Hotel groups Accor and Radisson, which together operate over 6,000 properties across 50 brands, have announced major expansion plans in Indonesia, with a strong focus on Bali. This dynamic isn’t limited to the hospitality sector alone — it also sends a clear signal to real estate investors in a country where tourism and property are increasingly intertwined.
A Market Driven by a Growing Middle Class and Tourism Surge
Accor is aiming to grow its Indonesian portfolio by 4%, capitalizing on the rapid rise of the middle class and increasing consumer spending. Radisson is not far behind, with plans to open 15 new hotels by 2027, targeting a total of 40 properties in Indonesia by 2030.
This ambitious expansion comes amid a broader economic context where tourism is the fastest-growing sector. Record-breaking tourist arrivals, high occupancy rates, and steadily rising average room rates are driving momentum. Against this backdrop, an important question arises: to what extent will this hotel expansion impact real estate values in high-demand tourist destinations like Bali?
Bali: A Fertile Ground for Hybrid Investment Models
With more than 5 million international visitors in 2024, Bali remains the centerpiece of Indonesia’s tourism industry. This popularity directly affects the local real estate market — the demand for short-term accommodation fuels the growth of residential projects designed for rental or hotel-style use.
In top-performing areas like Canggu, Uluwatu, and Seminyak, net rental yields typically range from 8% to 12%. In some cases, resale price increases exceed 10% annually, especially for well-located villas or professionally managed boutique hotels. The convergence of private real estate and hospitality raises a key question: is the traditional model of property investment evolving toward more profitable, mixed-use formats?
A Shift Toward Professionalized Real Estate Projects
As demand for quality accommodation grows, many property developers in Bali are incorporating hospitality-level services into their offerings — concierge, rental management, maintenance, and dining options. These “semi-hotel” models appeal not only to short-term guests but also to investors seeking stable returns.
The entry of global groups like Accor and Radisson reinforces this shift. Their presence in specific locations can act as a catalyst, pushing up land values and accelerating the professionalization of the real estate market. This leads to another key consideration: how should the investment potential of a property near a future international hotel project be assessed?
A Clearer Legal Framework for Foreign Investors
Indonesia is gradually easing regulations for foreign property investment, particularly through PMA structures (foreign-owned companies), which allow for legal acquisition, management, and resale of real estate assets. Coupled with a relatively stable tax environment and competitive operating costs, Bali has become a sought-after destination for medium- to long-term rental investment strategies.
In this context, the expansion of major hotel groups acts as a strong indicator of market confidence. It suggests that Bali’s property market should no longer be viewed solely as a lifestyle or second-home destination, but as a legitimate and strategic investment class in its own right.
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