Boutique Hotel In Umalas With Great Investment Potential

This boutique hotel in the sought-after area of Umalas offers a unique investment opportunity on a 1,000 m2 plot with a spacious 920 m2 building. Built in 2014 and held under FREEHOLD ownership (SHM), the hotel is designed to cater to guests seeking comfort and convenience with its 20 well-appointed rooms, restaurant, reception, and fully equipped kitchen. The hotel also includes staff quarters, a parking lot with space for seven cars, and reliable electricity provided by PLN with an additional generator for backup.

Currently, the hotel boasts a strong performance with a 90% occupancy rate, generating an impressive annual room rental income of $204,000 at a rate of $495 per month per room. With an expected full payback period of 6.3 years, this property presents a lucrative prospect for investors. While the hotel is already profitable, there is significant potential to increase revenue further by updating the rooms and common areas. A planned renovation could raise the room rate to $1,000 per month, significantly enhancing profitability.

Beyond the room rentals, there is additional untapped revenue potential from the restaurant and lounge bar located on the third floor. Although the rooftop space currently requires renovation, once completed, the restaurant is estimated to bring in $2,000 to $3,000 per month, while the lounge could generate an additional $3,000 to $5,000 per month. These figures have not yet been included in the hotel’s current income calculations, highlighting the opportunity for substantial growth.

With the existing IMB Rumah Sewa permit in place, this hotel is primed for an upgrade that can maximize its earning potential, making it a standout opportunity for investors looking to capitalize on the hospitality market in Umalas.

PRICE: IDR 28.300.000.000 for Freehold ownership or IDR 23.305.000.000 for 60 years Leasehold.