Last updated: 02:30 PM ET, Thu August 20 2015

Trump's Road to Bali

Hotel & Resort | James Ruggia | August 20, 2015

Trump's Road to Bali

PHOTO: Donald J. Trump, Hary Tanoesoedibjo & Liliana Tanoesoedibjo. (Courtesy of Trump Hotel Collection)

Indonesia’s volcanic Mount Raung, which has been disrupting flights to Bali’s International Airport with its periodic bursts of hot ashy gas, is about to meet its match as the Donald is planning to open a hotel on the southwestern shores of Bali. After a ceremonial signing last Friday (Aug. 14) in New York with Donald Trump and Hary Tanoesoedibjo, the group president and CEO of Indonesia’s MNC Group, the Trump Hotel Collection (THC) announced plans to expand its luxury hotel brand with its first Asian resort in Bali.

The hotel will overlook the Indian Ocean not far from the Tanah Lot Temple.

With four more hotels coming on line in 2016 in Washington D.C., Rio de Janeiro, Vancouver and Baku, the THC will bring their number of hotels operating under the brand to 14. MNC Group is a conglomerate involved in media, banking and real estate as well as hospitality.

“The Trump family’s personal involvement and global proven success is set out to elevate Bali’s expectations for luxury and excellence,” said Tanoesoedibjo. “Alongside our experience as a world-class developer, we are eager to develop the largest and most integrated lifestyle resort destination in Bali.”

Island of Real Estate Gods

Balinese real estate has been drawing a lot of attention in New York City recently. An April New York Times article by Kevin Brass noted the acceleration of the island’s real estate values. “Luxury home prices on Bali rose by 15 percent in 2014, making it the third-fastest growing upscale second-home market in the world, behind New York and Aspen, Colo., and tied with Istanbul, according to data tracked by the real estate firm Knight Frank.”

Citing the same New York Times article, Vilondo Villas, a vacation rental booking site with more than 600 Balinese villas on their website, are highlighting the fact that while Balinese property values are rising, Balinese villas remain a bargain for renters. While Knight Frank’s analysis revealed a 15 percent surge in Balinese luxury home sale prices last year, Vilondo’s analysis of more than 100 of the most frequently rented luxury homes in Bali, found that home rental prices only increased 3 percent from 2013 to 2014, and remained virtually the same the following year.

“For the price of a hotel room, we offer Bali visitors their choice of more than 600 luxury villas in any size and budget, along with complimentary transportation to and from the airport,” said Mads Rode, Vilondo co-founder. Vilondo’s vacation rentals are concentrated around the main tourist hubs of Kuta, Canggu, Sanur, Jimbaran, Ubud and Seminyak. Villa sizes range from small and budget-friendly one-to-three bedroom villas ideal for honeymooners, families and couples traveling together, to grandiose 16- and 22-bedroom estates suitable for weddings, family reunions and other special events. 

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