Thailand hoteliers forced to sell up as COVID hits cashflow

[webfact]

Picture: Bangkok Business News

 

Bangkok Business News reported that an increasing number of hoteliers had decided to sell their businesses due to the pandemic and its attendant problems. 

 

Marisa Sukosal Nunphakdee of the Thai Hoteliers's Association said that cashflow problems and inability to repay loans had sent many hotels to the wall and more would undoubtedly follow.

 

She said there had been many enquiries at banks and via real estate agents for investors wanting to pick up hotels if the price is right.

 

The media cited figures from a worldwide global commercial real estate services company called Jones Lang Lasalle (JLL) who are handling the sale of 17 hotels in Thailand this year.

 

They are not small enterprises.

 

Seven are worth under 500 million baht, nine are being sold for between 500 million and one billion baht and one exceeds 1 billion baht.

 

Three are in Bangkok, 4 in Phuket, 5 in Koh Samui and five in other provinces. 

 

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[ozzydon]

its ok the chinese will buy them at a price

[petermik]

6 hours ago, ozzydon said:

its ok the chinese will buy them at a price

cheap as chips......

[starky]

Someone will certainly cash in. Normally the ultra rich who thrive in an environment where people are forced to sell during hard times. The rich get richer an all that....

[ThailandRyan]

If the Chinese buy them up will they become casinos with large buffets, asking for my friend the Prawn fisherman.....

[Mac Mickmanus]

1 minute ago, starky said:

Someone will certainly cash in. Normally the ultra rich who thrive in an environment where people are forced to sell during hard times. The rich get richer an all that....

They will be taking a risk , they could end up with a hotel that doesnt make a profit for years , if ever . 

   They are taking the risk and they may profit or lose 

[Rampant Rabbit]

Great where s the bargains to be had, want beachfront resort for 5  million

[Rampant Rabbit]

25 minutes ago, webfact said:

Seven are worth under 500 million baht, nine are being sold for between 500 million and one billion baht and one exceeds 1 billion baht.

[DaveSamutP]

22 minutes ago, ozzydon said:

its ok the chinese will buy them at a price

Exactly. Chicken bones and cigarettes butts all over the lobby of the bombastically and comically named

 

Historical Luxury Family Mansion Hotel 

[Sharp]

Sucks big time when it looks like the bottom is looming so the new owners will be on the upside of the equation 

[rodknock]

the chinese will buy, have to launder all the sinovac money.

[RichardColeman]

42 minutes ago, webfact said:

She said there had been many enquiries at banks and via real estate agents for investors wanting to pick up hotels if the price is right.

Sounds like the Crassus syndrome is alive and living in today's Thailand

[ezzra]

Also mostly due to the wishy washy and wobbly policies of the the Thai government in regard to opening the country for less complicated tourism being all the place with what to open and when and under what conditions...

[HappyExpat57]

31 minutes ago, Mac Mickmanus said:

They will be taking a risk , they could end up with a hotel that doesnt make a profit for years , if ever . 

   They are taking the risk and they may profit or lose 

The Chinese usually play the long game.

[ThailandRyan]

10 minutes ago, HappyExpat57 said:

The Chinese usually play the long game.

Like many Thai women

[petedk]

42 minutes ago, Mac Mickmanus said:

They will be taking a risk , they could end up with a hotel that doesnt make a profit for years , if ever . 

   They are taking the risk and they may profit or lose 

If the Chinese buy them , then it is almost certainly money laundering. They will just fiddle the books.

 

[sammieuk1]

Your average cop can now afford a hotel then order some more plastic bags ????

[spidermike007]

There are many issues affecting tourism. One is the worst possible tourism minister, that could be selected. How about just admitting that expectations for your performance as tourism minister were not met? You failed. You failed so spectacularly, that there are few comparisons to make. Phiphat is to tourism, what Tim Tebow and Ryan Leaf was to the NFL, Chris Washburn was to the NBA, Paulinho was to Tottenham, and Prayuth is to the office of PM. All dismal failures. All huge disappointments. All incapable of fulfilling hopes or expectations.

