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)