Inter-Continental Hotels and Resorts to enter RI

Inter-Continental Hotels and Resorts to enter RI

JAKARTA (JP): Inter-Continental Hotels and Resorts, one of the
world's largest privately owned hotel chains, plans to run a
Forum Hotel in Surabaya, East Java, which will become its first
hotel under the Forum brand and its third property in Indonesia.

A spokesman for Inter-Continental in Hong Kong, Chris Dillon,
told The Jakarta Post yesterday that the hotel company recently
signed a letter of intent with PT Intercope Antarnusa, a private
Jakarta-based firm, for the management of the planned four-star
hotel in Surabaya.

The two parties are negotiating the project, including the
construction schedule, he said.

Inter-Continental, which celebrates its 50th anniversary this
year, currently runs two properties in Indonesia: the Borobudur
Inter-Continental and the Bali Inter-Continental Resort in Bali.
The Borobudur Inter-Continental, which is now undergoing a US$65
million renovation, is slated to resume operations next March.

The company, owned by Japan's Saison Corporation, manages 179
properties in 67 countries. Of the properties, 117 are under the
name of Inter-Continental, 22 under the name of Forum and 40
under the name of its partners.

Separately, the Hong Kong-based Shangri-La Hotels and Resorts
also announced its plan to take an option to acquire up to 33
percent equity in PT Nusapuri Lestarijaya, a Jakarta-based
private company which owns a 5,282-square-meter site for the
construction of a 450-room Traders Hotel.

Traders is one of Shangri-La's brand names.

Shangri-La's public relations director, Joanne Watkins, told
the Post yesterday that her company made the plan on May 27 after
the company's shareholders meeting.

The planned hotel, to be established at a cost of $65 million,
will be located on Jl. Hayam Wuruk, near the city's Glodok
business area. The planned property, the first Traders Hotel in
Indonesia, is expected to open in 1998.

Shangri-La currently runs two hotels in Indonesia: the Bali
Dynasty in Bali and Shangri-La Jakarta. (icn)