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Contiki Resort in Bali to Close

Low Occupancy in a 'Bull Market' at 18-35 Year Old Only Property Precipitates a Change of Name and Management for 133-room Bali Resort.

(8/24/2008) PT Mountbatten Resorts Indonesia will soon assume management of the 133-room Contiki Resort Bali located in the Seminyak area of Bali's famed Kuta Beach.

The new managers of the property have declared their intention to renovate and rebrand the Resort, currently operated as an 18-35 year only 4-star resort. Quoted in Bisnis Indonesia, the Assistant General Manager of the Contiki Resort, Martinelly said that while the Contiki concept has worked in a number of countries, it is apparently not appropriate for Bali. The newspaper also reports that while hotels throughout Bali are running at 90% plus occupancy levels the Contiki Resort is only averaging 60% occupancy.

David Hosking, Director of PT Mountbatten Resorts Indonesia said the new resort would offer a new range of services and operated under the brand Breezes Resort and Spa. The target market for the new hotel would be family oriented and aimed on the mid to high market segments. Certain to go, as well, is the current age restriction of 18-35 years.

While saying the Resort would be renovated before the new launch, Hoskings refused to divulge the total amount of additional investment.

The new management contract for the property was recently signed between Mountbatten Resorts Indonesia and the hotel's owner, Made "Kadek" Wiranatha.

Plans are for the hotel to be re-launched under its new brand by November of 2008.