Building/purchasing A Small Hotel

[bluxed]

I am interested in more information about purchasing a 10 room hotel. Typical cost to build the structure from the ground up? How hard would it be for me to be the owner of one? I am a United States citizen.

If anyone has any other information or links it would be appreciated.

[Mossfinn]

Send Simon43 a PM, he has built his own, at that time, in Phuket and from memory, the end result was pretty good value.

[ThaiBasil]

I just read a moment ago that worldwide hotel room prices dropped 17%.

[LeungKen]

Send Simon43 a PM, he has built his own, at that time, in Phuket and from memory, the end result was pretty good value.

I think you'll find that whilst having the costs for opening a small resort, Simon 43 will probably warn you it's the owning of the hotel that is the worry, as he has had to walk away from his investment, due to his wife's "illness".

Be very careful, and check everything before proceeding would be my advice.

[simon43]

Well, not totally true LeungKen I walked away from the 'ex', but not from the business. I still look after all the bookings. bills etc from my 'secret hideaway' x hundred km from Phuket, and I still receive revenue from the hotel. But the business is for sale because my ex cannot keep up with all the work that is needed to look after customers each day).

I just noted that Buxed is a US citizen. That can make the owning of a Thai business (almost any business) much more secure because he can register his Thai company as an Amity company and have 100% non-Thai shareholders, (the majority have to be US citizens). Since a Thai ltd company needs 3 shareholders, he can establish this company with a minimum of 2 US citizens and be able to legally operate in Thailand without the sort of problems that can arise for us non-US citizens.

Simon

Edited September 15, 2009 by simon43

[farangpattaya]

Well, not totally true LeungKen I walked away from the 'ex', but not from the business. I still look after all the bookings. bills etc from my 'secret hideaway' x hundred km from Phuket, and I still receive revenue from the hotel. But the business is for sale because my ex cannot keep up with all the work that is needed to look after customers each day).

I just noted that Buxed is a US citizen. That can make the owning of a Thai business (almost any business) much more secure because he can register his Thai company as an Amity company and have 100% non-Thai shareholders, (the majority have to be US citizens). Since a Thai ltd company needs 3 shareholders, he can establish this company with a minimum of 2 US citizens and be able to legally operate in Thailand without the sort of problems that can arise for us non-US citizens.

Simon

Visit the Sunbelt Asia website (click on banners in this forum).

There are lists of various businesses for sale and you can subscribe for the weekly businesslistings. Last week 2 or 3 new hotel-deals on the list.

Sunbelt is also able to give you all possible information on ownerships and other matters.

[DonJuanDemarco]

dont worry mate i am sure there are plenty out there to take ur money faster than you say khap khun krap.

[keestha]

I am interested in more information about purchasing a 10 room hotel. Typical cost to build the structure from the ground up? How hard would it be for me to be the owner of one? I am a United States citizen.

If anyone has any other information or links it would be appreciated.

About purchasing: many of the businesses for sale ads concern situations where you can only purchase the business, and not the premises and the land they are built on. You will have to pay rent. Crucial is the length of the lease, don't rely on contractual clauses that the lease can be renewed: very well possible the Thai text will state that the lease can be renewed if the owner and the leaser can agree. Purchasing a business including the real estate is a different ballgame.

About building, just to give a vague indication: when I rebuilt my resort after the 2004 tsunami, in the course of 2005/2006, a simple 28 square meter bungalow cost me about 100,000 Baht.

The costs depend on:

1) Are you planning a super luxurious boutique hotel or a backpackers lodge?

2) If you employ the services of a building firm, especially one with English speaking staff which is geared for ( preying on?) foreigners, it will be more expensive then when you find a building crew yourself, and purchase the materials yourself. If you do it the latter way, you have to agree on a fixed price for the labour, and pay them in installments. Beware they might keep on asking for money before installment time is due, and disappear once little money is left but still a lot of labour has to be done. If you simply pay them by the day, they might just take it easy and work very slowly.

Anyways if you build yourself it should be a lot cheaper than when you purchase a running affair. How much a running affair should cost, well what an idiot gives for it, very difficult to quote a realistic price range. The seller will make most of his money selling the place, and not whilst running it.

As far as property constructions are concerned, you are a US citizen so you could use the provisions as laid down in the Amity Treaty, others know more about this than I do.

Good luck,

Kees.

[monty]

About building, just to give a vague indication: when I rebuilt my resort after the 2004 tsunami, in the course of 2005/2006, a simple 28 square meter bungalow cost me about 100,000 Baht.

I think simple is the keyword here!

A/C (9000 BTU) about 13,000 Baht

Little mini bar fridge: 5,000 Baht

Furniture (cheap Index stuff): 10,000 Baht

Bathroom fittings (including water heater): 10,000 Baht

Towels, bed linen: 2,000 Baht

Leaving you with 60,000 Baht for the structure, or just 2000 Baht/sqm!

[monty]

And I thought that 100% foreign owned companies under the US Amity treaty were not allowed to hold land. To do that you'll have to be 49% foreign owned!

No problem of course if you want to lease...

[keestha]

About building, just to give a vague indication: when I rebuilt my resort after the 2004 tsunami, in the course of 2005/2006, a simple 28 square meter bungalow cost me about 100,000 Baht.

Quoted price range does not include furniture, aircon units and waterheaters, just the structure, but including bathroom fittings.

[kcallagmy]

I am interested in more information about purchasing a 10 room hotel. Typical cost to build the structure from the ground up? How hard would it be for me to be the owner of one? I am a United States citizen.

If anyone has any other information or links it would be appreciated.

i sent you an personal mail about a small resort for sale.