State hotel operators HII, Natour to merge
State hotel operators HII, Natour to merge
JAKARTA (JP): Two state-owned hotel operators, PT Hotel
Indonesia International and PT Natour, will be merged into one
corporation as part of a consolidation process in anticipation of
an initial public offering (IPO) in 2003.
Although, the merger will be finalized early next year, the
two hotels have already been put under unified management called
Hotel Indonesia Natour (HIN).
HIN marketing director Tjuk Sumarsono said HIN would be
retained as the name of the surviving company in the merger but
the merged hotel operator would use Indonesia Natour (Inna) Hotel
Group as its brand name.
"The hotels under our management will be named, for example,
Inna Wisata, Inna Putri Bali, etc.," he said after installing the
new general manager of the Hotel Wisata Internasional in Jakarta.
Hotel Indonesia, however, would retain its name as it was
synonymous with Jakarta and the country, Tjuk said.
"The roundabout in front of the hotel is even popularly known
as Bunderan HI (the Hotel Indonesia roundabout)," Hotel Wisata
marketing manager Made Pudjayanti said.
Hotel Indonesia, established in 1962, was the first hotel of
international standard in the country.
HIN operates 16 hotels in Sumatra, Java and Bali, including
Hotel Indonesia and Hotel Wisata Internasional. It also manages
two airport catering services in Yogyakarta and Surabaya, Tjuk
explained.
Tjuk said that before the IPO, convertible bonds would be
issued and that many foreign investors had expressed interest in
the hotel group and were anxious to enter the business.
"Already, three investors have expressed interest in buying
our convertible bonds," he said.
The three investors came from the United States and Europe,
Tjuk said, but he declined to name them.
"Our president, A.M. Suseto, will soon give more details to
the press about the IPO," he said.
The funds to be generated from the issuance of the convertible
bonds would allow the group to start expansion projects which had
been delayed thus far, Tjuk said, citing among other things the
refurbishment of hotel rooms and facilities.
During the worst of the economic crisis in 1998, HIN recorded
net earnings of Rp 40 billion, which was an increase of more than
100 percent over 1997, due partly to the sharp fall of the rupiah
against the U.S. dollar.
"We charge for our rooms in dollars while our operating costs
are in rupiah," he explained.
As of September 2000, HIN had notched up income of Rp 240
billion, a 16 percent increase compared to the same period last
year, he said.
Tjuk stressed he was optimistic that the group's target of Rp
20 billion in net earnings would be achieved as the political
situation in the country was improving.
He said occupancy rates of the hotels outside of Jakarta were
increasing, with an average of 37 percent in Yogyakarta compared
to only 30 percent during the crisis, and 70 percent in Bali, up
from about 60 percent previously.
Jakarta has yet to see tourists coming back, Tjuk said, adding
that hotels in the capital were only about 35 percent occupied.
"Foreigners are still hesitant in coming to the capital, but
are more confident about going to other parts of Indonesia," he
said. (tnt)