Ready-Made Hotel Business on Bali: Why Investors Are Betting on Already Operating Objects
A shift is occurring in the Bali real estate market. In 2024, according to information from the Central Bank of Indonesia, the volume of direct foreign investments on the island amounted to Rp 28.1 trillion (about $1.71 billion), exceeding the planned target by 71%. The majority of these investments went to the hotel sector, F&B, and real estate. Particularly noteworthy is that among the largest investors are Russia and France, which speaks not only to growing interest in the region but also to a change in capital strategy.
Today, investors — especially institutional and family funds — are increasingly choosing ready-made hotel business rather than construction “from scratch.” This is a new investment logic.
From “Build” to “Manage”: Trend Towards Turnkey Hotel Business on Bali
According to the Knight Frank Wealth Report 2025, 44% of family funds worldwide plan to increase the share of real estate in their portfolio in the next year and a half. At the same time, 14% of them consider hotel properties as a priority, especially in regions with growing tourism and stable rental yields.
Bali fully satisfies these criteria:
- In 2024, the island was visited by 6.3 million foreign tourists.
- Forecast for 2025 — more than 7 million, with steady growth.
- Main traffic: digital nomads, wellness tourism, Europe, and Asia.
- High average check and demand for long-term rentals in the premium segment.
Investments in Bali Real Estate: The Island Attracts Institutional Money
The fact that interest in Bali goes beyond private investors is also evidenced by the activity of large players.
“Last week I met with a representative of a financial company managing funds of one of the local pension funds. He admitted that their usual strategy — buying blocks of apartments at the foundation pit stage in major Indonesian cities — no longer works. Yields are falling, liquidity is lower than that of rental real estate on Bali”, says one of the market participants.
Now in focus are ready hotel and rental projects with an understandable business model, yields, and built-in management. This is also confirmed by the growing interest from family funds — both local and international. Their standard strategy is buying not one, but several units at once from one developer. They approach market analysis professionally, with teams of consultants, which gives them access to the best conditions.
Umalas Oasis: Case Reflecting the Trend
One of the projects that has attracted attention from both private and institutional investors is Umalas Oasis — a boutique complex of one villa and four townhouses in a gated residence in the Umalas area. The project is being implemented by the developer Dream Island Development and is already demonstrating stable yields.
“Even at the construction stage, we felt increased interest from funds in Bali real estate. Today, large investors, in contrast to entering at the foundation pit moment when there are many risks, want an asset that is already operating and generating stable income,” says Leonid Marchenko, CEO of Dream Island Development.
Important information for investors:
- Leasehold for 28 years + right to extend for 25 years.
- Full legal support.
- Transparency of all documents and financial reporting.
Why “Turnkey” is More Profitable for Premium-Class Villas on Bali
1. Reduction of launch time
Operational activity can be started immediately after the deal. No need to wait for permits and approvals, no risk of delays from contractors, no need to launch marketing from scratch. In the example of the Umalas Oasis complex, already in the soft opening stage, the first units were rented out in October 2025, demonstrating an investment yield of 8.5% per year — without additional investments and time losses. Projected ROI in the base scenario — 11-12%.
2. Transparency of economics
A ready-made object has a booking history, occupancy forecasts based on current demand, a financial model based on actual operational expenses (staff, utilities, OTA commissions). An investor can make a decision based on reporting. Such transparency is important for both private investors and funds, which are required to conduct due diligence before entering an asset.
3. Already built-in professional management
The key advantage of ready hotel assets is the presence of an operator who knows the object from the construction moment, has streamlined processes for placement, cleaning, maintenance, and work with OTA, provides regular financial reporting to the owner. In the case of Umalas Oasis, the management company is part of the developer's Dream Island Development structure, which ensures full control over service quality and expense transparency.
4. Risk minimization
An investor, acquiring a ready-made object, avoids the risk of non-completion, bureaucratic delays in obtaining permits, unforeseen costs at the construction stage (material price increases, logistics, design errors). In addition, the ready asset has already passed all inspection stages, including construction documentation, licenses, and compliance with local authority requirements.
5. Simplified access to financing
From the point of view of banks and private investors, ready-made hotel business is an asset with an appraised value confirmed by income, an understandable investment return model, and the possibility of collateral. This makes such projects preferable for obtaining mortgage financing, investment loans, as well as in M&A deals between funds. As noted in the PwC Global Real Estate 2025 report, banks in Southeast Asian countries are more willing to lend to income-generating objects with a history than to developer projects at the land stage.
Market of ready hotel objects — the new norm
The combination of high demand, professional management, stable yields, and growing interest from large players makes the sector of ready hotel real estate on Bali one of the most promising for investments in the region. And if earlier it was a market for private investors, now institutional money is entering Bali. Which means — the market is becoming mature, transparent, and even more interesting for investments.
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