As Bali’s Real Estate market continues to thrive, spurred on by its growing popularity from tourists and expatriates alike – owning a hotel property continues to offer real estate investors an alternative with reliable returns & exclusive lifestyle benefits.
Hotel investment properties offer full ownership of units within an operating hotel or resort with professional hotel management and operational teams. This allows owners to earn a reliable passive income from the hotel’s operations.
Previously, we’ve explored the pros and cons of standalone villa ownership and hotel property ownership, each catering to different investment and ownership goals.
Villas, while having the added flexibility of usage as a second home, require significant involvement in their management, maintenance, and upkeep. Hotel investment properties offer financial and management advantages , including:
- Hotels benefit from economies of scale, leading to higher occupancy rates and better cost management, which enhance profitability.
- Professional management in hotels reduces operational complexities for investors, ensuring properties are well-maintained and marketed without requiring daily involvement.
- Hotels, especially those under recognized brands, have a wider market reach and stronger brand recognition, attracting a consistent flow of guests, which standalone villas may find challenging to achieve.
- Hotels offer a range of services and amenities that boost guest satisfaction and loyalty, such as dining outlets, event hosting, and lifestyle facilities, providing a competitive edge over standalone villas.
- Investing in hotel properties spreads risk across the entire operation, whereas standalone villas depend heavily on individual performance.
In summary, Hotel investment properties in Bali allow investors to benefit directly from the success of the hotel’s operations.
To read more about the comparisons between the two property types, click here.
Looking Beyond the Financials
Beyond financial returns, hotel investment properties offer essential owner benefits, which are often overlooked. These can include:
- Free hotel or resort stays.
- Full access to hotel or resort amenities and facilities.
- Exclusive discounts, priority bookings, and VIP services and treatments including free room upgrades and event tickets.
- Discounts at affiliate businesses such as other resorts and hotel in different locations, restaurants, beach clubs, and much more!
These benefits enable property owners to take advantage of extended vacation stays for themselves and their families in highly regarded holiday destinations, without additional costs.
Global brands like Marriott, Disney, and Wyndham offer comparable vacation benefits starting from USD $24,000, plus thousands in annual fees. However, these options typically do not include ownership of a value-appreciating property or the potential for earnings.
With hotel property ownership, owners will enjoy the same experiences at no cost, along with ownership of a no-maintenance property that appreciates in value and earns steady passive income.
Case Study: SOMOSHOTELS Uluwatu
SOMOSHOTELS Uluwatu is an up-coming 250-room hotel set to redefine lifestyle hospitality with its vibrant blend of leisure, wellness, fitness, culinary offerings, art & creativity. It offers everything from gourmet restaurants to buzzing retail spaces and entertainment venues. The high-tech co-working space includes creative content studios, while the events hub will be host to seminars, panel talks, and art exhibitions.
Ownership at SOMOSHOTELS Uluwatu offers not only a value-appreciating unit but also passive income from operations, requiring no maintenance or active involvement.
In addition, they receive exclusive owner benefits including:
- 14-night stay with concierge, and private transfers.
- Unlimited access to co-working, gym, recovery facilities, and creative studios.
- Gym classes, discounts for spa treatments, and discounts at SOMOSHOTELS venues.
- Complimentary services and much more.
Owners will also receive discounts for Mirah Investment & Development affiliate hotels and restaurants including Cocana Resorts on Gili Trawangan, and Kuara Resort in Lombok. In total, these benefits are valued at USD $5,990 annually.
Case Study: FINNS Bali Resort
FINNS Bali Resort, located in Berawa, will offer an extensive array of lifestyle facilities and amenities. The resort is an extension and complete renovation of the FINNS Recreation Club.
Featuring 202 rooms, the resort boasts an unrivalled combination of wellness, sports, recreational, and family-friendly facilities. Guest packages include access to beach club venues, distinguishing it from any other accommodation offering in Bali.
FINNS Bali is an iconic brand in Bali’s hospitality landscape. With over 7,000 customers served daily, FINNS Bali’s 20 venues—including FINNS Beach Club and FINNS VIP Beach Club—welcomed 1 in 5 of Bali’s visitors in 2023, underscoring its status in the island’s hospitality landscape.
Owners at FINNS Bali Resort will own a value-appreciating unit in the hotel and earn passive income from the hotel’s operations with no work or maintenance required on their part. They benefit from the hotel’s business operations, including its brand name, popularity, and marketing tie-ins with the beach club to attract guests.
Additionally, owners at FINNS Bali Resort receive benefits valued at up to USD $19,600 per year.
Highlights include:
- 21 nights’ annual accommodation with VIP perks.
- Owner’s cards giving access to FINNS Recreational Club facilities.
- Concierge service and transfers to FINNS Beach Clubs and businesses.
- Complimentary VIP services across FINNS beach clubs.
- Free in-body scan, group fitness classes, daily padel court use, and much more!
Included in the benefits are tickets to FINNS’ iconic NYE party. Consistently sold-out months in advance, the NYE Party has had previous headliners including Fat Boy Slim, Diplo, Flume and other award-winning international artists.
Maximising Financial & Lifestyle ROI
Property investments encompass more than just financial gain—they offer owners the chance to broaden their lifestyle horizons, creating lasting value for themselves and their families.
Recent data comparing Q1 2023 to Q1 2024 shows that Bali’s villa market experienced oversupply, resulting in lower occupancy rates and reduced revenue. In contrast, hotels maintained higher occupancy rates and improved Revenue Per Available Room (RevPAR), underscoring the resilience and dependability of hotel investments in Bali’s evolving real estate landscape.
Overall, hotel investment properties tend to provide more consistent financial returns, demand less personal oversight, and deliver great lifestiyle benefits to owners and thier families.
About Mirah Investment & Development
As Bali’s leading property developer , Mirah Investment & Development are well established as the market leader with years of experience in bringing luxury developments to the most sought-after locations across the Indonesian archipelago. An extensive in-house team of locals and expatriates offer end-to-end services from architecture and design to professional property management as well as legal, taxation and immigration support.