Cost Of Operating A Guesthouse. Patong

[ChangNoi75]

Hello everyone

I was hoping to get in touch with someone who have or is currently owning/renting a guesthouse.

I wonder what the typical costs are, electricy, water etc. (excluding rent and salary.)

20 rooms with aircon (key system)

Other comments regarding guesthouse business in Patong are welcomed

-Terje

Edited April 11, 2011 by ChangNoi75

[colinthailand20005]

There will be no hard and fast set amount, so many factors come into the equasion, how many occupants you have, how long are they in the room, how many showers they take, what condition are the air con units, police corruption, the list is endless!

I understand what you are trying to ask, but you will not get an answer on this forum or anywhere else, you just have to give it a go, but be prepared to lose your money, if you do it good luck.

[keestha]

Will you also be doing breakfast? Preferably your guesthouse should have a restaurant/bar downstairs which is open the whole day, also not bad to add a travel agency ,an internet room, and motorcycle rental. You will also need wifi.

In case you rent, it is very important to have a long lease, a lease which is more than 3 years has to be registered with the land office. Don't rely on options to extend the lease.

Good luck.

[cdnvic]

Do you have any experience in the field? Inexperience is often the biggest cost. There's a lot of people who open bars and guesthouses in Thailand with little or no prior experience and that contributes to the high failure rate.

[ChangNoi75]

There will be no hard and fast set amount, so many factors come into the equasion, how many occupants you have, how long are they in the room, how many showers they take, what condition are the air con units, police corruption, the list is endless!

I understand what you are trying to ask, but you will not get an answer on this forum or anywhere else, you just have to give it a go, but be prepared to lose your money, if you do it good luck.

Thanks. I do know that the numbers will vary. But i was looking for a ballpark number regarding water and electricy. Lets say 20 rooms with 50% occupancy. Fairly new aircons,

Police corruption? Should i take this into consideration when setting up budget?

Will you also be doing breakfast? Preferably your guesthouse should have a restaurant/bar downstairs which is open the whole day, also not bad to add a travel agency ,an internet room, and motorcycle rental. You will also need wifi.

In case you rent, it is very important to have a long lease, a lease which is more than 3 years has to be registered with the land office. Don't rely on options to extend the lease.

Good luck.

I was thinking more like a small sports bar downstairs. Internet is a must i agree.

Is there a down side to have the lease registered with the land office?

Thanks

Do you have any experience in the field? Inexperience is often the biggest cost. There's a lot of people who open bars and guesthouses in Thailand with little or no prior experience and that contributes to the high failure rate.

Well, i have no experince in this field. I guess thats why i ask theese questions. But i have good experience in business admin and marketing.

[keestha]

Often inexperienced people opening businesses like this, just don't understand that you have to minimize costs, and maximize turnover. A mistake I often saw them make, is occupying too much space in the building or on the plot of land for their own (maybe plus family) living quarters. Also they tend to think they'll get by with just renting out rooms, it doesn't work. People prefer a guesthouse where they can also have breakfast. Also, the season is short and competition is fierce, and to stay afloat you have to grab every extra little piece of turnover you can make. This means adding things like a bar/restaurant, travel agency, internet room, massage, motorcycle/car rental and so on. This business is quite marginal, and if you want to remain you absolutely have to grab every extra 100 Baht you can conceivably get.