Sahid Group to manage six more hotels

Sahid Group to manage six more hotels

JAKARTA (JP): The Sahid Group, one of the country's leading
business groups, will manage six more hotels throughout the
country through its newly-established hotel chain, PT Sahid
International Hotel Management & Consultant.

The management contracts for the six hotels were signed
shortly after the new firm was launched by Coordinating Minister
for Production and Distribution Hartarto here over the weekend.

The six star-rated hotels to be managed by Sahid International
are Sahid Lippo in Cikarang, east of here, Sahid Makasar in
Ujungpandang, South Sulawesi, Sahid Tamara and Sahid Istana, both
in Lombok, West Nusa Tenggara, Sahid Ratu in Pekanbaru, Riau, and
Sahid Topas in Bandung, West Java.

Sahid Group's chairman, Sukamdani Sahid Gitosardjono, said
that the new subsidiary, set up with an investment of Rp 50
billion (US$21.7 million), will also manage the group's existing
portfolio of 13 star-rated hotels in 10 provinces with a total of
2,645 rooms.

Sukamdani said that by 1998, the number of Sahid hotels would
increase to 22 with 4,798 rooms as the new firm plans to manage
two more hotels in Mecca and Medina, both in Saudi Arabia, and
another one in Indonesia.

Management fee

"We have to admit that the presence of overseas hotel chains
in Indonesia has helped improve our professionalism in hotel
management. But we have to remember as well that the hotel owners
have to pay management fees to the foreign firms," Sukamdani
said.

The more hotels in the country managed by overseas chains, the
more foreign exchange would be spent, he added.

"In March 1994, there were 30 overseas hotel management firms
operating in Indonesia. The number has now reached 48," he said.

There were currently only 11 domestic hotel chains in the
country, he added.

He said that domestic hotel management firms had now begun to
compete against the foreign ones.

Among the leading domestic hotel chains are Hotel Indonesia
International & Natour, Aerowisata -- both state-owned companies
-- Hotel Santika, Intan Hotels and Resorts, Horison and Griya
Wisata.

Meanwhile, Sahid International's vice president, Yanti S.
Hardjoprakoso, said that the management fee required by her
company would range between 1.5 percent and 3 percent of the
hotel's annual sales revenues.

"The specific figure will depend on the classification,
whether a property is a three-star, four-star or five-star
hotel," she said.

She said that the new company manages hotels on the basis of
joint venture or operating-and-management agreements.

The new company can help as well to develop and refine a
client's hotel sales and marketing through an alliance, under
which its reservation system can be linked with Sahid's central
reservation system and corporate marketing office in the city and
its sales and representative offices in Singapore, Britain,
France and the United States. (icn)