Guest House / Boutique Residence Businessin Chiang Mai - How Is It ?

[clinique]

we are looking at upgrading guest house to Boutique residence in Chiang mai.

this part of the market does relatively well compared to the Hotel market which is suffering.

the property is in good city location and quiet soi..

any comments on market conditions be appreciated a whether long term outlook is good for this business.

see also link below

cheers

http://classifieds.thaivisa.com/business/o...ence-48921.html

[WinnieTheKhwai]

Comment: This is hard to do when it all depends on other people giving you the money.

But yes, I think Western visitors especially like boutique hotels over traditional high-rise tourist hotels. I also think that current boutique hotesl are a bit overpriced, so don't count on always getting 4-5K a night.

If you can do a 'nice' stylish boutique experience for around 1500 baht then it may work.

Keep in mind just about ALL current backpacker guesthouses will go boutique in the next 5 years, putting a lot of squeeze on the market.

[clinique]

thanks for your comments, much appreciated.

its not all other peoles money,, we have invested 6.5 m of our own..

Also not sure we agree that ALL backpacker GH's will go boutique,, many if not most of such places will not fit the 'boutique ' definition with room size and service/s.

again appreciate your comments

[cmsally]

Personally from my point of view, the competition levels are so insane that I wouldn't be investing in this.

The market is fickle and not stable, prices are being driven down, meanwhile quality and expectations are being driven up.

Location is really important unless you are going to go really out of your way with service and even then it would be a struggle.

Difficult to comment further unless location specified.

[elektrified]

Keep your money in the (off-shore) bank where it is safe.

[clinique]

Keep your money in the (off-shore) bank where it is safe.

funny you should say that,, the offshore bank i used to use was taken over by the government,, and while my money was OK the shares I had in the bank no longer exist ...

needlessto say that i moved my money and it is now with a Singapore branch of a large NYSE listed bank..

frankly i have alwyas had a large portion ofunused capital in real estate and would rather keep it that way..

thanks for the advice tho,,

[clinique]

Personally from my point of view, the competition levels are so insane that I wouldn't be investing in this.

The market is fickle and not stable, prices are being driven down, meanwhile quality and expectations are being driven up.

Location is really important unless you are going to go really out of your way with service and even then it would be a struggle.

Difficult to comment further unless location specified.

hi, whilst we agree with you in regards to the general market we have chosen our location carefully and conducted seven months of surveying a certain part of the market,,, the segment between guest houses etal and Boutique hotels, and findthat segment is rather well balanced , has a high portion of repeat guests,, who would rather stay in a small boutique style place than stay in a large (predominantly EMPTY) 5 star hotel that they can stay in in any city in the world,,

thanks for your comments tho..

[clinique]

oh just another general comment as to why we dont keep a lot of money in banks - we dont like paying THEM to have our money which is the case in most instances with rates the way they are,, we would rathe rit was out working for us gettign a half decent return..

cheers

[cmsally]

I presume that you are aiming for the market that is targeted by places such as 3 Sis, Pak Chiang Mai, Vieng mantra, Tadkham etc etc.

In which case you have to ask yourself what do you have that they can't offer etc. It is still a tough market and not that much liquidity in the market if you want to offload.

Most of these places have a pretty prime location (well OK not including Tadkham), there's a starting point for comparisons.

[simoncnx]

ummmmmmm i just looked at the ad. why would anyone offer 12% return when they can borrow from the bank for less? unless they cant borrow from the banks in which case maybe the banks know something you dont? i would be very wary

[clinique]

ummmmmmm i just looked at the ad. why would anyone offer 12% return when they can borrow from the bank for less? unless they cant borrow from the banks in which case maybe the banks know something you dont? i would be very wary

because banks dont invest/lend their money for 1 year,,,

if they do its not at the rates you are thinking of !!

thanks for the helpful input.. perhaps get the facts strait before commenting nect time

[clinique]

I presume that you are aiming for the market that is targeted by places such as 3 Sis, Pak Chiang Mai, Vieng mantra, Tadkham etc etc.

In which case you have to ask yourself what do you have that they can't offer etc. It is still a tough market and not that much liquidity in the market if you want to offload.

Most of these places have a pretty prime location (well OK not including Tadkham), there's a starting point for comparisons.

perhaps and perhaps not,, and tough markets are often a good time to start something..especially if youve done your homework,,

your feedback is sincerely appreciated.

thx

[simoncnx]

ummmmmmm i just looked at the ad. why would anyone offer 12% return when they can borrow from the bank for less? unless they cant borrow from the banks in which case maybe the banks know something you dont? i would be very wary

because banks dont invest/lend their money for 1 year,,,

if they do its not at the rates you are thinking of !!

thanks for the helpful input.. perhaps get the facts strait before commenting nect time

um sorry but 1 i borrowed 3 mil baht for 1 year at mlr+2%

also its srtaight not strait

[clinique]

ummmmmmm i just looked at the ad. why would anyone offer 12% return when they can borrow from the bank for less? unless they cant borrow from the banks in which case maybe the banks know something you dont? i would be very wary

because banks dont invest/lend their money for 1 year,,,

if they do its not at the rates you are thinking of !!

thanks for the helpful input.. perhaps get the facts strait before commenting nect time

um sorry but 1 i borrowed 3 mil baht for 1 year at mlr+2%

also its srtaight not strait

great, which bank,

thanks for the tip !

and the spelling advice, not that i worry about itmuch on TV

[SomchaiCNX]

Well, I'm a little fed up with these boutique or whatever.

A 5* GH or hotel (building) with no * staff is just another......

Most think by adding "boutique" or "eco" they can start to charge more for .... nothing.

7 months research is not that much if you are not in the Travel or Hotel business.

A huge problem is that almost all of them are in hands of people who have the money (made with something else) but no idea about how to run the place. I would not use the word Boutique in the name.

You will need good staff (need to keep them as well) to help you. Be prepared to work 7/ 24/ 365 for the next 3 years.

[clinique]

Well, I'm a little fed up with these boutique or whatever.

A 5* GH or hotel (building) with no * staff is just another......

Most think by adding "boutique" or "eco" they can start to charge more for .... nothing.

7 months research is not that much if you are not in the Travel or Hotel business.

A huge problem is that almost all of them are in hands of people who have the money (made with something else) but no idea about how to run the place. I would not use the word Boutique in the name.

You will need good staff (need to keep them as well) to help you. Be prepared to work 7/ 24/ 365 for the next 3 years.

somchai..much appreciated advice,,

we do have about 15 years experience, the 7 months was just to determine the current situation effects on CM establishments, pre opening..

and agreed the staff are veryyyyyyyyyyyy important,,, ***** service..

thanks a lot for your input