100 hotels on Koh Samui forced to sell up due to COVID-19 crisis

[baansgr]

Time to open a new Charlie's Hut

[Don Mega]

1 hour ago, ToThailand said:

70000 people working for 600 hotels? That average 116 people per hotel. Those numbers cant be correct ????

38 people per shift.

For bigger hotels I can see that number being needed if not more, businesses in Thailand do seem to have a lot of superfluous staff though.

[SupermarineS6B]

18 hours ago, Jonny1959 said:

Back to the 90's.

Take the hotels away and plant palms.

Samui was a very beautiful island in the 80's and 90's.

Now it is only expensive and overpriced.

 

Just like the rest of the islands..... Used to be great back in the 80s and 90s, now greed has truly taken over and it's a miserable experience ,,,,,,,,  Used to go to Krabi back in the day, 150-200 bht bungalows, great stuff, overnight jumped from 200 bht to 1500 bht a night !  Nice one, had to laugh when the Tsunami washed the lot away....... karma..... 

[Pravda]

9 minutes ago, SupermarineS6B said:

Just like the rest of the islands..... Used to be great back in the 80s and 90s, now greed has truly taken over and it's a miserable experience ,,,,,,,,  Used to go to Krabi back in the day, 150-200 bht bungalows, great stuff, overnight jumped from 200 bht to 1500 bht a night !  Nice one, had to laugh when the Tsunami washed the lot away....... karma..... 

 

Only the privileged westerner is allowed to make money?

 

If Thai do they deserve to die? 

 

UK pound down to 10 baht soon. 

 

Karma

 

 

[LivinLOS]

I would love to see the prices of these assets for sale. 

A business that's losing money, and that has a maintenance / carry cost on the asset has a negative value. The estimation of future earnings has risk, for which a return must be compensated.. Maybe it still loses money in 2021, or even for the next few years before any recovery is in sight. 

If thats factored into actual pricing, I would be very interested in looking at smaller resorts on the east or south. 

[LivinLOS]

16 hours ago, mickymouse1 said:

Give me an example of 1 resort/ hotel that is going cheap!!! I know few but not cheap as you might think.

exactly my point.. Using pie in the sky hoped for land values, multipled by boom years best ever takings.. And factored out far into the future, appears to be the lowest prices considered by anyone. 

Land office valuation land.. Building costs discounted by age.. Before creditors foreclose.. I would be genuinely interested to look. 

Feel free to PM me any of these 'deals' mentioned. 

[AhFarangJa]

16 hours ago, smedly said:

I wonder who is buying them up on the cheap

 + 

[mr mr]

13 hours ago, Bluespunk said:

Is is as grim as the destruction wrought by mass tourism?

best comment of the thread. 

[Andycoops]

19 hours ago, ezzra said:

Any one with cash at hand can make a killing now buying properties at rock bottom price and when things will look up, and they will, will at least double their money...

And the Chinese who started it will be the first in.

[henry2109]

19 hours ago, ezzra said:

Any one with cash at hand can make a killing now buying properties at rock bottom price and when things will look up, and they will, will at least double their money...

I call this kindergarden-economics.

 

If it were so clear, that within 1 - 2 years the price of the properties would at least double, do you really think that anyone would sell? Do you think that any bank would make a foreclosure and lose big amounts of money, when they just can wait 1 - 2 years an get their full amount of mortgage back?

 

The people who try to sell their hotels try to get the best price they can. Mostly there will be no match between the owner and a possible buyer.

 

And for the buyers who find the match, there are big risks connected with such a purchase, which obviously have to be considered by valuing the hotel. One of the biggest risks is that demand for hotel capacities will not come back, even not after 2 years, while the supply stays more or less the same. So the net proceeds from the ongoing business could well shrink considerably in the future compared with the good years in the past.

[Jiggo]

18 hours ago, smedly said:

I wonder who is buying them up on the cheap

We all know the answer to that one.

[Gervais Bilodeau]

19 hours ago, Jonny1959 said:

Back to the 90's.

Take the hotels away and plant palms.

Samui was a very beautiful island in the 80's and 90's.

Now it is only expensive and overpriced.

 

My first visit was in 1991.

Yes It was superb back then.

