Intercontinental cuts deal

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)