Considering buying a hotel in Thailand

[poohy]

1 hour ago, kwak250 said:

Is that bang Saphan area?

Not far away from Bangsaphan

[sanuk711]

6 hours ago, rathoz31 said:

I've been shopping for an investment for some time and recently discovered the hotel leasing option in Thailand.

rathoz31....what area are you looking at, or is it all optional?

 

About 2 years ago a close friend (farang) ended up with a nearly new hotel that he didn't want in Udon, 31 rooms 3 story walk up. He took one look at the amount of work / Staff involved and turned them into apartments (Just big rooms really) their nice with large balcony ----put water/electric meters on each room, electric doors on the front (key card access) coin washing machines etc..etc. He employs  just 2 staff, one (part time) cleans all the public areas & does any maintenance--the other is the night Guard/Security . They both get a room each. He doesn't rent to young Thai males, the place is very nearly full 70% is 2 (or more) to a room females, 20%  farangs or Thais with their lady. He tells me the rent on just 4 rooms pays for everything--all expenses ---electric in public areas is paid with the excess he gets from tenants.

 

Although he has halved all rents at the moment--and water is free, & He may have to put it down even further, if this drags on--but he will still be making money, unlike most of the hotels in this town.

 

Accommodation --"Rooms" isn't a bad investment in Thailand, There are a few people on here that have gone that route...But if you have your heart set on a Fawlty Towers set up......then best of luck in the future

[Led Lolly Yellow Lolly]

Quote

 

This insane economic shutdown is going to cripple millions financially. There will be alot of opportunities. A hotel is a risky one. Tourism could take years to rebound here, and there is a good chance it will never return to it's former levels. Wait. Many other opportunities will present themselves. 

 

And at a minimum, you would need a very good CPA to go over the books. And a private detective to research the background of the seller would not be a bad idea either. 

 

There are alot of scams out there. They are countless. You cannot be too careful with your hard earned savings. It is called self respect!

 

 

Not sure I'd use the word insane but I sure agree with you. We are looking to be shut down for a year, possibly more. Anyone that thinks the lockdowns will lift and everything will be back to normal on Tuesday is in some kind of cuckoo land.

 

 

 

Edited April 28, 2020 by NilSS

[eyup]

Wow! Buy a hotel in the current climate?  Thailand or anywhere!   I've seen already a few "entrepreneurs" offering you deals in Thailand lol  It seems too you have no/or little  experience of the hospitality business. Reminds me of an Aussie couple who bought a bar in Phuket a few years back. No previous experience either. Overheard. the following conversation. "Why did you buy a bar ?" Answer. was along the lines of,  "not much going on at home so fancied giving it a go, we've got nothing to lose have we?"   Well, I leave it to your imagination to guess the outcome!  Also FYI after over 30 years of dealing with Mr and Mrs General Public. (It's a long story) I would give Mr and Mrs GP a wide berth! Even more so in the days of social media and review sites.

[poohy]

7 minutes ago, UbonThani said:

spunds expensive for a quiet spot

Excellent location Planning permissions for extensions  beach front land restaurants swimming pool yep and was making a decent profit 

Not over the top cost wise really

[Olmate]

6 minutes ago, NiwPix said:

Oh, and to answer your question,

90k ROI on 140k investment does sound wrong. I -assume- it is 90k Sales/Income....NOT profit.

Hotel takes 8k a month?

[sungod]

Dont think the OP is too serious, topic started 7 hours ago and he is still on 1 post.

 

Interesting topic though.......

[Led Lolly Yellow Lolly]

1 minute ago, sungod said:

Dont think the OP is too serious, topic started 7 hours ago and he is still on 1 post.

 

Good catch, don't know how I missed that.

[sanuk711]

3 minutes ago, eyup said:

"Why did you buy a bar ?

The only answer I got from a friend who decided to go down that path also was.........."Well I'm there every night anyway, and my bar bill was getting outrageous"

[UbonThani]

8 minutes ago, poohy said:

Excellent location Planning permissions for extensions  beach front land restaurants swimming pool yep and was making a decent profit 

Not over the top cost wise really

tourism could slump for 18 months or more.

 

cost looks high given current outlook

 

people dont sell for no reason

Edited April 28, 2020 by UbonThani

[craigieboy1973]

Live and relax dont buy anything 

[Lacessit]

I'm amazed anyone would even think of buying any form of property in Thailand, let alone a hotel which will be empty for the foreseeable future. Stick to cash.

[Led Lolly Yellow Lolly]

The OP is likely trolling but it is an interesting topic though. If you go to Agoda, you will find most hotels still there, with availability. This seems strange but it's not, we still have our listing active on the OTAs. This keeps our search engine profile good, just keeps the wheels oiled. Out of 180 rooms, we are keeping 3 rooms active, fully serviced, minibars stocked etc, on a 'just in case' basis. ... .. .. Just in case someone books a room, and just in case I have an argument with my wife and need a bed.

