How can a foreign investor invest in a hotel in Bali?
Foreign investors can invest in a hotel in Bali through a PT PMA structure with HGB (Right-to-Build) land title. Cube Bali’s CROSS Bali Uluwatu project is already secured under this structure, allowing investors to participate without setting up their own legal entity from scratch.
What legal structure applies to foreign hotel investment in Indonesia?
Foreign hotel investment in Indonesia typically operates through a PT PMA holding company, with land and building rights held under HGB, or Right to Build, titles. CROSS Bali Uluwatu is structured this way, with a valid building permit (PBG) and land fully certified and free of encumbrances.
What is the expected ROI for hotel investment in Bali?
CROSS Bali Uluwatu targets an IRR of up to 18% in USD, within an estimated investment horizon of 3 years, covering 2 years of construction and 1 year of operations.
What currency is used for this investment?
The investment is denominated in Indonesian Rupiah (IDR) in accordance with Indonesian regulations. All investment amounts, including the estimated CAPEX, are presented in IDR, with a target IRR of approximately 15–18%.
What is the exit strategy for investors?
Two scenarios apply. The accelerated scenario involves disposal to a strategic investor within 3 years. The alternative scenario involves stabilizing the asset as an income-generating property with a 5-10 year hold, followed by a strategic exit.
Who manages the hotel?
CROSS Bali Uluwatu is managed by Cross Hotels & Resorts, supported by SONO Hospitality expertise, with Preferred Partner status through Flight Centre Travel Group (FCTG), a travel company operating in more than 30 countries.
Where is CROSS Bali Uluwatu located?
The project is located 200 meters from Suluban Beach in Uluwatu, Bali, with additional landmarks including The Istana Uluwatu (200m), Single Fin (300m), Padang-padang Beach (500m), and Uluwatu Temple (1.4km).
