SEPTEMBER 4, 2026
MARKET BRIEF
Bali Hotel | H1 2026
Bali Hotel | H1 2026
Bali’s accommodation market recorded notable supply growth in H1 2026, with eight new properties adding approximately 340 rooms, primarily concentrated in Ubud and Uluwatu. Despite this growth, hotel performance softened as occupancy declined amid seasonal demand patterns and heightened geopolitical tensions, which may affected travel preferences. ADR, however, remained resilient, although the gain was insufficient to offset weaker occupancy, resulting in lower RevPAR. Looking ahead, the continued development of five-star properties is expected to further strengthen Bali’s positioning in the luxury hospitality segment, while a recovery in travel demand could support hotel performance in H2 2026.
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Bali welcomed new hotel inventory in H1 2026, led by the five-star segment
During the first six months of 2026, eight new hotels opened in Bali adding approximately 340 rooms to the island’s hotel accommodation supply, with the majority of new supply concentrated in Ubud and Uluwatu. Notably, several newly opened properties adopted private, low-density, and experience-oriented concepts, with limited room inventories. Meanwhile, established operators such as Accor continued to expand their presence in Bali, with Novotel Bali Ubud Resort introducing a larger-scale, full-service resort. On the other hand, Six Senses Uluwatu was temporarily closed for renovation from February 2026, reducing operational supply in the luxury segment during H1. With five-star properties accounting for approximately 39% of Bali’s total accommodation supply in H1 2026, the continued addition of upscale and luxury developments was expected to further strengthen Bali’s positioning in the luxury segment. |
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Seasonality and geopolitical uncertainty shaped Bali's hotel occupancy in the first half of 2026
The decline in Bali’s average hotel occupancy was primarily influenced by seasonal demand patterns, with occupancy softening following the peak Christmas and New Year period before recovering from April onward. This trend was also reflected in international tourist arrivals, which declined from January to March before rebounding in April and May. Travel demand amid heightened geopolitical tensions may have also weighed on Bali’s arrivals, although the impact varied throughout the January–June period. |
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ADR increased while weaker occupancy weighed on RevPar
In the first half of 2026, the Average Daily Rate (ADR) of hotels in Bali stood at around IDR 2,610,900. The increase may have reflected hotels’ efforts to maintain room rates amid softer occupancy, supported by Bali’s growing luxury supply and potential shifts toward higher-value demand. Consequently, RevPAR declined by 23% year-on-year to approximately IDR 1,402,400 in H1 2026, as the increase in ADR was insufficient to offset the decline in occupancy. |
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Benoa Port strengthened its role as Bali's cruise gateaway
Benoa Port recorded 68,035 international tourist arrivals in the first quarter of 2026; a 5.58% increase compared to 64,436 arrivals during the same period in 2025. A total of 76 cruise ships were scheduled to call at the port this year, with 35 vessels from various countries having already arrived in the first three months. This trend aligned with Central Statistic Bureau data, which showed strong growth in international arrivals at the start of the year. Arrivals peaked during the global winter cruise season (January–March), when mega‑cruise ships repositioned to Southeast Asia. The strong performance in the first quarter underscored a consistent growth trend and reinforced Benoa Port’s role as one of Bali’s key gateways for international visitors arriving by sea. |
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Kura Kura Bali SEZ considered as Indonesia's international financial center
Kura Kura Bali SEZ was being considered as the location for the development of Indonesia’s International Financial Center, supported by an integrated masterplan and the development of the Knowledge District, which is designed to foster innovation, education, and human capital development as drivers of future economic growth. The Financial Center is envisioned to attract investors, financial institutions, and family offices from around the world. |
APPENDIX: ECONOMIC INDICATORS
