the
establishment of a join venture may take place sooner, he said.

HIIN is a merger between PT HII and PT Natour, which used to
operate seven and 10 hotels respectively. Under a decree from the
Ministry of Finance, the two companies merged last September.

Widjaja said that the two companies suffered total losses of
Rp 16 billion, much more than the Rp 620 million they had taken
in the previous year. The increase in losses was caused mostly by
a fire which razed Hotel Bali Beach, which now operates a total
of 605 rooms after being renovated.

He explained that renovation works will cost $75,000 per room
of a two-star or three-star hotel and $110,000-$180,000 per room
of a four-star or five-star hotel.

"This year we expect to reduce our losses to Rp 5 million," he
said. (icn)