JackStraw wrote
A homestay is not a resort. It's not typically someone's home either (but it can be that depending on the situation). Typically in Bali, a homestay is a cheap hotel room on someone's property. Depending on the size of their operation, they will build several basic rooms on their property and rent them out to tourists.
Some of them are quite nice but I wouldn't go as far as to call them "resort" quality
Homestays are very popular on the island due to their cheap cost and often times friendly, family service.
Many also doubling as "Hour Hotels" a friend told me...