leuven1

My (Thai) wife and I (Farang) want to built or buy a hotel (50 rooms) in Thailand. We're looking for some advise from experienced entrepreneurs who have taking this path before and learn from their experience. I am particularly interested in advise on the required licensing.

I was advised that the "owner" does not need a license but that the license to operate can be held by the "general manager", true?

Appreciate your insight and advise.

Of course there are dividend payments.

But, if I can choose between a steady income, controlled by me, out of real estate versus depending on a dividend payment, of almost nothing, not controlled by me, I choose real estate any time.

Just my opinion.

Dear all

I have read all your responses with great interest! The original question started of as one related to finance but some very valid points have been raised in the "lessons learned" category.

The single most important goal in my investment strategy is to generate multiple sources of income. I have two other single unit properties which generate decent returns but the risk of loosing a single tenant (and income source) is high, hence the concept of spreading that risk through an investment into a multi-unit property.

Somewhere between the apartment building, or a hotel, and a single unit property (house or condo), must be a great investment just waiting to be discovered! Do mini malls make more money than an apartment building? Again, my goal is to generate income, not an increase of the principle investment amount.

The bank route is not very attractive to me as the returns are max at 5% or 6%. Investing in the stock market does not generate an income, only capital gains.

My sincere thanks for your input and suggestions.

One question remains: The estimated cost per square meter for a "standard" design building, ex-furniture. I was given a 8,000 Baht / meter estimate but if someone has better info, that would be much appreciated.

It is clear that this is a business that requires entrepreneurial skills beyond collecting rent, but the opportunities are endless. Creativity is what is needed.

Thanks to all

Excellent comments Digger!

I appreciate your comments! This is exactly the reason for my posting. I see hundreds of these buildings popping up all over the country. They seem to fill up nicely, so that is ok.

I have not yet figured out how the owners make money! Unless they are willing to take a very low margin and wait for a very long time.

I am looking outside Bangkok as the landprice in BKK makes the business case even more impossible. I am very interested to find out what I am missing! Most of the building being build have between 30 and 50 rooms, any building over three floors require a elevator to be installed, an additional 1M Baht in cost.

Hopefully someone in this forum can share the secret?

Thanks

My Thai wife and I are planning to aquire some land and build an apartment building for students. The rental income per unit will be about 2,500 Baht per month and the estimated project cost, incl. the land, about 12M baht.

I am looking for some lessons learned from other people who have succesfully build and managed one of these projects before. The estimates that I am getting for a build price / per room are about 8,000 Baht per square meter. For a basic design building of three floor, 30 rooms in total.

Appreciate the forum member's advice and guidance!

Thanks