Buying A Hotel In Thailand

[Livinginexile]

This is something that may or may not eventuate but I business associate is interested in buying a hotel in Bangkok.

He is a Dubai local (very rich or coarse) and is looking to invest outside of the UAE now that there is a dark clowd over the real estate development market here.

He knows Thailand, he takes his family there twice a year and loves the place.

If this comes off, I have been offered a position managing the business. (I have no hotel experience but how hard can it be?)

Basically, what are the rules concerning foriegners buying businesses?

I have a Thai wife, could she be our local partner?

We will be in Thailand in December and we will be seeing a lawyer but it would be great to get an outline of the rules.

Thaks guys

[cclub75]

First regarding regulations, foreign ownership (FBA, etc.) , services businesses etc :

http://bangkokpost.com/211108_Business/21Nov2008_biz44.php

Then, regarding... the opportunity of launching a hotel business right now in Thailand :

http://www.nationmultimedia.com/2008/11/22...ss_30089055.php

[phaethon]

http://www.nationmultimedia.com/2008/11/22...ss_30089055.php

Moreover, Thai Airways International should reduce air fares, and Airports of Thailand is urged to cut its airport fees in order to persuade international carriers to keep their operations in the country, he added.

Yes, yes, yes, yes... :D

[Livinginexile]

First regarding regulations, foreign ownership (FBA, etc.) , services businesses etc :

http://bangkokpost.com/211108_Business/21Nov2008_biz44.php

Then, regarding... the opportunity of launching a hotel business right now in Thailand :

http://www.nationmultimedia.com/2008/11/22...ss_30089055.php

Yes but...there are a few bargains to be had in the hotel market at the moment.

The old saying "buy in gloom and sell in boom" comes into play.

With the US$ so strong at the moment, it is a very good time to position oneself in the hospitality industry.

Personally I think it's too good to be true but I will follow the lead and see where it goes.

Thanx for the info.

[hanno]

I have no hotel experience but how hard can it be?

As a Hotel Manager: very hard. Always makes me laugh how people think running a hotel is easy just because they stayed in one a couple of times. They are just like the people that open a bar because they like beer who are then surprised when their business fails within short order.

[lazygourmet]

I have no hotel experience but how hard can it be?

As a Hotel Manager: very hard. Always makes me laugh how people think running a hotel is easy just because they stayed in one a couple of times. They are just like the people that open a bar because they like beer who are then surprised when their business fails within short order.

Cannot be more than agree with you! More than twenty years in the hospitality industry, and I am still learning - by making mistakes as well- every single day. Too many amateurs... But as soon they are failing -does not take too long-, there is a another bargain on the market. Let them play while we are waiting...

[Livinginexile]

I have no hotel experience but how hard can it be?

As a Hotel Manager: very hard. Always makes me laugh how people think running a hotel is easy just because they stayed in one a couple of times. They are just like the people that open a bar because they like beer who are then surprised when their business fails within short order.

Cannot be more than agree with you! More than twenty years in the hospitality industry, and I am still learning - by making mistakes as well- every single day. Too many amateurs... But as soon they are failing -does not take too long-, there is a another bargain on the market. Let them play while we are waiting...

Guys....

We are not talking about a big hotel here, just 40-50 room max!

Excuse my ignorance but isn't it all about marketing?

[chiangmaibruce]

Well sounds like an exciting proposition, and I am sure you realise you will need to hit the ground running on this one. Perhaps consider the services of one of the big firms like Colliers, Knight Frank (refer "quicksilva" in this forum), etc. They could review the existing operation (to help arrive at fair value, etc) and maybe then go on to help you with ideas and advice (e.g. positioning) should the purchase proceed.

Sure, marketing (in its broadest sense, ie. not just promotional activity) is certainly an important component in terms of bringing people to the hotel, but in terms of making it run some other key aspects are (and all of which need to mesh together seamlessly):

Human resource management, hiring & firing, training

Financial management, including managing room rates and occupancy, relations with travel industry businesses that help with bookings, relationships with suppliers and related businesses (e.g concessionaires)

Building management, including maintenance and possible redesign/renovation

IT/Telecom, which includes part of marketing

Guest relations, including maintaining relationships with regular customers

.... and I am sure others will chime in with many more issues you will need to come to grips with .

Good luck with the venture

[hanno]

And 16-hour days.

[lazygourmet]

And 16-hour days.

... at least

[Livinginexile]

Well sounds like an exciting proposition, and I am sure you realise you will need to hit the ground running on this one. Perhaps consider the services of one of the big firms like Colliers, Knight Frank (refer "quicksilva" in this forum), etc. They could review the existing operation (to help arrive at fair value, etc) and maybe then go on to help you with ideas and advice (e.g. positioning) should the purchase proceed.

Sure, marketing (in its broadest sense, ie. not just promotional activity) is certainly an important component in terms of bringing people to the hotel, but in terms of making it run some other key aspects are (and all of which need to mesh together seamlessly):

Human resource management, hiring & firing, training

Financial management, including managing room rates and occupancy, relations with travel industry businesses that help with bookings, relationships with suppliers and related businesses (e.g concessionaires)

Building management, including maintenance and possible redesign/renovation

IT/Telecom, which includes part of marketing

Guest relations, including maintaining relationships with regular customers

.... and I am sure others will chime in with many more issues you will need to come to grips with .

Good luck with the venture

Thanks for the info;

But isn't it just a matter of making the beds, feeding the guests, counting the money at the end of the day then off to the pub?

(Just kidding)

My backer has informed me that if his Dubai company can own the hotel and land outright then he is willing to buy...do you know if this is possible?

I am going to Bkk in December to consult with lawyers about this matter but I believe this is possible.

Anyone know if a foreign company can own a hotel business without a local partner?

[chiangmaibruce]

My backer has informed me that if his Dubai company can own the hotel and land outright then he is willing to buy...do you know if this is possible?

I am going to Bkk in December to consult with lawyers about this matter but I believe this is possible.

Anyone know if a foreign company can own a hotel business without a local partner?

Good news and bad news:

The good news is that there might be some special incentives available if you go ahead

http://www.boi.go.th/english/download/news/1222/O.76-1.pdf

The bad news is that I think you have pretty much no chance of owning a hotel & land outright as a foreigner, this being a list 3 business under the Thai regs

http://www.thailawforum.com/articles/foreignbusiness.html

[ianf]

This is something that may or may not eventuate but I business associate is interested in buying a hotel in Bangkok.

He is a Dubai local (very rich or coarse) and is looking to invest outside of the UAE now that there is a dark clowd over the real estate development market here.

He knows Thailand, he takes his family there twice a year and loves the place.

If this comes off, I have been offered a position managing the business. (I have no hotel experience but how hard can it be?)

Basically, what are the rules concerning foriegners buying businesses?

I have a Thai wife, could she be our local partner?

We will be in Thailand in December and we will be seeing a lawyer but it would be great to get an outline of the rules.

Thaks guys

I absolutely can't believe the spelling in this post. Is there no literacy left? Where are these people educated? Sorry but this is pretty bad.

Edited November 24, 2008 by ianf

[JimsKnight]

Maybe just being hasty in his wordage

[Livinginexile]

Maybe just being hasty in his wordage

Yep...

A little but too hasty.