Bali Villa ROI: Gross Yield vs Net Yield

A brochure's projected ROI is not owner cash flow. To compare Bali property investments, separate gross bookings, operating expenses, NOI, reserves and the buyer's total acquisition basis.

Key facts

• Gross yield compares annual room revenue with the property price — it is not owner profit
• Between guest payment and owner cash flow sit OTA/payment fees, management, staffing, utilities, repairs, insurance, reserves and taxes
• One current Bali operator publicly cites a 20–25% gross-revenue management-fee range, with utilities, repairs, insurance, tax and platform fees often sitting outside that fee — read the actual contract
• NOI = recurring property revenue minus recurring property operating expenses, before financing and owner income tax
• The comparison metric is normalized annual NOI ÷ total acquisition basis (price plus transaction, legal, repair and required completion costs)
• Official BPS data shows Bali star-rated hotel occupancy at 57.94% in April 2026 and 61.16% in May 2026 — a reminder that one flat annual occupancy assumption is not realistic

The first question to ask

A villa brochure says: “Projected ROI: 14%.” The first question should be: “Fourteen percent of what — and after which costs?”

Gross rental yield usually compares annual room revenue with the property price. It can be a useful top-line measure, but it is not owner profit.

What sits between bookings and cash flow

Between the guest's payment and the owner's cash flow sit distribution, management and operating expenses. Depending on the property and contract, these can include:

• OTA and payment-processing charges
• management or revenue-management fees
• housekeeping, laundry, guest support and on-site staff
• electricity, water, internet, pool and garden service
• repairs, supplies, insurance and accounting
• periodic replacement of linen, furniture, appliances and air-conditioning
• taxes and owner-specific costs, which must be modelled separately with professional advice

Management pricing is not standardized

One current Bali operator publicly describes a 20–25% gross-revenue market range, while also showing that utilities, repairs, insurance, tax and platform fees may sit outside the management percentage. That is a vendor's published model, not a universal market tariff; the buyer must read the actual contract.

Use a transparent income bridge

Every model should show the bridge from bookings to cash flow: gross room revenue, minus distribution and payment costs, minus property operating expenses, equals operating income before financing and owner-specific tax.

Then show replacement reserves and capital expenditure separately rather than hiding them.

For this guide, NOI means recurring property revenue less recurring property operating expenses, before financing and owner income tax. Definitions can differ between sellers, so the model must state exactly what is included.

The comparison metric is normalized annual NOI ÷ total acquisition basis. The acquisition basis should include the purchase price plus transaction, legal, immediate repair and required completion costs — not just the number shown in the listing.

Stress-test the assumptions

Do not accept one attractive scenario. Recalculate at least three: a downside case with lower occupancy and ADR, higher operating costs and a maintenance reserve; a base case using conservative assumptions supported by comparable and historical evidence; and an upside case achievable only if the specific operating plan succeeds.

Ask what happens if occupancy falls by ten percentage points, ADR softens, OTA share rises or maintenance is higher in year three.

Official BPS data illustrates why seasonality matters: Bali star-rated hotel occupancy was 57.94% in April 2026 and 61.16% in May 2026. Those hotel figures are not a benchmark for an individual villa; they simply show why a single annual occupancy assumption should not be treated as constant every month.

How this applies to Santara

For Santara, the asking price is a stated offer; future ROI remains a scenario. The public financial scenario calculator allows buyers to change assumptions. Historical operating materials are available to qualified buyers under NDA, but remain seller-stated until reconciled against OTA statements, bank receipts, expenses and tax records.

The Investor Evidence & Data Room deliberately separates public proof, seller-stated facts, editable assumptions and items requiring buyer verification. No yield is guaranteed.

Santara Villas Resort: a real example

The operating portion of Santara Villas Resort gives a verifiable starting point for the income bridge above (full financials sit under NDA):

Price subject to negotiation. Full economics in the Investment Memorandum under NDA.

FAQ

Sources

• BPS Bali: Tourism statistics for May 2026
• Balitecture: What Villa Management Costs in Bali — 2026
• Santara Investor Evidence & Data Room

Educational content only. This is not legal, tax or investment advice and does not promise any return. Verify financial data and assumptions independently.

Sources: Santara Villas Resort facts/v1.json · Foreign buyer — leasehold · page last updated September 2, 2026