Tourism is not returning anytime soon. The average Thai seems to attribute this to Covid. And that is a significant factor. But, there were a dozen issues plaguing the industry long before covid reared it's ugly head, income was dropping dramatically, as the "number of arrivals" were up, pointing toward a dramatically lower quality of tourist, that Thailand was able to attract. The heavy hitters, and the wealthy tourists have found many other places that meet their need for a nice bottle of wine with dinner (that is not overpriced to a mind boggling degree), a sommelier at the hotel who knows their wine, reasonable luxury goods, so the wife can shop here while on vacation, law and order that addresses jet ski scammers, sewage being dumped into the ocean in resort areas, control over the taxi goons, and far better transportation options (high speed trains, helicopters available for transport, etc). And I am only getting started, as there were a dozen other things that needed to be addressed, and were not on any level, by anyone. 

They still have not learned much. This was a great learning opportunity for Phiphat, and the other goombahs. Obstacles and tragedies can be learning experiences, for mature men and women. And they can offer a path toward improvement, and progress. But, apparently that does not apply to these authorities and so called leaders. 

Phiphat (and Prayuth) you have made history. 100 years from now, in the hospitality industry classes at the university level, they will still be teaching about you, as the man who presided over the once great industry of tourism, the man who helped destroy the industry millions depended upon. They will talk about you when the students are visiting the hollowed out shells, of once formerly great hotels, as the man who helped precipitate the demise and decline of Thailand, from the tiger of SE Asia (and at one time the 21st largest economy in the world) to a whiny, sickly, skinny, disease infested alley cat, on it's last legs. And on par with Burundi, Mauritania, Burkina Faso, Yemen, and Sierra Leone. 

 

 

[RJRS1301]

46 minutes ago, Rampant Rabbit said:

Great where s the bargains to be had, want beachfront resort for 5  million

A certain policeman's family may be looking to diversify their investments.

[kingstonkid]

59 minutes ago, spidermike007 said:

There are many issues affecting tourism. One is the worst possible tourism minister, that could be selected. How about just admitting that expectations for your performance as tourism minister were not met? You failed. You failed so spectacularly, that there are few comparisons to make. Phiphat is to tourism, what Tim Tebow and Ryan Leaf was to the NFL, Chris Washburn was to the NBA, Paulinho was to Tottenham, and Prayuth is to the office of PM. All dismal failures. All huge disappointments. All incapable of fulfilling hopes or expectations.

Tourism is not returning anytime soon. The average Thai seems to attribute this to Covid. And that is a significant factor. But, there were a dozen issues plaguing the industry long before covid reared it's ugly head, income was dropping dramatically, as the "number of arrivals" were up, pointing toward a dramatically lower quality of tourist, that Thailand was able to attract. The heavy hitters, and the wealthy tourists have found many other places that meet their need for a nice bottle of wine with dinner (that is not overpriced to a mind boggling degree), a sommelier at the hotel who knows their wine, reasonable luxury goods, so the wife can shop here while on vacation, law and order that addresses jet ski scammers, sewage being dumped into the ocean in resort areas, control over the taxi goons, and far better transportation options (high speed trains, helicopters available for transport, etc). And I am only getting started, as there were a dozen other things that needed to be addressed, and were not on any level, by anyone. 

They still have not learned much. This was a great learning opportunity for Phiphat, and the other goombahs. Obstacles and tragedies can be learning experiences, for mature men and women. And they can offer a path toward improvement, and progress. But, apparently that does not apply to these authorities and so called leaders. 

