Bali Beach Hotel in Sanur – the first five-star hotel in Bali, built in 1966 with Japanese reparations funds at the initiative of President Sukarno. History, restoration planned for 2025.
The first five-star hotel in Bali couldn’t afford to be modest — and it wasn’t: a ten-story tower on the beach in Sanur, built with money from Japanese war reparations at the personal initiative of Indonesia’s first president. Bali Beach Hotel opened in 1966 as a symbol of a national project, which Sukarno wanted tourism throughout the country to be — and remains a noticeable landmark on Sanur’s coastline to this day, although the president himself never crossed its threshold.
A Presidential Project, Not a Businessman’s
In 1962, President Sukarno initiated construction of the hotel in Sanur — not as a private commercial enterprise, but as a national project designed to demonstrate Indonesian hospitality at an international level to the world. For Sukarno, tourism was not just an industry, but, according to his own words and historians’ interpretations, a cultural bridge between young independent Indonesia and the rest of the world—a way to assert the country in a language understood by Western guests, without sacrificing national pride.
Funding for the construction, which began in 1963, came from an unusual source — funds from Japanese war reparations paid to Indonesia following World War II. The use of these funds specifically for tourism infrastructure, rather than industry or infrastructure in a narrow sense, was itself a political statement: Sukarno bet that openness and representation would pay off just as significantly as factories and roads.
The First Ten-Story Tower on the Island
The hotel became the first five-star hotel in Bali built to international standards with international management, and also the first (and at the time of opening, the only) ten-story building on the entire island – a vertical landmark deliberately contrasting with the traditionally low-rise Balinese landscape. Initially, the hotel opened as InterContinental Bali Beach Hotel, which emphasized its international rather than purely local status from the very beginning.
It was precisely this scale that later became the subject of local urban planning disputes: the high-rise silhouette of the hotel against the backdrop of traditionally low-rise Balinese development ultimately influenced the subsequent introduction on the island of strict height restrictions – no new building in Bali should exceed the height of a coconut palm, and Bali Beach Hotel remains a rare exception built before this rule was introduced.
Opening without its initiator
The official opening took place on November 1, 1966, and the ceremony was led by the Sultan of Yogyakarta, Hamengkubuwono IX – but Sukarno himself, the person whose personal initiative and political will launched the project, was not present at the celebration. By 1966, the political situation in Indonesia had changed dramatically: the country was experiencing the aftermath of the 1965 coup attempt and the subsequent bloody purge, as a result of which power effectively passed to General Suharto, and Sukarno himself was removed from real control of the country. He never visited the hotel that he himself conceived and began to build – a rare fact for a history that formally looks like a story about a successful national project.
In 1979, the management of the hotel passed to the state-owned company PT Hotel Indonesia International, and the building itself was renamed from InterContinental Bali Beach Hotel to simply Bali Beach Hotel – the sign became less international, but the historical status of “first” remained with the hotel.
Return in 2025
After decades of operation and several waves of partial updates, the hotel underwent a major multi-million dollar restoration and reopened in 2025 under a new name – Bali Beach Sanur: The Heritage Collection – emphasizing its status as a monument to Indonesian tourism history, rather than just a beach resort. Today, the hotel offers an outdoor pool, fitness center, bicycle rental, concierge service, and the Arunika restaurant, while Sanur Beach and the marina are five and eight minutes away on foot respectively.
What Guests Say
- “First of all, the location of the hotel is excellent. After all, it was the first five-star hotel built by Sukarno in Bali, so it occupies the best and largest plot of land in Sanur. […] The Beach Hotel description states that it was renovated in 2024, but the bathroom clearly hasn’t been updated.”
- “Wonderful hotel. One of the best in Bali. Everything is top-notch. The atmosphere is so friendly that it’s passed on to the guests – everyone smiles at each other. Breakfasts are very diverse in beautiful locations.”
- “The hotel is located right on the seashore, and we were lucky enough to have a sunrise view from our room facing east. It was amazing to watch the dawn without even getting out of bed! […] The breakfast at the hotel is excellent, with a wide selection.”
- “First line, varied good breakfasts, live Wi-Fi, large pool, chic beach. Simply bliss. […] The hotel restaurant is quite expensive by local standards, but there are plenty of interesting places on either side of the beach to suit any budget.”
- “Beautiful sandy beach that’s almost always deserted. Large pool with a pleasant relaxation area. […] Communication with the staff is extremely formal; you don’t feel like a valued guest, and you definitely shouldn’t expect an individual approach here.”
What’s Next
Deciding which area of Bali to stay in – Sanur, Seminyak, Ubud, Canggu or Uluwatu – read our review “Which Area of Bali to Choose a Hotel In” where we break down the pros and cons of each option.
Prices, room availability, and service composition may change – check for up-to-date information before your trip.
