Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
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 balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
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

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
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

(2/2/2013)

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 http://www.balidiscovery.com.

       

 
Plaga Wine
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
... And the Law Won
Amokrane Sabet (49) French Expat Wanted for Questioning Shot Dead in Altercation with Bali Police
(5/2/2016)
End of an Era in Bali-Australia Tourism
Garuda Orient Holiday Australia Closing
(5/2/2016)
Plays Latin, Our Satin Doll
Jazz Legend Nits Aartsen to Perform at Casa Luna Restaurant in Ubud, Bali Sunday, May 22, 2016
(5/2/2016)
Slapping a Roaming Wrist
Noa Pardue Gets Off with Rp. 250,000 Fine for Stealing a Pair of Underwear from an Ubud Shop
(5/2/2016)
Taking Out the Garbage
PT NOEI Fired From its Management Role at TPA Suwung Rubbish Dump
(5/2/2016)
A Northern Approach to Bali
Governor to Issue Recommendation for Dwijendra International Airport in North Bali
(5/2/2016)
Solemen Fun Day at Waterbom Park
Solemen Dispenses Smiles and Fun Memories to Some of Baliís Most Downtrodden
(5/2/2016)
Saving the World, One Island at a Time
Lembongan Island Says No to Plastic on Earth Day 2016
(5/2/2016)
An Epitaph Written at Stones
Australian Teen Dies in Bali While Illegally Operating a Motorcycle
(5/2/2016)
Carmen Miranda: Hey, Thatís my Hat!
Balinese Village Build 2.5-Meter High Tower of Fruit as Offering to Monkeys at Alas Kedaton
(5/2/2016)
Be an Idol!
Open Mike Amateur Night for Aspiring Singers with the Bali Community Choir at The Onion, Sanur, Bali on Tuesday, May 17, 2016
(5/2/2016)
Sink and Win!
Emirates Airlines Sponsors Hole in One Extravaganza at Bali National Golf Resort
(5/2/2016)
All [News]!