Phiphat (and Prayuth) you have made history. 100 years from now, in the hospitality industry classes at the university level, they will still be teaching about you, as the man who presided over the once great industry of tourism, the man who helped destroy the industry millions depended upon. They will talk about you when the students are visiting the hollowed out shells, of once formerly great hotels, as the man who helped precipitate the demise and decline of Thailand, from the tiger of SE Asia (and at one time the 21st largest economy in the world) to a whiny, sickly, skinny, disease infested alley cat, on it's last legs. And on par with Burundi, Mauritania, Burkina Faso, Yemen, and Sierra Leone. 

It is going to be interesting to see what happens to places like Walking street and Patpong.  Even after covid is gone I still do not see it ever getting to a point where people make money. The big money people are going to have to make s decision.

59 minutes ago, spidermike007 said:

 

 

[John Drake]

There certainly is a tendency on this topic for some to see the Chinese as an undifferentiated "yellow horde" who will buy up five star hotels and turn them into slaughter pits. What if something else takes place? What if the PRC Chinese do buy up a lot of hotels?  And what if they use them as the anchor end to bring in a new more upper class and sophisticated mainlander? I deal with many, many well educated professional Chinese who have come to Thailand and I like them. I would, for example, rather spend time with them than some of the more coarse Britpats and Amerexes I have had to deal with. The Chinese, in general, are smarter, more willing to adapt, and eager to learn than a lot of the hidebound Westerners who have set up shop here. Besides, Thailand is going to need them. In addition to the emptiness of immigration offices, abandoned condos, and fewer Western faces on the streets, just judging from Aseannow's postings, it seems there has been quite a culling of the existing expatriate herd. Lots of familiar names are gone for good, it seems. Add that into the ones that have moved back home and still post here in order to rationalize their decision to leave Thailand and there are just a lot fewer Western retirees here. Or so it seems to me. There is room for a certain class of Chinese to move in.

Edited September 8, 2021 by John Drake

[RJRS1301]

13 minutes ago, John Drake said:

There certainly is a tendency on this topic for some to see the Chinese as an undifferentiated "yellow horde" who will buy up five star hotels and turn them into slaughter pits. What if something else takes place? What if the PRC Chinese do buy up a lot of hotels?  And what if they use them as the anchor end to bring in a new more upper class and sophisticated mainlander? I deal with many, many well educated professional Chinese who have come to Thailand and I like them. I would, for example, rather spend time with them than some of the more coarse Britpats and Amerexes I have had to deal with. The Chinese, in general, are smarter, more willing to adapt, and eager to learn than a lot of the hidebound Westerners who have set up shop here. Besides, Thailand is going to need them. In addition to the emptiness of immigration offices, abandoned condos, and fewer Western faces on the streets, just judging from Aseannow's postings, it seems there has been quite a culling of the existing expatriate herd. Lots of familiar names are gone for good, it seems. Add that into the ones that have moved back home and still post here in order to rationalize their decision to leave Thailand and there are just a lot fewer Western retirees here. Or so it seems to me. There is room for a certain class of Chinese to move in.

The previous number of retirees from western countries, will decline in the future, and barely replace those who drop off the perch here.

 

[3NUMBAS]

gonna be years and years to recover if ever..long haul flights are in the dumps for ages

[hotchilli]

3 hours ago, petermik said:

cheap as chips......

Chop-suey.

[hotchilli]

3 hours ago, Mac Mickmanus said:

They will be taking a risk , they could end up with a hotel that doesnt make a profit for years , if ever . 

   They are taking the risk and they may profit or lose 

Or turn them into studio flats for their friends.

[Eric Loh]

50 minutes ago, John Drake said:

There certainly is a tendency on this topic for some to see the Chinese as an undifferentiated "yellow horde" who will buy up five star hotels and turn them into slaughter pits. What if something else takes place? What if the PRC Chinese do buy up a lot of hotels?  And what if they use them as the anchor end to bring in a new more upper class and sophisticated mainlander? I deal with many, many well educated professional Chinese who have come to Thailand and I like them. I would, for example, rather spend time with them than some of the more coarse Britpats and Amerexes I have had to deal with. The Chinese, in general, are smarter, more willing to adapt, and eager to learn than a lot of the hidebound Westerners who have set up shop here. Besides, Thailand is going to need them. In addition to the emptiness of immigration offices, abandoned condos, and fewer Western faces on the streets, just judging from Aseannow's postings, it seems there has been quite a culling of the existing expatriate herd. Lots of familiar names are gone for good, it seems. Add that into the ones that have moved back home and still post here in order to rationalize their decision to leave Thailand and there are just a lot fewer Western retirees here. Or so it seems to me. There is room for a certain class of Chinese to move in.

