Balilombok
Hi,Here is the business opportunity.I own some of the most beautiful lands of South Lombok (absolute beach-front & cliff-front). Between Kuta & Gerupuk. Just beside the Mandalika tourism Resort, 1500m the Tanjung Aan bay where the golf course and five star hotels shall start in 2013.I will manage my lands as an ecofriendly zone for a couple of low-rise & low-density boutique hotels (first one luxurious, some more affordable in 2015), with a turtle nursery, a bird park, sport activities (surfing/diving/rock climbing).Since the opening of the International Airport 20 minutes north of Kuta, and direct flights from Singapore, Kuala lumpur, Moscow, Middle East (Perth announced for mid 2013), the tourism potential of this area is huge. Already, occupancy rates of 4 and 5 star hotels in all Lombok are at their 10 year peak and in a range of 70% to 100% throughout the year.The new web site of Elite Havens Lombok and thousands of other web pages provide background information about Mandalika and South Lombok.A few international hotel brands like Four Seasons, Conrad, One&Only have visited my lands and 3 of them have already agreed to run a small branded luxury villa-hotel on it (45 villas on 5 hectare of ocean-front land).As usual, those international brands commit to a 10 to 15 year management contracts and guarantee the occupancy but don't actually own the hotel.So we are looking for a future hotel owner.The benefit for this investor, is that I am very flexible on the way my land will be compensated (for instance, I don't mind to provide the necessary 5 hectares as a corporate asset. In such alternative, land is NOT paid and I become a minority partner in the company where the hotel investor owns land + hotel).Also, due to the fact it will be the first hotel of these luxury brands at Lombok, they also are flexible and ok to make it relatively small compared to Bali, Phuket, Maldives, etcBottom line : "only" 10 MUSD is needed (while such project needs elsewhere a capital of 30-50 MUSD).Also, some of the international brands don't mind if the hotel owner opts to sell part of the 45 ocean-front villas to individuals (through the usual mechanism of 6% return and 21 days of free occupation) as long as all villas remain in the 10 to 15 years management contract. Selling some of the villa units, usually with a significant markup, is a great way to lower the needed capital and to recoup the investment in around two years.More information on PM of course.CheersNote: I almost forgot. The typical commission for getting a serious person/company is 1% of capital invested (ie: 75 000 USD for a 7.5MUSD investor)Note2: Happy new year.
mugwump
I think you just blew your cover.
Balilombok
Small world, Mate !Merry Christmas and happy new year
mugwump
Guess I have been reading too many books on ornithology, but mate appeared as of the opposite sex?
Fred2
No good for me as I will be dead & buried before lombok takes off.
Balilombok
:friendly_wink:To Mugwump : Sorry, I though it was a guy blowing my cover... A lady ! I didn't know i was so popular with girls down there... Thanks anyway.To Fred2: Take the 25 minutes from Bali when you get time. Then drive/ride 20 minutes South to the seaside. You will be amazed how much has changed near Kuta since 2007 !! (for the better or for the worst...). FYI Lombok has received 1.1 millions visitors in 2012 (foreign + domestic) and projections are 2 millions for 2015.
Fred2
Sorry I was talking about making a profit
Balilombok
Of course, it is always debatable where is the best profitable place to invest, from crowded Phuket till seclusive Sumba...4 & 5 star hotels of the whole Lombok are truly profitable. Many of them are expanding.In addition investors in the hotel industry also take account the long term appreciation of the land and business as a bonus to their yearly profits.(For the time being land at Lombok is appreciating at 30% to 40% per year, in the best places).After 26 years in Indonesia (!) I too didn't believe this International Airport would one day happen to serve the gorgeous beaches of South Lombok...
gilbert de jong
like I said on the other thread...very funny
Fred2
I agree with you now, Good post from a real estate agent, took 26 years to get a airport, anther 26 years to get the tourist
hinakos
with one small difference......lombok is and will always be a muslim state. nothing against muslims, but the same freedoms will never be afforded in lombok as are in Bali. That 1 minute detail is something that most astute investors wanting to invest (serious) $$ in will have them looking elsewhere.
hinakos
something seriously wrong with the marketing budget of this place when they need to plug it on a free forum.
