Bukit Uluwatu Villa, a listed property developer engaging mainly in the hotel business, has secured a Rp 400 billion ($42 million) loan from Bank Central Asia, the country’s third largest lender by assets, to help finance its expansion program.
Hendry Utomo, a director at the company, said that the loan will be used to help finance construction of two hotels in Bintan, a popular tourit destination in Riau, and in the Sudirman Central Business district in Jakarta, one of the busiest areas in the capital.
Hendry added that the loan will mature in eight years.
He said the construction of both hotels, which will go under the name Alila, will require Rp 580 billion in investment, with the company’s internal cash contributing the remaining Rp 180 billion.
The Alila SCBD Hotel is expected to be operational by 2013, while the Alila Bintan Hotel will be completed in 2014.
Hendry also revealed that the company has entered the food and beverage business with the formation of Boga Utama Internasional, a joint venture with Asia Leisure Network.
“The initial capital was less than Rp 10 billion,” he added.
He said that the company set a conservative target for this year. “We expect our revenue will be increased by around 11 percent to Rp 240 billion this year,” he added.
The company’s hotel business will account for 65 percent of the total revenue, while villa rentals will contribute for the remaining 35 percent. Bukit Alila currently runs two hotels in Bali, Alila Villas Uluwatu and Alila Ubud.
The company last year booked a net income of Rp 54.2 billion on revenue of Rp 216.7 billion. (Jakarta Globe)