Savoy Homann to convert Kota buildings into hotel

Savoy Homann to convert Kota buildings into hotel

JAKARTA (JP): State-owned trading company PT Cipta Niaga
signed an agreement yesterday with hotel-chain operator PT Savoy
Homann for the conversion of vintage buildings owned by Cipta in
Kota, North Jakarta, into a hotel.

Cipta Niaga president Eddie M. Gunadi said the conversion of
the buildings, which were erected in the 17th century by the
Dutch colonial administration, will cost about US$10 million, of
which 55 percent will be borrowed.

The planned hotel is to have 120 rooms of various types. It is
due to be opened in early 1998.

Eddie said the development of the hotel, to be called
Heritage, is consistent with the government's program of
rejuvenating historical buildings in Kota, which is Jakarta's old
city.

Savoy Homann's hotels are mostly located in West Java. Savoy
Homann president H.E.K. Ruhiyat said that the two companies will
cooperate in making the hotel a tourist attraction, rather than
simply a place to eat and sleep.

Expressing optimism about the hotel's future, Ruhiyat said
Indonesia is going to need a larger number of hotels to
accommodate the growing number of foreign tourists.

The government estimates that, by 2005, annual tourist
arrivals will have reached 12 million, making the tourism sector
Indonesia's largest foreign-currency earner.

Ruhiyat said Savoy Homann would operate the hotel under a 20-
year build-operate-transfer agreement.(13)