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
- Strong demand trajectory: Tetebatu shows rapid visitor growth and clear policy support for desa wisata, but average ADR (~USD 19) and occupancy (~31.6%) remain low and highly seasonal.
- Very low entry price for a 5‑year operational contract reduces upfront capital needs but reflects leasehold/contract tenure: limited upside, potential hidden obligations and maintenance liabilities.
- Infrastructure and planning are improving (local road repairs pledged, islandwide upgrades) which supports medium‑term demand, but access, utilities and a thin resale market limit liquidity and increase operational risk.
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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