A Due-Diligence Checklist for Buying a Leasehold Resort in Bali

Santara Villas — Sat, 27 Jun 2026 05:51:35 +0000

You found a Bali resort that actually operates and the cap rate
looks real. Good — that's half the work. The other half is the
legal and structural diligence. Here's the checklist I'd hand
any serious buyer of Santara Villas Resort (or any Ubud
leasehold).

Tenure and the extension clause — leasehold (assignment of
akta sewa), ~27 yrs remaining. Critical: the extension terms.
Most Bali leases re-price at market; a fixed-price extension in
the deed is rare and valuable. Verify wording with Indonesian
counsel. (Why this clause matters.)
Licences — SLF + NIB issued? KBLI: Pondok Wisata vs Hotel
Melati — matches operation? Gianyar zoning (Yellow Zone/RTRW)?
The Booking.com question — operating history proves the
business, but the account itself is not transferable property;
plan a credentials/playbook handover.
Ownership structure — foreigners can't hold freehold;
personal name vs your own PT; model PPh/BPHTB tax into real
entry cost.
Re-run the model on YOUR assumptions — every item above
changes your return: https://santarabali.com/finmodel

Pairs with the companion piece on why an operating resort
de-risks the buy: [вставь URL статьи 1 после публикации]. Index:
https://santarabali.com/press.

Disclosure: I'm the seller of Santara Villas Resort (Singakerta,
Ubud). General information, not legal advice — retain qualified
Indonesian counsel.

Underwriting a Bali Boutique Resort: A Conservative Cap-Rate Case Study (Ubud, 7 Villas)

Santara Villas — Thu, 25 Jun 2026 05:42:48 +0000

Most Bali yield numbers you read online are fantasy. Listings casually assume 80%+ occupancy, quote gross revenue as if it were profit, and ignore operating costs and taxes entirely. So instead of another pitch, here is a transparent, conservative worked example — with the full interactive model published so anyone can change the assumptions and see what breaks.

The asset is real: a seven-villa boutique resort in Desa Singakerta, Ubud (Gianyar), Bali. Four villas operate today (live on Booking.com with real guest history); three are built to shell and need interior finishing. It is offered as a leasehold assignment, owner-direct.

The numbers, stated conservatively

Phase 1 — 4 operating villas. Ask USD 780,000.
Phase 2 — 3 shell villas, ~USD 100,000 finishing, ~3 months to operating. Ask USD 390,000.
Whole complex — USD 1,180,000.

The anchor is contracted, not hoped-for: a NOI floor of USD 84,000/year on Phase 1 (USD 8,500/month gross minus USD 1,500/month OpEx). Against the USD 780,000 ask, that is an approximate 10.8% cap-rate floor — before any upside.

The interactive model defaults are deliberately cautious: 65% occupancy, USD 140 / USD 95 nightly rates, 33% OpEx. Push occupancy or ADR up and the cap rate climbs quickly — the point of publishing the calculator is that you do not have to take the seller's word for any of it.

The value-add layer

Phase 2 is the asymmetry: three villas already have structure, walls and roofs. ~USD 100,000 of finishing and ~3 months takes the resort from four keys to seven, against an estimated finished comparable value near USD 580,000 — a below-replacement-cost, value-add play rather than passive yield.

What to verify

Leasehold, not freehold — assignment of akta sewa, ~27 years remaining plus a documented 20-year fixed-price extension. Confirm enforceability with Indonesian counsel.
Booking.com history proves operations, but the account is not transferable real property — continuity is a credentials/playbook handover.
Confirm Pondok Wisata vs Hotel Melati (KBLI) and Gianyar zoning in due diligence.

Try the model

Set your own occupancy, rates and OpEx, recalculate cap rate and payback, export CSV: santarabali.com/finmodel

Background and contacts: santarabali.com