Hospitality Insight

Lombok Hotel & Branded Residences 2025

April 2025

Lombok, long overshadowed by Bali, remains rich in natural and cultural appeal but underperforms in tourism development due to connectivity issues and hesitant investment. Despite solid domestic tourism growth, international arrivals are lagging, reaching only 430,000 in 2024, down from their 2019 peak. Domestic visitors, however, surged to over 3.2 million.


Malaysia, Singapore, and European countries dominate international air arrivals, with Australia’s presence diminished post-Covid. A lack of consistent international flight connections continues to hamper foreign tourism, though new domestic routes and seasonal peaks in July–October support occupancy rates.

Top-tier hotels in Lombok saw positive performance in 2024, with occupancy at 56% and ADR at IDR 1.9 million, boosted by new luxury openings. Luxury hotel RevPAR grew 26% despite a slight dip in ADR, while the Upper Upscale segment showed steady growth across all metrics.

New resort developments remain sparse, with few large-scale hotel brands committing. Forecasts suggest moderate improvements in 2025, contingent on better connectivity and diversified hospitality offerings.

Lombok’s hospitality-managed real estate market has evolved from speculative land plots to integrated resort communities. The opening of Lombok International Airport in 2011 triggered growth in managed residences like Selong Selo and BASK Gili Meno. Currently, the market comprises 1,326 units in 18 developments and nearly 800 independent villas.

Serviced land plots dominate the real estate market (53% of supply), followed by condominiums (28%) and hospitality-managed villas (19%). South Lombok leads development, driven by infrastructure investments in areas like Kuta and Selong Belanak.

Vacation rentals performed mixed in 2024. Mainland Lombok saw 59% occupancy but a 21% drop in nightly rates due to an 89% supply increase. In contrast, the Gili Islands maintained stable rates and occupancy amid rising listings.

While branded residences are still absent, growing investor interest and maturing buyer preferences suggest opportunities for developers. Turnkey villa projects are gaining traction, particularly those priced between USD 150,000–350,000.

Overall, Lombok is poised for growth but needs consistent flight connectivity and a strategic push in hospitality branding and real estate integration to realize its potential as a premier destination.