There is truth that the Chinese has a robust appetite for real estate assets especially in the hospitality sectors. There has been some outstanding trophy assets like the Waldorf Astoria and Baccarat Hotel. The Chinese not only has ample wealth but they are savy and sophiscated investors. And why not when the number of Chinese tourists travelling outside their country is expected to double to 234 million in the very near future. Chinese hotels that cater for the Chinese tourists make a lot of financial sense. 

[Cake Monster]

Even with the planned reopening of the whole Country on 15th October, there will not be sufficient Tourists to keep all the Hotels open, and prevent them going to the wall.

Many will just not bother to open, and those that do, will need to have a very large cash supply in order to do so.

Hotels will find that it is more cost effective to remain closed as opposed to opening, finding and Employing Staff, along with all the associated overheads that will come from the doors opening - Electricity Etc, will not be a viable thing to do.

And with a much lower occupancy rate, there will be no way out of this mess in the foreseeable future for many.

[Peterphuket]

4 hours ago, Rampant Rabbit said:

Names, names, we need names.

[spidermike007]

1 hour ago, John Drake said:

There certainly is a tendency on this topic for some to see the Chinese as an undifferentiated "yellow horde" who will buy up five star hotels and turn them into slaughter pits. What if something else takes place? What if the PRC Chinese do buy up a lot of hotels?  And what if they use them as the anchor end to bring in a new more upper class and sophisticated mainlander? I deal with many, many well educated professional Chinese who have come to Thailand and I like them. I would, for example, rather spend time with them than some of the more coarse Britpats and Amerexes I have had to deal with. The Chinese, in general, are smarter, more willing to adapt, and eager to learn than a lot of the hidebound Westerners who have set up shop here. Besides, Thailand is going to need them. In addition to the emptiness of immigration offices, abandoned condos, and fewer Western faces on the streets, just judging from Aseannow's postings, it seems there has been quite a culling of the existing expatriate herd. Lots of familiar names are gone for good, it seems. Add that into the ones that have moved back home and still post here in order to rationalize their decision to leave Thailand and there are just a lot fewer Western retirees here. Or so it seems to me. There is room for a certain class of Chinese to move in.

Nope. Not gonna happen. As I have stated many times, there are a dozen very good reasons why wealthy people do not visit Thailand anymore. And the few who come, never return.

 

The wife cannot buy her cherished, latest model handbag, because it is so over priced due to onerous luxury taxes.

We cannot get a great bottle of wine at dinner, at the hotel, without spending 20,000 baht. 

We cannot hire a helicopter in Bangkok, to get to Phuket easily. All other countries offer this. Why not Thailand?

At the fanciest restaurants, we are disappointed with the level of sommelier service, and expertise about the latest truffle arrival.

I cannot call the police when something bad happens. People tell me instead, to avoid the police here, as they are toxic, ineffective, crazy corrupt, and not helpful. 

 

I could go on, and on all day. I have some very wealthy friends. They are discerning, they want the best, and they are not willing to get taken for a ride in the process.

 

 

[Mr Meeseeks]

10 minutes ago, spidermike007 said:

We cannot hire a helicopter in Bangkok, to get to Phuket easily. All other countries offer this. Why not Thailand?

Private helicopter ownership is illegal in Thailand. 

 

You need special permission to own and operate a helicopter fleet i.e. offshore flights for oil platforms etc.

Edited September 8, 2021 by Mr Meeseeks