T

he Artha Graha Network, a diversified business conglomeration controlled by tycoon Tomy Winata, has courted MGM Hospitality to run the management of hotels, apartments and convention centers in the upcoming Signature Tower that will be built by its subsidiary, PT Danayasa Arthatama.

Danayasa will start building the 638-meter building later this year and is expected to be completed by 2020. Signature Tower, which will be Indonesia’s tallest and the world’s fifth-tallest building is expected to cost about US$2 billion.

“We admire MGM Hospitality as an owner and operator of world-class hotels. It will be the first time for them to do business in Indonesia. By collaborating with MGM, hopefully we can create a different atmosphere in Jakarta,” said Danayasa director Agung Prabowo in a telephone interview on Wednesday.

Both companies had not determined the value and time period of the contract. However, the signing was enough to show strong commitment of Danayasa and MGM toward the cooperation, Agung stated.

Using the Bellagio Hotel brand, MGM Hospitality will operate 290 super-luxury hotel rooms, which will be located on the 20 highest floors of Signature Tower.

The subsidiary of MGM Resorts International is also set to manage 350 hotel rooms and serviced apartments in the Signature’s south tower.

“We haven’t decided the hotel rate. But, considering that a luxury room hotel in Senayan costs about $350 to $400 per night, our spacious and luxury hotel room might cost about $500 to $600 per night when it is first launched, five years from now,” he estimated.

As stated in Danayasa’s press release received on Wednesday, the agreement was signed in Las Vegas in the US on Monday, and was attended by Tomy and several Indonesian high ranking officials, namely the National Counterterrorism Agency (BNPT) senior advisor Comr. Gen. Gories Mere, BNPT deputy chairman Brig. Gen. Petrus Reinhard Golose and a senior officer of Densus 88, the National Police’s counterterrorism unit, Sr. Comr. Martinus Hukom.

“The presence of the Indonesian police officers, who directly engage in counterterrorism efforts, sends a message about the positive and secure climate for investment and cooperation with foreign partners,” Tomy said in a statement.