Turnkey Boutique Hostel Investment in Canggu

Turnkey Boutique Hostel Investment in Canggu

Bali, Bali

$1.0M

Price

1.5%

ROI

1

Bedrooms

48%

Occupancy

1 Bathrooms
Ownership: leasehold
Land: 1500
Build: 1000
Est. Revenue: $22k/yr
Avg Nightly Rate: $126

Investment Analysis

This fully operational boutique hostel is located in Canggu on 1,500 sqm of land with approximately 1,000 sqm of building size. Established in 2023 and operating under a PMA structure, the property offers extensive facilities including rooftop cafe, infinity pool, yoga space, and coworking area. Ideal for investors seeking a turnkey hospitality business in a prime area.

Villas of Bali
Bali / Canggu

Turnkey Boutique Hostel Investment in Canggu

Inventory
1 Beds
Bathrooms
1 Baths
Built Area
1000 m²
Land Plot
1500 m²
Tenure
Lease 18yr
Yield Curve Status

Grade C investment — short-term rental yields 1.3% net return annually.

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The Investment

Brixfox Score44
GradeC
Brixfox Intelligence
44CModerate
Score Breakdown
ROI & Yield48%
Capital Growth46%
Risk Profile47%
Market Demand44%

The Brixfox Score is our proprietary AI-powered rating that evaluates rental ROI, capital appreciation potential, risk factors, and local market dynamics to give you a single investment quality metric.

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Average annual ROI over 5 years, combining both rental income and property value growth.
Total
-5.8%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
-7.1%
-$371K in 5yr (-36%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
1.3%
$1,124/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
17 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
77.4 yr
Rental only

Income Breakdown

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Nightly Rate (ADR)
$126/night
50% ($63)Brixfox estimate($126/night)200% ($252)
Occupancy
48%
10%Brixfox estimate(48%)100%

Short-Term Rental

Yearly income
$13,487
Airbnb data$126/night · 48% occupancy
Rental income
$126/night · 48% occ.
$21,875
Running costs (20%)
Utilities, cleaning, maintenance
-$4,375
Income tax (10%)
Indonesian rental income tax
-$2,187
Property tax
Annual property tax
-$1,826
Net income
1.3% ROI
$13,487

Long-Term Rental

No long-term rental data available

Not enough comparable rentals in this area

True all-in investment

What the headline asking price actually costs once mandatory taxes, fees, renovation, and furnishing are added. Yields rebased onto this number — closer to what you'll really earn against what you'll really pay.

Asking price$1,043,210
BPHTB (freehold transfer tax)$52,160
Notary & registration$1,800
Legal / due diligence$10,432
Total acquisition costs$64,392
Renovation (~$130/m², from finish level)
Estimated from finish level — mid-range usually needs light refresh.
$130,000
($80,000$180,000)
Furnishing & STR launch
1bd × $3,500 base + appliances, electronics, outdoor, licence, photography, linens.
$18,100
All-in investment$1,255,702

Gross yield (asking)

2.1%

True gross yield (all-in)

1.7%

Bali estimates assume freehold (Hak Milik) acquisition via PT PMA. Leasehold (Hak Sewa) deals have lower transfer costs (~1% vs 5% BPHTB). Renovation rates calibrated to Bali contractor pricing. Working capital not included.

Growth & Exit Strategy

How your investment grows over time

Leasehold with 18 years remaining.

$1.2M$900K$600K$300K$0Yr 0Yr 5Yr 10Yr 15Purchase PriceIlliquid zoneUnsellableToday: $1.0MPeak Capital Value: Now
Leasehold value decline
Resale value of your property as the lease shortens. Drops steeply in the final years.
Rental income
Cumulative net rental earnings collected over time, growing with annual revenue increases.
Total return
Capital value + rental income. Your actual total position if you sold and kept all rent.
Illiquid zone
Under 15 years remaining. Hard to sell — banks won't lend, fewer buyers, and steep discounts required.
Unsellable
Under 5 years remaining. Effectively worthless on the open market. No financing, no buyers.
Year 5
Capital Value
$672K
-36%
13 years remaining
Rental Income
+$72K
Total Position
$743K
-29%
-6.6%/yr
Year 10
Capital Value
$312K
-70%
8 years remaining
Rental Income
+$155K
Total Position
$466K
-55%
-7.7%/yr
Year 15
Capital Value
$77K
-93%
3 years remaining
Rental Income
+$251K
Total Position
$328K
-69%
-7.4%/yr
Leasehold Alert
With 18 years remaining, the property is approaching the illiquid zone. Consider your exit strategy within the next 3 years.

Location

Bali

Canggu, Approximate area

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Villa Scorecard

Location
Strong
Premium area with high rental demand
Rental Yield
Weak
1.3% annual return
Occupancy
Average
48% average occupancy
Nightly Rate
Good
$126 per night
Visual Appeal
Strong
9/10 instagrammability
Size & Space
Strong
1500 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Good
18 years remaining on lease

Top Highlights

Prime location in Canggu — high tourist traffic
Stunning visuals with 9/10 instagrammability — commands premium nightly rates
Generous 1500 m² land — room for expansion or amenities

Watch Out

Yield of 1.3% is below the market average — model your cashflow carefully
Occupancy at 48% — factor in seasonal gaps

This villa is a strong investment. High rental demand and good returns make it suitable for both active and passive investors.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
0.7%
$652/mo
40% occ.
1.1%
$920/mo
48% occ.
1.3%
$1,124/mo
current
58% occ.
1.6%
$1,392/mo

Lease Timeline

18 years remaining
Caution Zone

Approaching the illiquid zone. Plan your exit within the next 3 years while the property is still easy to sell.

ℹ️

Financing note: Banks generally do not finance leasehold properties, regardless of the remaining duration. Buyers must purchase with cash or alternative financing.

25+ yr: Safe
15-25yr: Caution
<15yr: Illiquid

Data Sources & Methodology

ROI calculations use verified Brixfox Intelligence rental data from a 12-month trailing window. Opex: 20% owner-managed, 45% fully-managed. Includes 10% Indonesian rental tax (PPh) and annual property tax (PBB). Market factors in Bali may impact actual yields.