Hyatt to set up local subsidiary, plans expansion
Hyatt to set up local subsidiary, plans expansion
JAKARTA (JP): Hyatt International Hotels, a United States-
based chain, is to set up a local subsidiary to manage its hotels
in Indonesia.
Company Regional Director for Indonesia Peter Stettler said
here Friday that the new firm, which would be called PT Hyatt
Indonesia, was expected to be officially incorporated by
September.
"We are in the final phase in the new company's
establishment," he said.
Based on a Ministry of Tourism, Post and Telecommunications
decree issued Nov. 7 last year, foreign chains operating luxury
hotels in Indonesia must set up local subsidiaries by 2000.
The foreign hotel chains may establish wholly owned
subsidiaries or joint ventures with local partners.
They are also required to employ no more than three
expatriates in senior management positions in each hotel by the
deadline.
Stettler said that Hyatt Indonesia would be wholly owned by
Hyatt, but "we'll look for potential partners in the future."
Other international hotel chains, like Accor, Shangri-La and
Hilton, have already set up Indonesian subsidiaries to manage
their local properties.
The government expects the local subsidiary requirement to
improve hotels' human resources because there should be fewer
strikes and other problems.
Hyatt currently manages five hotels in Indonesia; Hyatt
Regency in Surabaya, East Java, the Aryaduta and the Grand Hyatt
in Jakarta, and the Grand Hyatt and Bali Hyatt in Bali. The hotel
chain will open two further Hyatt Regency hotels, in Yogyakarta
and in Bandung, West Java, later this year.
Stettler said that Hyatt would also manage another properties
in Medan, North Sumatra, and Ujungpandang, South Sulawesi.
There are 176 Hyatt hotels and resorts in more than 39
countries around the world.
At least 50 overseas hotel management chains operate in
Indonesia. Those running five-star hotels include the U.S.
Holiday Inn, Westin, Inter-Continental, Hyatt and Sheraton;
Britain's Le Meridien; Canada's Regent & Four Seasons; Spain's
Melia-Sol; Hong Kong's Century International Hotels, Oriental,
Aman Resorts and Shangri-La; and Japan's Imperial and Nikko.
Other foreign chains are Hilton, Conrad, Kempinski, Marriott,
Accor, Ritz Carlton, Peninsula and Choice. (icn)