When visiting Bali, travelers have endless choices for where to stay, but villas and hotels remain the top picks.
As an investor, it’s essential to understand what today’s guests really want—and which option gives you the best returns. Do they prefer the privacy and comfort of a villa, or the luxury and convenience of a hotel?
In this guide, we’ll explore what travelers are choosing in 2025 and which investment offers smarter opportunities in Bali’s real estate market.
Key Takeaways
- Traveler preferences in 2025 are shifting. More visitors now prefer private villas over hotels for space, privacy, and a home-like experience.
- Villas outperform hotels in many areas, reaching up to 92% occupancy and 18% net returns, while hotels average 75% occupancy with steady but slower growth.
- Villas attract long-stay guests such as digital nomads and families, while hotels remain favored for short-term luxury stays and convenience.
Bali Travel & Real Estate Market 2025: What the Numbers Show
According to the Bali Market Update – October 2025 report by Lighthouse, overall travel interest to Bali remains strong but shows a slight cooling trend compared to last year:
- Flight Search Index: 0.90× year-on-year (YoY)
- Hotel Search Index: 0.83× YoY
This indicates that while Bali continues to attract global travelers, fewer people are actively searching for hotel stays than before—a sign that traveler preferences are slowly shifting toward alternative accommodations like villas and private rentals.
Villas are quickly catching up to—and in many cases, surpassing—hotel performance. For example, in areas like Amed, 3-bedroom villas are achieving occupancy rates up to 92% and net returns above 18%, outperforming many hotels.
While hotel's average occupancy reached 75%, while the average daily rate (ADR) rose by 10% and RevPAR improved by 14% as reported by C9 Hotelworks 2025.
In terms of regional demand, Canggu and Ubud continue to stand out as Bali’s most searched areas for longer stays and lifestyle travel, while Kuta and the Southern Peninsula (including Nusa Dua and Jimbaran) are seeing softer hotel demand.
This aligns with the growing trend of remote workers, families, and digital nomads seeking space, privacy, and flexibility—features that villas naturally offer.
At the same time, traditional hotels remain attractive for short-stay guests and luxury travelers, offering convenience, brand reliability, and full-service amenities.
Read More: How to Buy Property in Bali from Abroad: Complete Guide
Villa vs Hotel Opportunity: What Renters Prefer in 2025
Traveler behavior in Bali is changing. While hotels have long been the go-to option for tourists, recent trends show that many visitors now seek more personal and flexible accommodation.
This shift is influencing how investors view villa and hotel opportunities in Bali’s 2025 real estate market.
Why Renters Are Choosing Villas
Modern travelers—especially digital nomads, long-stay visitors, and small families—are increasingly drawn to private villas. They offer:
- Privacy and space: No crowded pools or shared facilities; just a private sanctuary.
- Home-like comfort: Full kitchens, living rooms, and work-friendly setups that feel like “home in Bali.”
- Group value: Cost-efficient for families or groups who can share a larger space.
- Lifestyle appeal: Villas in areas like Canggu and Ubud fit the slow-living, wellness, and work-from-anywhere lifestyle that defines Bali today.
Many renters now look for longer stays rather than weekend getaways, making villas not just a leisure choice, but a lifestyle choice.
Read More: Who Buys Villas in Bali? Key Buyer Profiles Revealed
Why Hotels Still Attract Travelers
That said, hotels continue to dominate when it comes to short-term stays and service convenience. Guests who visit for a few days or prefer full-service experiences still choose hotels for:
- Daily cleaning, 24-hour service, and breakfast included.
- Consistent quality backed by established brands.
- Prime locations near beaches, nightlife, or business hubs like Kuta and Seminyak.
- Lower operational involvement for owners if managed by a professional operator.
Hotels offer stability and predictable returns, especially when connected to a management chain, but may face stronger competition as new developments enter the market.
We also offer villas with exceptional lifestyle benefits, strong capital appreciation potential, and personal-use flexibility; perfect for investors seeking both income and enjoyment.
Conclusion: Villa is The Best Investment in Bali Today
Both villas and hotels remain strong investment choices in Bali’s 2025 market. However, investing in a villa is still more profitable because the demand is more on this property nowadays.
By having a villa, you can attract long-stay guests and get a solid return. You can also hire professional management support to help you manage the villa easier, no matter where you are.
Want to start your own villa investment with your own personalized plan? We're here to help you anytime.
At Bali Villa Realty by Ilot Property, We handle every aspect of your villa investment—from planning and ROI calculation to professional maintenance—so you can enjoy a truly hands-off investment experience
Start maximizing your ROI with professional villa management. Contact us today for a free, no-obligation consultation.
FAQ
1. Can foreigners legally buy property in Bali?
Foreigners can’t own freehold land directly, but can invest through long-term leasehold agreements or a PT PMA company structure, which is fully legal in Indonesia.
2. What’s the typical lease period for villa investments?
Most villas are sold on 25–30-year leases, often extendable up to 70 years with proper renewal clauses.
3. Is Bali’s property market friendly for first-time investors?
Yes. Bali offers lower entry costs than many other resort destinations, strong tourism demand, and a mature rental infrastructure — ideal for newcomers when guided by a reliable local agency.
4. What are future trends to watch in 2025–2026?
Growth in eco-friendly design, digital-nomad-ready homes, and branded villa resorts that blend hotel services with villa privacy.