Balilombok
Come on senior guys...Yes we are in an free forum...On the other hand, this thread is posted in a category "Business" and is clearly displayed as an Individual business proposal (or so I thought :icon_e_confused: )Not really the perfect tribune to express the well-known cynical dislike of a part of the Bali expat community about the beautiful island of Lombok. Yes Lombok people are in majority muslims (as are the people of Javanese, Moroccan or Maldivian tourism destinations).Yes, compared to Bali or even Yogja, pristine South Lombok was completely left behind (that's even the magic of it). And so and so...Please feel free to start your own thread "Perfect Bali versus primitive Lombok" or "Let's bash on under-developped and muslim Lombok" if you feel there is need to explain why Lombok and Bali will never be the same :icon_smile:My guess is that hotel brands interested to commit long term management contracts to Lombok are seeking that differentiation, no ? Novotel, Sheraton, Aerowisata, Tugu, Jayakarta, Oberoi have been present at Lombok long before my post and are all renovating & expanding. Not mentioning the dozen of large new projects in the South.Back to my proposal, since we are in the "Business Category" I am thinking that some Expats from Bali might find it useful to read it and, if attracted to it, convey it to some investor friends for the benefit of ALL parties. That what Business thread is supposed to be about, no? After all, I witnessed that recently (since 2008), thousands of expats of Bali have visited South Lombok for tourism, investment, diving, surfing or simple curiousity. Some of them several times. So I reason that some expats from Bali might be good at explaining South Lombok development to partners and friends.I am looking for just one hotel investor. No, I am not a real estate agent and I am not selling land or anything (unless the new hotel investor insists in owning 100% of the villa estate).Also, by the same token that I am committed to develop this small resort in an eco-friendly fashion, I believe that, even if 45 villas is not truly a small budget, small is beautiful... I believe into tracking unnecessary wastes.:kiwi-fruit:So, to start with promotion, I am not comfortable with products or services who needs to sink 10% of their price into marketing so they can sell. This is a personal view but I had to respond to this point too. In other words, thanks to forum like this one, personal approach might one day replace printing of glossy brochures, and/or flying to carbon-hungry exhibitions, to locate ONE investor. At least that's what we may HOPE for...
Markit
I think the main problem that Lombok will always have is the same one that most of the other Indonesian destinations will suffer from: If you ask someone in America/England/Germany/Russia/Timbukfucking Tu where Indonesia is, most will have no clue at all. If you ask those same people where Bali is - they will still have no clue. But they will know Bali is Paradise/Palm Trees/Warm weather/Friendly natives/Culture. Put that all together and Lombok (and all other Indo islands) has a really steep hill to climb against Bali's name recognition. From my reading all the Muslim destinations that you have mentioned are also suffering from serious Tourist recession - but Bali sure aint!Personally I hope Lombok stays just like it is - gives me a place to go hide when Bali gets full :O) oh, and great food too.
Balilombok
[b]Yes, the challenge is to keep Lombok staying Lombok. The jury is still out on this..[/b]Personally I hope Lombok stays just like it is - gives me a place to go hide when Bali gets full :O) oh, and great food too.[/QUOTE]Thank you Markit. I couldn't have said it better... :icon_razz:Now this is interesting...My finding is that a huge percentage of foreigners who have visited the pristine South of Lombok, love it !!And due to the large tourism projects in preparation, immediately worry Lombok might loose its soul too fast...As is loosing very quickly its soul, another island we all love :concern: :mad: :disgust: :icon_e_sad:I also worry for lombok ...(as for the lands I sheltered, I am committed to leave a small, unobstructive print I can be proud of).See you there...