My last visit in Lamai beach was in 2013 and I could barely recognize anything from 5 years before.

I will never go back again.

[ICELANDMAN]

21 minutes ago, henry2109 said:

I call this kindergarden-economics.

 

If it were so clear, that within 1 - 2 years the price of the properties would at least double, do you really think that anyone would sell? Do you think that any bank would make a foreclosure and lose big amounts of money, when they just can wait 1 - 2 years an get their full amount of mortgage back?

 

The people who try to sell their hotels try to get the best price they can. Mostly there will be no match between the owner and a possible buyer.

 

And for the buyers who find the match, there are big risks connected with such a purchase, which obviously have to be considered by valuing the hotel. One of the biggest risks is that demand for hotel capacities will not come back, even not after 2 years, while the supply stays more or less the same. So the net proceeds from the ongoing business could well shrink considerably in the future compared with the good years in the past.

I agree, the banks cannot afford to lose the value on the credits granted so the Chinese can now buy hotels no to buy at a low price that the article mistakenly says but to invest their money out of China and to clean it up step, also not problems for Chinese pay the hotel prices in Thailand too high on the international hotel market, for Chinese investor on Thailand is also political welcome for China government.

 

 

[phetphet]

The potential Chinese buyers that will swoop in and snap up these businesses know they can make money from Chinese tourism.  The sheer weight of numbers of Chinese wanting to travel will see to that.

These middle and lower class tourists already visit Thailand. It is not a long haul like Europe. They cover some of their holiday costs by bulk buying lots of Thai food goods, (one can see them in the supermarkets filling their trolleys), which they then sell to their compatriots when they return home.

Just like other nations, there are many that will want to buy property or holiday home. Many for the same reason below.

 

These businessmen and tourists want to get their money out of China and Chinese control.

 

[Gilltom]

19 hours ago, Trentham said:

I first went to Koh Samui in 1984. Stayed at Lamai Beach in a bungalow with a palm frond roof. 50 baht per night for 2 people and another 50 baht each for 3 meals a day. It was magic. All the food was fresh caught in the sea or grown in their own garden. If I ordered a pina colada they would scramble up a palm tree to get a fresh coconut. Beautiful beyond words.

Sounds amazing it's a shame things like that change.some beautiful islands around Thailand then they  get to commercialised and spoilt.

[Susco]

18 hours ago, Bender Rodriguez said:

imagine, you have a few billions of "illegal" obtained money

and you want to invest...

 

you want to pay full price or you want to create a fake pandemic that many businesses will have to close & sell

 

and you can buy everything at an enormous PANIC discount ...

 

there are always people that will profit of the misery of others, they are at the top of the ivory tower...

 

when they did their bidding, the plandemic will be over and the profits can start 

Imagine you have a roll of tin foil laying around, and you have no use for it.

 

Then you make one big hat from it

[billd766]

19 hours ago, sawadee1947 said:

If you call this Govt idiotic..... How you would name those in UK or US??? 

Even Prawit got more brain than Bojo or Donald together. 

At least he got the more expensive watches. ????

 

16 hours ago, sawadee1947 said:

That is not quite right. 

It's about hotels on Samui which suffer from Corona because of "no customers ".

And it is about to open bars and restaurants again. 

And it has to do with tackling the crisis in a way so that tourists come back. 

Obviously you were in another thread. Start again. ????

Please enlighten me as to where did that come from, if it didn't come from you?

 

quote "If you call this Govt idiotic..... How you would name those in UK or US??? 

Even Prawit got more brain than Bojo or Donald together." 

 

 

[billd766]

7 hours ago, ToThailand said:

70000 people working for 600 hotels? That average 116 people per hotel. Those numbers cant be correct ????

It could well be if you take into account

 

Management, (day shift only) GM plus 1 or 2 duty managers plus main cashier

Front of house staff, reception, cashier. porter/security at least 2 shifts

Kitchen staff, cleaners, maids, laundry etc probably 2 shifts.

Outside staff, security (2 shifts) outside staff and cleaners.

[sawadee1947]

1 hour ago, billd766 said:

 

Please enlighten me as to where did that come from, if it didn't come from you?

 

quote "If you call this Govt idiotic..... How you would name those in UK or US??? 

