Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Buying a Hotel Boom One Room at a Time
Bali Hotels, Bali Villas and Bali News from
Bali Hotels
Bali Villas
Special Deals!
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Bali Update
Subscribe to our free weekly newsletter!
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

++62 361 286 283

++62 361 286 284

U.S.A. Fax:(toll free)

U.K. Fax:

Australian Fax:

++62 812 3819724

Bali Discovery

Bali News

Buying a Hotel Boom One Room at a Time

Condotel Investments Fueling Accommodation Price War and Posing Future Problems Both for Investors and Bali's Image

Bali News: Bali, Indonesia, Room over supply, C9, Horwath HTL, Bill Barnett, Condominiums, Hotels, Condotels, investments
Click Image to Enlarge


Bali’s booming condominium hotel (condotel) or residential hotel market is largely being swept up by Indonesian buyers from other major cities in Indonesia, such as Jakarta and Surabaya.

This trend was confirmed in a recent report prepared by Horwath HTL and C9 Hotelwork. Bill Barnet, managing director of C9 and a featured panelist at the recent Indonesia Hotel Investment Conference held in Bali on February 1, 2013, said, “We expect the trend to continue.”

The condotel movement provides developers to finance hotel projects by selling units to the public, that when not being used for vacations by their owners, can be rented out on a nightly basis to vacation visitors.

Barnett sad that growth in the condotel market has been further fueled by laws that prohibit foreign land ownership in Indonesia, but does allow Building Ownership Certificate (SKBG) that permit foreign leaseholds for condominiums for 60 years, extendable for an additional 60 years.

Prices for the Condotels start from US$3,000 per square meter, with the lower-price one-bedroom units among the most popular. Many developers are offering guaranteed annual yields of 8% over a limited number of years as a further induced to purchasers.

A major player in Bali’s over-supply of rooms, there are an estimated 300,000 condotel units now operating in Bali, with a further 100,000 units expected to come on line soon.

Barnett sounded cautionary remarks suggesting many condotels less-than-prime locations made then “not a stellar investment” – making them less appealing than better-located hotel against they now compete for guests.

The C9 and Horwath HTL report tells of stronger competition ahead with 12,000 new hotel rooms coming to Bali in anticipation of a surge in demand surrounding the Asia-Pacific Economic Cooperation (APEC) meeting coming to Bali in late 2013.

Of future concern in efforts to maintain Bali’s reputation as a world-class tourism destination is the cumbersome requirement stipulating condotels can only renovate their properties with the consensus of the myriad owners. On the other hand, hotels are able to upgrade their facility with the agreement of only a majority of shareholders.

Condotels may become rudderless ships,” Barnett warned. 

Examples of the long-term deleterious effect of over-development of the Condotel sector can be found in many locales worlwide where buyers get rid of a property once an initial investment is returned, creating a surfeit of used condotels competing against the established hotel market.

© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to


Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!

Our [Privacy Statement] explains how we handle the data you are providing.

Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!

or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Infrastructure First: Seaports and Airport
Transportation Minister Says Baliís Airports, Seaports, and Passenger Terminals Must be Enhanced to Support Growing Passenger Numbers
Another Renovation for Baliís Airport?
Minister of Transportation Wants Carrying Capacity of Baliís Airport Increased to 35 Million Passengers per Year
Move Underway to Trump Chinese Tourists?
DPR-RI Vice Chairman Seeks Repeal of Wide-Ranging Visa Free Status for Indonesian Visitors
Departure, No Return
Garuda Accused of Incorrect Procedures in Death of Passenger Flying from Jakarta to Melbourne
Infrastructure First!
New Hotel Projects Set for Nusa Penida in Dire Need of Water and Electricity Support
Bali Welcomes 3 Millionth Visitor
Bali by the Numbers: BPS Says 43.3% More Foreign Visitors to Bali in August 2016, Passing the Year-to-Date Mark of 3 Million
In Need of a Designated Driver
European Couple Die in Motorcycle Mishap After a Night of Partying on Pererenan Beach in Bali
Bad Smells from the Kitchens?
Drainage Ditch at Bali Airport Filled with Foul-Smelling Pollutants Suspected to Come for Airline Catering Building
Cherishing the Children
St. Regis Resort Bali and Laguna Resort & Spa Raises More than $20,000 for UNICEF at Lavish Beachside Moonlight Dinner
Itís a Bali Holiday
Official National Holidays and Shared Holidays in Indonesia for 2017
Me and My Guitar
West Bali Police Send Home 18 Punkers on a Personal Sojourn in Bali
Passport to a Clean Bureaucracy
Indonesian Immigration Service Joins the Anti-Corruption Campaign
All [News]!