[Yankeesvsredsox]

Be careful its the season for scams and its ripe!

[rwill]

140k.  I guess you would just be buying the business not the land and building.  How sure are you of their accounting figures?

Edited April 28, 2020 by rwill

[Logosone]

Why buy a hotel?

 

Why not rent one? You can rent one for 190,000 Baht a month, six months up front.

 

Much smaller outlay, you can test if it works, and if it's your thing. Then you can buy the place.

 

 

[Suddenplans]

My advice.  Watch a few episodes of Faulty Towers.

[ChouDoufu]

32 minutes ago, rwill said:

140k.  I guess you would just be buying the business not the land and building.  How sure are you of their accounting figures?

 

hire a manager and hope to break even.

cheaper than buying an elite visa?

[CharlieH]

54 minutes ago, NilSS said:

The OP is likely trolling but it is an interesting topic though. If you go to Agoda, you will find most hotels still there, with availability. This seems strange but it's not, we still have our listing active on the OTAs. This keeps our search engine profile good, just keeps the wheels oiled. Out of 180 rooms, we are keeping 3 rooms active, fully serviced, minibars stocked etc, on a 'just in case' basis. ... .. .. Just in case someone books a room, and just in case I have an argument with my wife and need a bed.

Do you own your property ? I assume you do as you said you have NO debt.

You also said about it being a year or more before market returns, and that anyone thinks otherwise is in a dreamworld, have I understood you correctly ?

[taninthai]

8 minutes ago, CharlieH said:

Do you own your property ? I assume you do as you said you have NO debt.

You also said about it being a year or more before market returns, and that anyone thinks otherwise is in a dreamworld, have I understood you correctly ?

I got the impression he is general manager for a large chain.

[Led Lolly Yellow Lolly]

I used to work in a chain in my 20s but here I married into a Thai family run fiefdom, why I know so much about Thai family run fiefdoms. The hotel is owned by my siblings, my IT business is owned by me. I do all the IT for the company (fiefdom) nationwide.

 

 

 

Edited April 28, 2020 by NilSS

[CharlieH]

12 minutes ago, NilSS said:

I used to work in a chain in my 20s but here I married into a Thai family run fiefdom, why I know so much about Thai family run fiefdoms. The hotel is owned by my siblings, my IT business is owned by me. I do all the IT for the company (fiefdom) nationwide.

 

 

 

interesting but doesnt answer my question.

[Led Lolly Yellow Lolly]

Well you seem to be just quoting me from previous posts, so any more stupid questions? Yes we own the business. Yes I said what I said. What I said is what I'm saying.

 

 

 

 

Edited April 28, 2020 by NilSS

[CharlieH]

6 minutes ago, NilSS said:

Well you seem to be just quoting me from previous posts, so any more stupid questions? Yes we own the business. Yes I said what I said. What I said is what I'm saying.

 

 

 

 

Nothing is stupid, I was merely making sure I understood you correctly as you appeared to be contradicting yourself, thats all. Please dont make personal remarks, its against forum rules, thanks.

[sam neuts]

Don't forget that you need a hotel license. If the hotel you are looking at doesn't have the correct license you will be in a heap of ___. It is very difficult to get the licence and fines are very high if you operate without one.

[iaminwa]

This is a wind up topic for sure right? Lol... no idiot in their right mind would

[Caine]

Why buy work. Biggest mistake you'll ever make.

Edited April 28, 2020 by Caine

[taninthai]

3 hours ago, NilSS said:

Well you seem to be just quoting me from previous posts, so any more stupid questions? Yes we own the business. Yes I said what I said. What I said is what I'm saying.

 

 

 

 

The up keep,maintenance and staff required for  a 180 room hotel is huge no matter if your dept free this still gonna have a big impact on your business,obviously probably in a better position to ride it out though than those that have debt/repayments to make.

also depends on what lifestyle your accustomed to obviously a 180 room hotel in high season is pulling big money as opposed to a smaller 10 room place.

i also think it’s difficult to call when a recovery could happen ,if Europe can get a grip on the virus and air travel opens up at reasonable prices Thailand could see a boom at the end off year,, all the Europeans not had any summer holidays will be itching to get away..  ....it’s a big if though

Edited April 28, 2020 by taninthai

[Led Lolly Yellow Lolly]

The absolute minimum we can get by with is 5 full timers, including a gardner to stop the property returning to the jungle, and a maid to sweep up the gecko turds. 

 

Parent company is an unrelated business, and it's business as usual there, so This end should be fine.

[Salerno]

4 hours ago, Logosone said:

Why not rent one? You can rent one for 190,000 Baht a month, six months up front.

The title of the thread is misleading, what he is looking at is what you suggest:

  

12 hours ago, rathoz31 said:

...recently discovered the hotel leasing option in Thailand