JAKARTA. Publicly-listed hotel owner and manager PT Hotel Sahid Jaya International Tbk (SHID) has secured Rp 180 billion (US$20 million) in loans from PT Bank CIMB Niaga Tbk (BNGA) to pay back debt and for hotel renovation.

“The credit facility from Bank CIMB Niaga will be used to settle Rp 120 billion of loans borrowed from Bank Mega, and Rp 60 billion will be allocated to finance hotel renovation,” Sahid announced Monday in a stock exchange filing.

The loans have a six year maturity period at 11 percent interest. The collateral was Hotel Sahid Jaya Jakarta land and building, located in the bustling Sudirman area of Jakarta.

Hotel Sahid Jaya Jakarta currently operates 450 rooms with an occupancy rate of about 70 percent. The company aims to increase the number of hotel rooms to boost revenues using the loans from Bank CIMB Niaga.

Sahid shares soared 4.08 percent on the news, trading at Rp 510 apiece as per 2:53 p.m. Jakarta time. The shares have jumped 25.03 percent so far this year, outperforming the broader Jakarta Composite Index’s (JCI) 3.79 percent gain. (Esther Samboh, The Jakarta Post)

Editor: Edy Can