Balilombok
[b]Yes, the challenge is to keep Lombok staying Lombok. The jury is out on this...[/b]Personally I hope Lombok stays just like it is - gives me a place to go hide when Bali gets full :O) oh, and great food too.[/QUOTE]Also meaning, you would prefer to keep Lombok the best kept secret... Away from zillions of noisy tourists invading Indonesia, heheheNow, on the business side, YES, it would be foolish to claim that the 1.1 million tourist visiting Lombok last year would have materialized if Lombok wasn't 25 minutes and 30$ away from Big Sister Bali... As you are correctly putting it, how would they have discovered Lombok at the first place??(Although 1/3 of foreign tourists now return to Lombok without spending a full day at Bali anymore, hehehe).Still on the business side, we must evaluate the profitability of an hotel, NOT by the number of tourists (maybe 10X less than Bali) but from the law of Offer versus Demand.The number of hotel rooms at Lombok didn't catch up with the opening of the International airport last year. Number of room is 30X-50X less than Bali. Thus the very high rate of occupancy of the existing hotels (70% to 100% all year long), the highest in 10 years.And, I don't think our 45 villas will make a noticeable dent to this law of Offer vs Demand...
balibule
You say you are a foreigner and you own the land? How can you own the land?
Mark
Balilombok, I think you may be taking a difficult route to try and raise such a sum from a private investor (who will take on a huge risk that your project will be successful). To reduce risk (and increase your own returns substantially), I would team up with one of the major hospitality companies (you mentioned several already) to sell 'branded residences', ie selling villas directly off plan under the brand name of the hospitality company. The brand will give your project credibility and the deposits paid will allow you to start development. Once completed, the owners of these villas can then put them into the rental pool when they are not using them personally. Aman resorts in Phuket founded this concept with Amanpuri in the late '80s and has done extremely well (initial investors have seen in some cases more than a 15x return on their villa purchase price). Others have copied this model successfully (eg Ritz Carlton residences, Bulgari, W, etc etc). In any case, good luck.
Balilombok
You say you are a foreigner and you own the land? How can you own the land?[/QUOTE]Babibule, if you are interested to buy or long-term lease land in Indonesia, there is a whole category about it "Owing property in Bali".From the 300+ threads there, about 1/3 contain legal information answering your question.All the best
Balilombok
[b]Branded Villas is indeed a good investment solution,and requiring much less capital.[/b]I would team up with one of the major hospitality companies (you mentioned several already) to sell 'branded residences', ie selling villas directly off plan under the brand name of the hospitality company. The brand will give your project credibility and the deposits paid will allow you to start development.[/QUOTE]Thanks a lot. I can see you have analyzed this model of Bali/Phuket quite deeply. Maybe I shall hire you if I could afford it hehehe(You may of course PM me if you find someone interested)Other hotels we know using your model are The Heaven, some Harris, Aston, some Alila, Karma, Anantara, Banyan Tree...As you wrote: etc etcYes, I could possibly use this model myself.FYI, some of the international brands interested by a boutique hotel on part of my lands (including one you named) has offered me their Chinese Indonesian partner just to do that (developing 45 branded villas). However I don't feel too comfortable with those cold guys in the hundreds of MUSD league.I would prefer a foreign partner of my size. Maybe you would feel the same, Mark?I prefer a (foreign) outside investor to deepen itself into it because I see myself very busy looking over the harmony/rules of my small eco-resort (where several hotels will be in the long term, plus several green zone and nature related activities). He or she is taking a risk but can also do extremely well (as did most of the investor in the properties we mention).The only part I differ w you is that the investor should not start the villas construction from deposits alone. You are right many investor do but I prefer to select an investor who comes with sufficient cash (say 50% of total budget). So hotel can open and villas can be delivered even they are not all sold at the time.Thank you for your support. The perfect centerstage oceanfront lands are now fully paid/certificated and 3 foreign brands love the place, so I am reasonably confident...
