Thread: Opening a small Guest House In Bali

Hello everybody ... I wanted some good honest advice from people who live and work in Bali. I am currently working in Tokyo in what I would consider a high stress job (well for me is stress anyway). At the end of this contract I will be looking for a life style change and am looking at possibly opening a small guest house in Bali. I have seen a nice property which is a Hillside Hotel in the Lovina Area. It has 7 rooms 5 of which are in good enough condition to rent out the other two need work. The property also has a restaurant / bar whith great views.

Bearing in mind that I would probably buy the place outright (which would leave me very little of a nest egg) what sort of return can you expect to get in this area? Its not high end luxury but is comfortable, beautiful and has everything you would want in a weeks holiday resort.

I have experience in starting and running companies in various countries and also have about 6 years worth of hotel experience so know what I am doing on that side also.

is it realistic to expect a property like this to pay for my cost of living and allow me 6 - 8 weeks off in low season to visit friends and family in Australia / UK?

Am i living in a fools paradise with this plan?

That is the one bert ... although I have to say that is more the "type" of property I am interested in.

I have thought about way to get people there and I do have a few contacts that I have made that can direct a little traffic there. The rest will getting involved in the local tourist market and If I must signing a deal with a bali travel company who can gaurantee me a number of rooms each year.

I will also have a van that will collect people from whereever and bring them in as well as offering the use of a couple of free mopeds to people can go off and explore the local area - get to the shops etc.

I see it as being a youth hostel for the late 20 to 40 market who want a nice place to relax, that gives them the freedom to explore -- basically for people who feel like the five star resort just isnt really them and would prefer to be able to lay in a hammock and drink cold beer

Bert,

No business plan as yet ... just something I am considering. I wont be jumping in to anything without research .. but this seems like a good place to start.

I just wanted peoples opinion who have "been there and done that" ... rest assured I would have a business plan before I invested any of my money LOL

While I am looking at this as a life style change I am not foolish enough to know that it wont work unless I put in some hard work ... just think it would be easy to do that in a nice place, in relaxing surroundings