Even Prawit got more brain than Bojo or Donald together." 

 

 

Maybe you should follow JHU statistics? 

Watch corona cases rising in UK and compare Thailand. 

Almost same number of people. 

But UK got an idiot as PM and adviser whereas Thailand.....made the right steps at the right time.

 

[hugolars]

On 6/6/2020 at 3:54 PM, samuiwonder said:

The hotels will not sell well, to anyone, as most are on a land lease anyway. With no income, eventually the landlords will just take them back over. 

Don't you think that most of them have also bought the land with loans?
Are all landlord without debts to banks?

[Letseng]

On 6/6/2020 at 7:16 AM, ezzra said:

Any one with cash at hand can make a killing now buying properties at rock bottom price and when things will look up, and they will, will at least double their money...

I doubt it. Who do you want to sell to?

[khunPer]

15 hours ago, baansgr said:

Time to open a new Charlie's Hut

Charlie's Hut already opened a new Charlie Hut...

[DavisH]

On 6/6/2020 at 2:11 PM, mr_lob said:

Sadly yes, and in many struggling parts of the World. China to the rescue!

China is asshoe!

Who sold their businesses to them in the first place? 

[bert bloggs]

On 6/6/2020 at 4:04 PM, ChipButty said:

If you wanna buy cheap wait until the bank has reprocessed   

Best of luck with that ,on our estate there is a house that at best is worth 12/14 million or was once . ,it was reprocessed by the bank 4 years ago ,its been reduced once ,now its for sale at 29 million . 

[Gulfsailor]

13 minutes ago, bert bloggs said:

Best of luck with that ,on our estate there is a house that at best is worth 12/14 million or was once . ,it was reprocessed by the bank 4 years ago ,its been reduced once ,now its for sale at 29 million . 

Thai banks refuse to sell assets below book value and also refuse to devalue assets from repossessions on their balance sheet. When a mortgaged property gets repossessed the bank loses the asset of the mortgage but gains the property, which will be valued at the mortgage amount. The result is that on paper the balance sheet doesn’t change and the bank does not have to write a loss. If the bank were the devalue a property due to market conditions, it would have to write a loss on it. So banks prefer letting property sit on their books indefinitely. The structure may get written off in 50 years, but the land it stands on never. 

[Susco]

32 minutes ago, Gulfsailor said:

Thai banks refuse to sell assets below book value and also refuse to devalue assets from repossessions on their balance sheet. When a mortgaged property gets repossessed the bank loses the asset of the mortgage but gains the property, which will be valued at the mortgage amount. The result is that on paper the balance sheet doesn’t change and the bank does not have to write a loss. If the bank were the devalue a property due to market conditions, it would have to write a loss on it. So banks prefer letting property sit on their books indefinitely. The structure may get written off in 50 years, but the land it stands on never. 

And that is why any Thai bank can default overnight, although having an excellent balance sheets and passing every audit.

 

[BangkokBoyJohnny]

On 6/6/2020 at 2:19 PM, Trentham said:

I first went to Koh Samui in 1984. Stayed at Lamai Beach in a bungalow with a palm frond roof. 50 baht per night for 2 people and another 50 baht each for 3 meals a day. It was magic. All the food was fresh caught in the sea or grown in their own garden. If I ordered a pina colada they would scramble up a palm tree to get a fresh coconut. Beautiful beyond words.

Yeh I went to "LamaiLamai" about the same time, well 1988, stayed right on the beach for 1 x GBP....

but that included breakfast I think !

[kingdong]

On 6/6/2020 at 6:16 AM, ezzra said:

Any one with cash at hand can make a killing now buying properties at rock bottom price and when things will look up, and they will, will at least double their money...

I,m sure they will double their money,should only take about 40 years.

[kingdong]

11 hours ago, sawadee1947 said:

 

But UK got an idiot as PM and adviser whereas Thailand.....made the right steps at the right time.

 

Like stopping all the Chinese tourists flooding in when corona became known?

[sawadee1947]

2 hours ago, kingdong said:

Like stopping all the Chinese tourists flooding in when corona became known?

Better than to ignore virologists and call covid a simple flu and enjoy another fathered girl in the meantime while still married. I'm talking about this fake as PM Bojo.