Intercontinental cuts deal

JAKARTA (JP): Publicly listed PT Jakarta International Hotels and Development (JIHD), the owner of the five-star Hotel Borobudur Intercontinental Jakarta announced on Thursday that international hotel chain Intercontinental Hotels and Resorts will stop managing the hotel as of Jan.1, 1999.

The company said that the two parties, after considerable discussion, have cordially agreed not to extend the present management contract, which expires on Dec. 31 this year.

"Despite the economic turmoil in the region, we remain extremely optimistic about the future prospects of the tourism industry in Jakarta and the growth potential of our hotels. To seize these opportunities, we will be appointing and announcing a new hotel management soon," JIHD's president Jusuf Indradewa said without giving further explanation of the reasons for contract termination.

Intercontinental has managed the Borobudur for the past 25years.

First opened in 1974, the Borobudur Intercontinental Jakarta was relaunched in November last year after a 22-month, US$70 million renovation program. (gis)