Pontjo denies wrongdoing with Hilton
Pontjo denies wrongdoing with Hilton
JAKARTA (JP): Pontjo Sutowo, a noted hotelier, denied on
Wednesday an allegation that he did not settle his service dues
to Hilton International, which previously managed his five
properties.
Pontjo said he met all the obligations stated in the contract,
including those related to service payments as disputed by the
hotel chain.
"I don't have any unpaid obligation because I've paid the fees
on all services to Hilton International," he said in his first
comment on his dispute with the hotel chain.
Hilton International announced in July it was withdrawing all
its services from all Hilton hotels in Indonesia following a
prolonged dispute with the hotel owner over payment.
Hilton International said the dispute emerged after the hotel
owners failed to pay Hilton International and group companies for
global sales and marketing and distribution services provided to
the hotels.
The Hilton's move affected five properties: the Jakarta Hilton
International, Lagoon Tower Jakarta Hilton International, the
Hilton Residence, Patra Surabaya Hilton International and Bali
Hilton International.
Hilton said the five properties, all controlled by the Pontjo
family, may continue to carry the Hilton name until the dispute
was settled. However, the Hilton said it would not be responsible
for the level of service guests at the five hotels received and
would refuse all liability and responsibility in relation to the
hotels and their guests until the dispute was resolved.
Pontjo said Hilton International had direct management control
over Hilton hotels in the country for a long period until in
1996, when his company Indobuildco and Hilton formed a joint
venture company, PT Kelola Santana, to take care of the
management and daily operation of the hotels under a 20-year
franchise scheme cooperation.
He said the disagreement between his company Indobuildco and
Hilton International did not involve the entire regular
management and service cooperation, but only additional services
provided by Hilton International on occasional requests.
Pontjo said his company had paid Hilton International for the
occasional services.
Pontjo said the move by Hilton International did not in any
way affect the quality of services provided by his hotels.
"The withdrawal has made no difference to the quality of our
service. Nor is it affecting our occupancy rate. People still
come here," he said, adding that the hotel's occupancy rate this
year stood stable at around 30 percent on average. (cst)