Bali Expat Forum - Bali Travel Forum

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)

Hi Irma,

>1. Is this a wise move under the current political climate?

When was the climate the best to do this?, People expecting a noisy election..

2. Is Lovina a good spot for a successful Hotel?

Not if you are a Balinese and sit on your butt and don't do anything, but ask yourself "Where are the tourists?". Yes, if you know something about marketing. There is a dutch guy, who regurlaly came to Lovina, but one day found his favourite hotel closed. He bought it, and has a good occupancy rate.

3. What's the beach like in Lovina (Anturan?)

Volcanic beach (black, uuhhh, grey beach), pretty wide

4. Anyone could put me in touch with somebody in the business?

I will mail you later privatly.

5. Is it better to buy or lease?

Both can be suitable. There are foreigners here owning hotels, fewer are leasing as far as I know. Its a personal decision, legal wise people say lease is better, but practical wise, both work. The reason hotels in this area are for lease are mainly lack of marketing skills, so "lets wait a few years and see"...Leasing has the advantage that you get the license to use as well....

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 Irma, you should come by here..

Regarding the remote management, I don't think thats a good idea.

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

Well, it would be possible if this manager is 100% trusthworthy, and you know him or her very very well.

Its not like putting an add in the paer and asking for a resume.

It may be an idea, to have a manager, and somebody else that checks up on the manager, also from here....

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

Hi Kris!

Thanks for your reply about my Bali plan.

I know that business is very slow there at present, but as you said, if you can afford it then it's the right time to invest there as I'm convinced that Bali will get to the top of tourism again!! (GO BALI!!)

This plan really is mainly for my Mum's & Brother's benefit, as for ourselves ...... we'll only be looking for a very small return out of it, just to cover costs.

If you know anybody in the industry in Bali, let me know please. Good luck with your job hunting too!!

Regards,
Irma

IF it is realy just to cover costs why not lease or buy a house that somebody can look after for your mum & brother while not there...instead of a business running it from a distance....the best place to burn your fingers with if doing so. Even if you would visit lovina or bali short term, talk to the local expats to tell you their stories of expats being burned that way.Cannot be too carefull...!
Does not mean that it cannot work if you are doing your homework well and have the right contacts and cultural approach !

(empty)

Hello everybody
I am an Italian chef, and I had the same idea/dream, to rent a small hotel/restaurant with my girlfriend, an Indonesian citizen.
Unfortunately our budget is limited, and after reading what you previously said we are even more doubtful, as the prices we found on the real estate are quite high.
We are not in the island now, can you give us some local contact?
thanks
Saulo

Dears,

I would advice everybody the same, if you rent/buy a bussiness in Indonesia, BE THERE TO RUN IT, OR DO NOT BUY/RENT IT !
It will go down to the drain !

Most of them, like Bert explained, are sitting on there asses, waiting for the toerists to come in, it does not work like that.
A manager running your hotel when you are not there !,
yea right, better give you money to me.

Regards,
Henk

Hi,

I have just read the different discussions on the forum (I haven't seen it before...) and even if this is time since the last discussion, I would be interested in having some more information in the job of "manager of an hotel" in Bali. Actually, we have been in Bali last year for the 1st time and we fell in love with this beautiful and magic island.
We are a couple (34 & 45 years old) of sales managers in France for french companies and we would like to go and stay in Bali to work in an hotel as managers. We would be interested in meeting some people who have bought hotels in Bali and who are looking for European managers to manage their establishment.


All advises and comments would also be good for us to begin......

Thank you....

Eva