Hotel Prapatan's profits decline

JAKARTA (JP): PT Hotel Prapatan, the owner of the five-star Aryaduta Hotel, reported a sharp decline in its after-tax profits to only Rp 2 billion (US$853.970) last year despite a slight increase in revenues.

The company said in its 1995 annual report that it booked total revenues of Rp 53 billion last year, as compared to Rp 51 billion in 1994.

Of last year's revenues, Rp 46 billion were derived from its hotel operation and Rp 7 billion from the operation of its four restaurants.

Last year's revenues from the hotel operation indicated a 3 percent increase from Rp 45 billion in 1994. The restaurant operations increased 18 percent from Rp 7.1 billion.

The report said the occupancy rate dropped from 73 percent in 1994, to 70 percent last year. Its average room rate decreased slightly from $134.84 to $134.68.

"Unlike three to four years ago, our performance showed very little growth. It was because there were no changes in quality and quantity of our revenue generators," company president Norman Diah stated.

The annual report said the company needs an additional investment of $26 million for a planned expansion in two years.

The expansion includes the establishment of Hotel Aryaduta Pekanbaru in Riau, which is now 15 percent completed, and the establishment of three new restaurants in Bandung, West Java, and Surabaya, East Java.

The company will also manage a convention hall in Bapindo Plaza. The plaza is scheduled to open in June.

The report said the company has canceled a plan to purchase two apartment blocks.

"With these projects beginning operation, our annual revenues are estimated to reach Rp 100 billion by the year 2000," Norman said. (alo)