Bali is just about on everyone’s bucket list, especially if you live in Southeast Asia or Australia. It is the sanctuary to be in if you are looking for stunning beaches, magical temples or just one of the iconic rice fields and mountainous areas that make up the island’s landscape. In just 30 minutes, you can escape to one of the many other beautiful islands nearby or explore the idyllic beaches in Bali that makes it consistently rated as one of the Top Holiday Destinations in the World by TripAdvisor in 2017 and 2018.
In 2018, Bali welcomed over 16 million tourists – over 6 million international visitors and over 9 million domestic tourists. “With such record double digit growth rates in tourism over the past decade it is no surprise that…Occupancy rates of hotels in Bali has risen to 80% – 90% during peak periods, even as room rates in Bali increased by 30% to 40% within the same period” as reported by Association of Hotels of Bali in 2018.
Research from Horwath, a leading hotel consulting firm, suggests that the average occupancy rate of hotels in Bali come in at about 75% across the year. It is therefore possible that international-branded hotels and serviced residences can achieve significantly higher occupancy rates and/or daily rates on the strength of their branding and quality.
What makes hospitality brands so special?
Indonesia is dominated by home-grown hotels which contribute 70% of total hotels in the country. Yet, foreign tourists make up more than 1/3 of the country’s overall tourism market.
In particular, the top 3 countries which make up the foreign visitor numbers are China (25.7%), Australia (18.8%) and Japan (4.5%), and these numbers show no sign of slowing down with growth rates of 10% year-on-year. In fact, tourists from China, India, Malaysia and Singapore recorded double-digit increases in recent years.
With numbers like this, international hospitality chains have generally seen higher occupancy rates compared to that of locally managed hotels. In addition, the relative scarcity of internationally managed hotels and serviced residence compared to local hotels/serviced residences (since about 70% of hotels are made up of local brands) means that international hospitality chains can command a premium when it comes to pricing.
A globally-renowned lodging owner-operator such as The Ascott Limited brings with it international-quality service and a recognized quality in respect of the “hardware” of the property.
Canggu – The Next Seminyak
Canggu has been named the cooler, younger cousin of Seminyak and is fast seen as the new place to be. With its Instagram friendly walls, lifestyle restaurants and cafes, this area is now packed with amazing boutiques, luxury villas, retail shops, cafés, restaurants and beach clubs, and more such outlets are being added every month as the area continues to develop rapidly. Located just a few minutes north from Seminyak, you will find many of the top Bali F&B outlets in Canggu, such as the famed Finns Beach Club, the amazing sunsets at The Lawn and heartwarming breakfasts at Milk & Made.
This area is also fast evolving into Bali’s startup scene, with multiple coworking spaces attracting many of the digital nomads that live in Bali. Over the years, many international buyers have moved up the west coast of Canggu which in turn has seen prices rise by about 10% annually for the past four years. Recent developments like the COMO Uma Canggu, a hotel resort completed recently, have seen outstanding occupancy rates. Investors who invested in the area in the early days have seen their property prices rise significantly in the past few years.
Owning a Slice of Paradise, Citadines Berawa Beach Bali
Citadines Berawa Beach Bali, a development by Genesis Indojaya, is perfectly located in Canggu, just 3 minutes’ walk from Berawa Beach and within 5 minutes’ drive from hundreds of quality entertainment, shopping and food & beverage establishments.
Developed by the multiple-award winning developer, Genesis Indojaya and Stellar Partners, and professionally managed by The Ascott Limited under the Citadines brand, this apart’hotel boasts 226 rooms, including Studio Suites, One-Bedroom Apartments, Two-Bedroom Apartments and an iconic Presidential Villa.
One of the notable benefits of investing in this property is the strength of the lodging owner-operator. Confidence can be placed in the professional management of the property, with strong marketing fundamentals, operational efficiency, long term asset quality maintenance, and a target to maximize profits.
In addition, Citadines Berawa Beach Bali combines the best of Bali from a tourism as well as commercial perspective. Not only is it internationally managed and well-positioned to capture the rise in foreign tourist numbers, it is located in Canggu which has been earmarked as the up-and-coming “It-Place”.
This property is available for investment with assured rental returns guaranteed by the Genesis Indojaya – 5% net return per annum for the first 7 years. The developer is also offering a free-stay point system that allows investors up to 30 free nights at the property every year. When combined with the low downpayment of just 30%, it is no surprise why this investment property is attracting strong interest from the regional investor community.
Citadines Berawa Beach Bali, developed by Genesis Indojaya and Stellar Partners, is launching in Singapore on 6th & 7thApril 2019. RSVP Below for the Singapore launch event of this amazing Bali hospitality investment property.