Bali’s hotel and real estate market demonstrated remarkable resilience in 2025, transitioning from a post-pandemic recovery phase into a period of sustained, mature performance.
This annual report produced by Horwath HTL in partnership with the Bali Hotels Association and C9 Hotelworks – delivers a comprehensive analysis of tourism arrivals, hotel performance by rate tier and location, new supply trends, and the evolving branded residences landscape.
Tourism arrivals hit a new record
International arrivals reached 6.95 million in 2025, a 10% increase year-on-year and a new all-time high for the second consecutive year — surpassing the previous 2019 peak. Australia remained the #1 source market (1.63m arrivals), followed by India and a resurgent China (up 20% YoY to 537k). Domestic arrivals moderated slightly to 9.6 million, still well above pre-pandemic levels.
Hotel performance: consolidation after two years of growth
Overall occupancy averaged 73.2%, easing 2.5% from 2024’s elevated levels. Average Daily Rate (ADR) grew 2.4% in IDR terms to IDR 2.4 million, though USD ADR declined 2% due to currency movements.
RevPAR held broadly flat in IDR terms at IDR 1.7 million. Peak occupancy of 85.9% was recorded in July, driven by Australian winter and European summer demand.
Top performing locations
- Nusa Dua led all submarkets on occupancy at 79.2%, benefiting from strong MICE and leisure demand.
- Jimbaran & Uluwatu commanded the highest ADR at IDR 4.8 million, reinforcing their premium positioning.
- Ubud delivered standout RevPAR growth of +5.6%, driven by an 11% ADR increase despite softer occupancy.
Luxury leads rate performance
Across all rate tiers, the luxury segment (Rate A, >USD 501) showed the strongest ADR growth at +8.0% in IDR terms, reaching IDR 13.1 million. The mid-market segment (Rate D, USD 81–140) delivered the most balanced outcome, with both occupancy and RevPAR in positive territory.
Budget and mid-economy tiers (Rates E & F) experienced the most softening, reflecting increased competitive pressure from expanding supply.
New supply: measured but top-heavy
The active hotel pipeline stands at 5,641 rooms across 45 hotels, with Canggu, Jimbaran/Uluwatu, and Ubud accounting for the majority of new development.
Rates A and B together represent over half of all pipeline rooms, underscoring continued investor appetite for premium positioning — and intensifying competition at the luxury end.
Branded Residences: a market in transition
Bali’s real estate market now counts over 70 hospitality-managed developments actively on sale. Canggu/Berawa dominates at ~40% of supply, but rising land constraints are shifting new launches northwest to Seseh, Pererenan, and Nyanyi.
A key regulatory shift – requiring all short-term rentals to demonstrate full legal compliance by March 31, 2026, is expected to accelerate demand for professionally managed branded residences, which currently represent just 10% of active supply.
Freehold offerings have nearly doubled from 12% to 23% of supply, broadening appeal to domestic Indonesian buyers.
Outlook: resilient fundamentals, rising complexity
Confidence in Bali’s long-term investment case remains strong. The destination’s global brand equity is exceptional, source market diversification is healthy, and demand fundamentals are intact.
However, the focus is shifting from growth to the quality and sustainability of that growth – with water availability, waste management, infrastructure capacity, and regulatory compliance all requiring careful attention. Disciplined site selection and realistic underwriting will be critical for new projects coming to market.
Download the Horwath HTL Bali report.
