Profile
Arif Bungalows is an authentic countryside bungalow retreat in Tetebatu available on a 5-year operational contract — a lower-capital entry point for investors who want to manage and grow an existing hospitality business in East Lombok without committing to a full freehold or long-term leasehold purchase.
The property sits on 10,000m² of land near Tetebatu village, surrounded by rice fields, tropical gardens, and rural walking tracks. It is a short drive from Tetebatu Monkey Forest and Jeruk Manis Waterfall — two of the area’s most visited natural attractions — and already welcomes independent travellers through bookings on major OTA platforms including Booking.com and Airbnb. Guest profile is independent, culture-seeking, and typically stays 2–4 nights: the highest-yield segment in Tetebatu’s market.
With 5 bedrooms, private bathrooms, a garden and terrace, bar, Wi-Fi, and parking, the property is fully equipped to operate from day one. The existing online presence and verified reviews provide immediate booking momentum — you inherit an asset with a track record, not a blank canvas. The 10,000m² land holding allows for modest expansion: additional bungalow units, a small pool, or a yoga deck that could reposition the property in the wellness travel segment.
A 5-year operational contract structure is well-suited to investors who want to test the Tetebatu market, build operational expertise, and establish a guest base before committing to a longer-term land acquisition. It is also a recognised structure under Indonesian hospitality law for foreign-operated businesses.
For context on ownership structures and what a contract arrangement legally entails for foreigners, see our guide to buying and operating property in Lombok as a foreigner.
Use our ROI calculator to model contract scenarios at different occupancy levels. Contact us for current contract terms, pricing, and an inspection date.
Key Findings
- Very low cash entry (listing price USD 3,067) for a 5-year operational contract creates high headline returns only if no further capital is required; realistic operation will need additional capex, working capital and possible revenue-sharing with landowner.
- Tetebatu is a fast-growing, niche eco‑tourism zone with improving local roads and rising visitor numbers, but ADR (~USD 19) and occupancy (≈32–42%) remain modest compared with coastal Lombok; yield depends on tight cost control or differentiation to reach top‑quartile occupancy.
- Leasehold / fixed‑term contract materially limits upside and liquidity: exit and capital appreciation are constrained by the 5‑year term and narrower resale market for lease contracts versus freehold.
Full Analysis
This property shows strong indicators for short-term rental returns driven by its proximity to tourist infrastructure and rising area occupancy trends. ROI forecasts suggest a 12–18% gross yield is achievable under optimal management. Infrastructure improvements planned for Q3 2025 are expected to increase land values by…
ROI Forecast
Based on comparable listings in this area, year-1 net cash flow after financing is estimated at $8,400–$12,200 USD, assuming 60% occupancy and a $220/night average rate…
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