Thread: Leasing/Buying Hotel in Bali

Hi,

As I'm new here, let me introduce myself. I'm Irma, Indonesian, married to an English guy and have lived in UK for 18 years! (Time flies.....)

As I have family there (Mum & Brother living in Jakarta) we're thinking of buying/leasing a hotel in Bali. Mum & Brother will have to move there to be in charge of it with a Manager looking after the day to day running of it. We have already 2 companies (& children) in UK and can only fly out there maybe 2 -3 times a year.

I would really appreciate any advice on this. Also answers to the following:
1. Is this a wise move under the current political climate?
2. Is Lovina a good spot for a successful Hotel?
3. What's the beach like in Lovina (Anturan?)
4. Anyone could put me in touch with somebody in the business?
5. Is it better to buy or lease?

Thanks so.....much!

(empty)

Thanks for your replies, Bert & DrIver.

I am very serious on this as it'll help Mum & Brother. But seriously, after the recent tragedies, would it be a financial suicidal to be stuck with a 5 yr lease of a hotel there?

What about the fact that we can only spend very limited time there ourselves? Although we could organise things from England, such as the marketing of it, etc. How difficult to find an experienced Hotel Manager there? (Unfortunately Mum/Brother has no experience)

Thanks again.

Irma,

I think what is called for is a visit to Lovina. Otherwise it is a silly idea.

Ken

Yes. Planning to visit the end of May/early June. But surely if I could find an experienced Manager to run the day to day running of the hotel, it would be fine? Or am I just kidding myself? Aaaarrgh!!

Thanks

I'm very grateful for your replies guys....., especially you Bert. The plan is my Mum & Brother will be checking up on the Manager (according to my instructions) as they'll be living at the premises. Or is this just too big of a project when you live thousands of miles away?

When we visit we'll only stay in Bali for 10 nights as we'll be visiting relatives in Surabaya too. Thinking of staying at Grand Bali Sani Suites (Sanur) and Aditya Beach Bungalows (Lovina). Anyone knows about what these places are really like?

By the way Bert, still waiting for your private e-mail about somebody who's in hotel business?

Thanks ....

Dear Sir/Madam,

Dear Irma,

I read your questions and the comments that followed. I have been working in the hospitality industry for around 14 years and was looking for a job in order to relocate to Bali myself. I must say that Bert gave good and sound advice.

Please be carefull with respect to the economics, marketing and such. I was in Thailand when the first Iraqi-Kuwait war broke out and it affected the industry a lot. Previous sound businesses closed, were sold, taken over, a huge mess.

If this is a long term commitment on your side, and you can afford it, on the other hand this also might be a good time to invest in an area where business is slow. Due time it will come back to its full potential.

I'm not informed as to the current situation in Bali, so these comments are hypothetical. However, do check the available resources. Chamber of Commerce, Bert, and others that are there on the ground.

I'm not able to assist you with respect to Hotel Management, I would love to but I don't have the local experience. Please be aware that it is important for small and medium properties to hire someone who has local experience and the necesary business contacts. However, these are also less trustworthy, so yes you need your brother there to check the finances, goods, amount of customers, etc.

If I'm there I don't mind giving you some more advise as to how to set things up with respect to operations, marketing, and controlling.

Good luck,

Kris Veen

veen@ehotelier.com