Hotel Prapatan will run new hotel in Riau

Hotel Prapatan will run new hotel in Riau

JAKARTA (JP): PT Hotel Prapatan, a public company which owns
the five-star Hotel Aryaduta Jakarta, will construct a hotel in
Pekanbaru, Riau, with an investment of US$16.63 million.

The company's president, Nurman Diah, told reporters after its
extra-ordinary shareholder meeting here yesterday that the ground
breaking of the new hotel will be held next month, while its soft
opening is scheduled for May 1996.

"Based on our experience, the new hotel, to be called Aryaduta
Pekanbaru, will be managed by Hotel Prapatan, not by any
international hotel management firm," he said.

Hotel Aryaduta Jakarta, which launched its renovation and
extension projects in 1987, is managed by Hyatt. The property,
one of the most luxurious hotels in the city, offers 331 rooms
and had an occupancy rate of 71.9 percent in 1993.

He said that Aryaduta Pekanbaru will be a four-star hotel with
178 rooms.

A company director, Syamsul Bahar, said 81 percent of the
investment will come from commercial loans and the other 19
percent from company equity.

"We feel that operating a hotel outside Jakarta will be more
beneficial as hotel room supply in the city is growing faster
than demand," he said.

He also said that the planned four-star hotel will be situated
on a 2.2-hectare plot.

"The local administration of Riau supports the hotel's
development and in return it will have profit sharing based on a
lump-sum arrangement," he said.

According to Nurman, yesterday's meeting also agreed on the
company's plan to open five more restaurants in Jakarta with an
investment of $1.4 million.

The company currently runs three restaurants, two in Jakarta
and one in Surabaya.

He also said that his company's revenues and profit level
increased to Rp 51.66 billion ($23.4 million) and Rp 7.69 billion
respectively last year, from Rp 49.13 billion and 7.49 billion in
1993. (icn)