New Lombok Hotel and Branded Residences 2025 Report Released

Over the past two decades, Lombok’s real estate landscape has undergone significant change, driven by the growth of its tourism and hospitality sectors. In the newly released Lombok Hotel and Brand Residences Report 2025 from C9 Hotelworks and Horwath HTL , we dive into the revelation of Lombok’s hospitality-managed real estate market.  The island’s real estate journey began when foreign developers began acquiring greenfield land, subdividing it into serviced land plots and marketing them as ready-to-build plots within master-planned estates. These plots primarily appealed to speculative land investors and individual buyers seeking to build private holiday villas at lower costs compared to more mature destinations like South Bali. This initial wave of development laid the foundation for Lombok’s emerging real estate market.

The opening of Lombok International Airport in 2011 in Central Lombok Regency, replacing the former Selaparang Airport in Mataram, was a key catalyst for tourism growth, enhancing accessibility to the island, which led to the emergence of standalone short-term rental villas and hospitality-managed residences such as Selong Selo and BASK Gili Meno. These hospitality-managed residences, typically characterized by unobstructed panoramic ocean views or prime beachfront locations, concentrated in key areas, including the Gili Islands, Senggigi, and Selong Belanak.

In recent years, growing interest from international investors—particularly from Singapore, Hong Kong, Europe, and Australia—has driven a surge in land values, with increases ranging from 50% to 200% in parts of South Lombok. As land prices escalated, the market began shifting from standalone serviced land plots to integrated hospitality-led residential communities and off-plan villa developments.

To date, Lombok’s hospitality-managed real estate market comprises 1,326 units across 18 developments, along with 798 independent holiday rental villas. These two segments now define Lombok’s hospitality-managed real estate sector.

Market Composition: Serviced Land Plots Continue to Dominate Supply 

In Lombok, hospitality-managed residences are classified into three primary categories: serviced land plots, condominium units, and villas.

Serviced land plots remain the dominant component of Lombok’s hospitality-managed real estate market. There are currently 704 serviced plots spread across six developments, making up 53% of the total supply. Key large-scale projects in South Lombok include Samara Lombok and Tampah Hills.

Condominium units account for 28% of the market, all located in North Lombok—an area that saw the earliest concentration of hospitality-led real estate activity before 2015.

Hospitality-managed villa developments represent the remaining 19%, comprising 246 villas across 9 projects. These developments typically cater to lifestyle buyers and investors seeking secondary residences or income-generating assets in a managed rental environment.

Supply by Location: A Shift Towards South Lombok

South Lombok has emerged as the primary hub for hospitality-managed residential development, accounting for 61% of the total supply, with Kuta and Selong Belanak being the key development zones. This concentration is closely linked to major infrastructure and tourism-related investments, including the launch of Lombok International Airport, the creation of the Mandalika Special Economic Zone, and the steady rollout of supporting amenities. These include retail outlets, dining venues, healthcare services, and the Mandalika Intercultural School, which opened in Kuta in 2022. Senggigi follows accounting for 25% of the supply, and the Gili Islands at 8%.

Vacation Rental Performance: Operators Prioritize Occupancy Amid Rapid Supply Growth

In 2024, private villas rented as vacation homes on mainland Lombok recorded an average nightly rental rate of USD 189 and a year-round occupancy rate of 59%. While occupancy improved by 4 percentage points compared to 2023 (from 55%), the average nightly rental rate declined by 21% over the same period from USD 238. This decline can be attributed to the rapid growth in vacation rental supply across mainland Lombok, with the number of available villas listed on Airbnb and Vrbo increasing by 89% over the same period.

In contrast, vacation rental performance on the Gili Islands improved in 2024 despite a 28% increase in active vacation rental listings compared to 2023, with average nightly rates rising 3% to USD 178 and year-round occupancy increasing by 0.7 percentage points to 54%, indicating steady demand resilience amid expanding supply.

Guest behavior also differs between the two markets. On mainland Lombok, the average length of stay is 3.5 nights, compared to 2.8 nights in the Gili Islands, reflecting varying traveler preferences and experiences.

By configuration, one- and two-bedroom villas represent most of Lombok’s vacation rental supply, accounting for 47% and 28%, respectively.

Looking Forward

In contrast to Bali, Lombok has yet to see the entry of branded residences affiliated with international hotel operators. While Meliá Collections Lombok has been announced, there are currently no completed projects on the island. This gap presents a first-mover opportunity for developers to introduce professionally managed residences affiliated with a globally recognized hospitality brand, offering investors benefits such as rate premiums and brand-led quality assurance.

Looking ahead, the market is witnessing a shift toward off-plan, fixed-design villas that offer turnkey ownership solutions. This trend is being driven by buyers who value convenience and speed of delivery. In response, small-scale villa projects, typically priced between USD 150,000 and USD 350,000, have gained traction, especially in the Kuta and Selong Belanak areas.

Overall, the combination of positive investor sentiment, improving infrastructure, and evolving buyer preferences is driving momentum in Lombok’s real estate sector. As the market matures, opportunities remain for innovative, professionally managed residential products that align with global standards.

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