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)