Mystery over how Bali prison escapees ended up in luxury hotel 1100km away

Two of the escaped prisoners were reportedly found at the Novo Tourismo resort. Photo / Google Street View

Two of the men who escaped from Bali's Kerobokan jail have reportedly been found at a luxury resort that offers "romantic weddings" and conference facilities more than 1100 kilometres from the jail they fled.

Indian national, Sayed Muhammad Said, who is serving a 14-year sentence on drug smuggling charges and Bulgarian Dimitir Nikolon Ilev, serving seven years for ATM fraud, were tracked down at Novo Turismo resort in Dilli, according to local police.

The luxury resort contains "pool view rooms" and "presidential suites" with an in-house gym, entertainment and business centre and is a one hour and 45 minutes flight from Denpasar.

Australian man Shaun Davidson, 33, and Malaysian man Tee Kok King remain at large.

East Timor police chief superintendent Henrique Da Costa told Fairfax the two men had been arrested at the hotel.

It's thought the men entered East Timor two days ago by boat from the Indonesian island of Alor in East Nusa Tenggara.

A view of the tunnel that an Australian man and three other foreigners are believed to have escaped through outside Kerobokan prison in Bali, Indonesia. Photo / AAP

A hotel worker who didn't want to be named said "everything had returned to normal" at the hotel after the men were apparently found there during the morning shift.

"There is no problem in here, no big issues," he told news.com.au, adding that he thought the men had been guests but was "lacking clear information."

The daring escape made headlines around the world when the four men apparently squeezed through a narrow tunnel in a bid for freedom.

Mr Davidson, from Perth, had just two months and 15 days left to serve before he was due to be deported to Australia to face drug charges in Perth.

A wanted poster featuring Australian inmate Shaun Davidson is seen outside a convenience store in the Kerobokan area of Bali, Indonesia. Photo / AAP

Earlier, Badung Police chief Yudith Hananta had said the men could be shot if they resisted arrest.

"If they fight against police we will take firm action based on the police law, including shooting them," Mr Hananta said.

"We urge them to surrender. Don't let the police do firm action. Please come to the nearest police station to surrender.

Bali police had been unable to enter the tunnel earlier this week due to heavy rain that filled it with water.

Mr Hanata eventually sent another prisoner down it to double check none of the missing inmates were lodged in the mud.

Kerobokan prison is known as Hotel K by inmates and has been home to Shapelle Corby and members of the Bali Nine including Andrew Chan and Myuran Sukumaran who were killed by firing squad in 2015.