Is Bintan De-Risked for Hotel Investment(2) ?

Andrew  —  November 19, 2011 — Leave a comment

Bintan Risk Hotel Investment

This is a continuation of the previous post about de-risking of Bintan.

In it’s early days Bintan Resorts was simply too spread out. There was no resort town core to hold everything together. The greenfield risk for hotel investors was simply too high.  Lagoi Bay Bintan has changed that.


Shift in Bintan Investor Sentiment

Given that PT Bukit Uluwatu Villa Tbk chose to invest in Lagoi Bay Bintan represents a significant shift in sentiment. Why? They’re a barometer of how local investors view Bintan. If local investors don’t participate you can forget about foreign investors. Anecdotal evidence already suggests lesser known local investors have already inked deals in Lagoi Bay – and foreign investors as well!  The other notable hotel investment being the Swiss Belhotel Lagoi Bay Bintan. This is a 196 key hotel backed by Indonesian investors and likely to open for business by 2014/15.


Bintan’s Plus Points

I personally believe foreign investment sentiment has finally shifted in favor of Bintan. And why shouldn’t it ? After all there’re many good things going for Bintan:

  • It’s backed by Gallant Venture Ltd, a publicly listed company in Singapore with the Salim Group of Indonesia and Sembcorp of Singapore as key shareholders.
  • Existing 1,300 rooms in Bintan Resorts that are performing relatively well. Just ask the concierge at the Banyan Tree about their average occupancy – you’d be surprised.
  • Three existing identifiable resort brands – Banyan Tree, Club Med, Ria Bintan Golf and the latest additions: Alila Villas Bintan, The Sanchaya and the Swiss Bel Hotel Bintan.
  • Only an hours ferry ride from Singapore
  • Some really nice beaches (much better than anything on the East and West coast of Peninsula Malaysia).
  • Security and emergency services in a gated resort community
  • Utility supply that’s of international standard
  • Environmental protection measures in place
  • Privatized resort management


Ideal Up and Coming Resort Investment Destination

If you’re a foreign investor or a small investor I would think Bintan Resorts would be an ideal resort investment destination. Name me one better upcoming location that’s scalable over the long term?

  • Firstly, you’re insulated and can have the choice not to deal directly with the local authorities if you’re unfamiliar with the process.
  • Secondly, because its backed by reputable business groups you’ve got some transparency in your dealings.
  • Thirdly, Lagoi Bay Bintan is within a gated resort community – how more secure can you get?
  • Its strategically located at the gateway to a major business city.
  • Lastly, announcement of the MOU between Garuda and Gallant Venture for a new airport to be built in Bintan which can potentially change the tourism dynamics in the region.


Regional Players Taking Note

In time you can be sure that resort developers & operators like Amanresorts or Anantara Hotels & Resorts will start taking notice of Bintan. These are important regional players that will not be ignoring Bintan once it gathers momentum.


See also

Development Progress: Lagoi Bay Bintan, The Sanchaya, Alila Bintan




Photo by: Moonsheep

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