Opening A Hotel/guesthouse In Thailand

[Julian3243]

I want to run a hotel/guesthouse in Thailand, thus i am looking for all the help, information, ideas, pointers ect. i can find, i'm hoping that there are people here who has experience and knowledge on the matter.

I speak a little thai as i have lived in Chiang Mai for a year (2011-2012)

It is an old dream to do this and now i feel it is time to actually live out that dream. I am not in it for the money neither am i running from something, i just want to stir up life and start doing something that gives meaning. My motivation besides this, is being able to give something back to a place that has given me so much through the years.

In future prospect i am hoping to use this project as a base for opening a school, a childrens home, an orphanage or another local-based non-profit institution.

If anyone would like to point me in a direction, help me out or simply whip or pad my back i would be thrilled !!

All the best, chok dee, Julian

[breadbin]

I'd say good luck.

It's not impossible but not easy.

If you're in the right location offering the right service at the right price at the right time I am sure you'll be a success.

Life is short, if you lose at least you've tried.

Best of luck.

[britgent]

Just do it. Even if it fails it will be a good story. But make it not fail.

Sent from my i-mobile IQ 6A using Thaivisa Connect Thailand mobile app

[iluvbeaches]

I want to run a hotel/guesthouse in Thailand, thus i am looking for all the help, information, ideas, pointers ect. i can find, i'm hoping that there are people here who has experience and knowledge on the matter.

I speak a little thai as i have lived in Chiang Mai for a year (2011-2012)

It is an old dream to do this and now i feel it is time to actually live out that dream. I am not in it for the money neither am i running from something, i just want to stir up life and start doing something that gives meaning. My motivation besides this, is being able to give something back to a place that has given me so much through the years.

In future prospect i am hoping to use this project as a base for opening a school, a childrens home, an orphanage or another local-based non-profit institution.

If anyone would like to point me in a direction, help me out or simply whip or pad my back i would be thrilled !!

All the best, chok dee, Julian

Julian, while your intentions may be in the right place going into business has only one point- to make money. If your not out to make money then you'd be better to focus your energy on your interests and hobbies as running a hotel/guesthouse is a lot of work, lots of competition and very little margins.

I have several friends who tried in different places in Thailand with the same outlook, just wanted a hobby and maybe break even and ended up with lots of woes and loans back home to pay a losing proposition in Thailand.

Why not just go straight into your passion? Use your money and spend it on helping existing reputable charities, get one of them to sponsor you with a work permit and help them raise money. Start your own once you understand the business climate and have the necessary licenses.

Not trying to be mean spirited, just trying to convince you that any business is just a job that needs to earn with passion and work, otherwise it is just a hobby and hobbies are a financially losing proposition. Of course if you are extreamly wealthy then my advice does not likely matter

[jimmybkk]

Unless the money you will be investing in this would leave you feeling like slitting your wrists if it fails, I say give it a go. In most cases i prefer regretting something that I did do, rather than regretting something that I didn't do. At least once I've done it I "know"...

In this case, if it's been a dream of yours for sometime, then what the hell... Give it a crack.

IMHO there are some things that Thai people do extremely well, and hospitality/service is one of them. They don't see working in the service industry as being beneath them, unlike it seems in the West these days, and as such they can make your guests feel extremely welcome.

What Thais sometimes lack is an eye for detail. So often, for example, you see that someone has taken the time and money to install a nice looking water feature and where the water exits the elephant's trunk (or whatever) there is that horrible blue plastic plumbing pipe sticking out that no-one has thought would look so much better if it was painted to match the colour of the elephant... or any colour, except that horrible blue... Lol.

First impressions in any situation are hugely important, and IMO in the guest house business it's essential to make a good one . I once saw an experiment on TV where they calculated that after making a bad first impression it takes around 7 good impressions to get things even again. People coming to your guest house, who may be weary from a long journey, want to experience hospitality and efficiency when they arrive, and they want to enter their room for the first time, lay down on the bed feeling good about making the decision to stay at your place. You want them to have that "I think I'm going to like it here.." feeling. If you can get a friendly, smiling face handling your meet & greet, who efficiently shows them to their room (and not: "Errr... hold on please, Somchai's got the key and he went out for a smoke I think... As soon as we find him we'll take you to your room... "Somchai!.. Somchai!!!... Has anyone seen Somchai...?"), perhaps with a welcome glass of fruit punch and a cold towel, and then when they get to their room make sure there's no blue pipe in the elephant's trunk (lol)... then you're on your way to having happy guests, and happy guests will stay longer, spend more, complain less, and make recommendations to their friends.

Finally, once you have your guest house full of happy guests, reluctant to leave and eager to spend, make sure that they have plenty of things to spend their money on. Tours, trips, food, excursions, taxis, mini bar, snacks, souvenirs, whatever.... anything you can make a buck from, offer it all. If you're getting lots of families with kids coming through and the families are always looking for things to keep the kids occupied, buy an X-Box and some games and offer it for rent. Or buy a kids climbing frame, or a slide, or bouncy castle, or a couple of rabbits.... Be flexible and adapt to whatever you see a demand for. This is another area where Thais can be lacking - maximizing potential revenue. As an example, I once checked checked into a guest house in Chiang Mai and booked a room for a month. We were welcomed by the owner who was very hospitable and made us feel welcome. I asked for beer and was told they only have Singha and Leo. "No Heineken?" I asked. "Sorry, only Singha and Leo." was the reply. My missus then told the owner in Thai that I enjoyed a few drinks of an evening when i am on holiday. So I ordered 1 Leo and drank it there, then after we were shown to our room I headed downstairs past reception to walk about 100m up the street to a Mom & Pop shop where they sold Heineken and returned with 6 cans in a transparent plastic bag, walked back past reception where the owner sat, said "Hi" as I passed, and up to our room. For the entire month that we stayed at that place the owner watched me make that journey every day, and it never occurred to her that maybe she should stock a few Heineken in her fridge, and not only save me the journey to the Mom & Pop shop, but also put a few Baht into her pocket. Go figure...

Anyway - I sincerely hope you give this venture a go. You won't find many places in the world where you can try your hand at the guest house game as easily as you can here. Most important is to stay on top of things and don't let your standards slide - otherwise you will be just like all the other places, struggling to make a buck. It most likely won't be easy, but it is very do-able if you're prepared to fully invest your efforts and keep a positive outlook.

[taninthai]

Running hotel guesthouse you will be working 16-18hour days, you may say your not in it for the money but once the novelty wears of and you realise how hard work it is you wilk be wanting to turn a profit,speaking from experience 5 years of running a place,i have customers everyday telling me what a great relaxed easy lifestyle i have,if only they knew whats involved,if you are not running it for the money you will soon start losing money then see how much fun it is working them hours 7 days a week and not turning any profit

Sent from my GT-P7500 using Thaivisa Connect Thailand mobile app

[thrilled]

My opinion to much work for the pleasure ya get.But I'm A little on the lazy side myself.Good luck.

[Julian3243]

Seems like i have people on both sides here... Thanks for your input, everything helps me and the proces. I really appreciate everyones thoughts on this

Nobody seems to have any specific things to say regarding practical go abouts, i would love some actual pointers as to where you start, what its the prices, where is a good place so on... All inputs are welcome and helpful

Also, i've heard talks about local thugs/gangs running areas or districts... is it common to have to bribe or pay off monthly fees in this matter?

Thanks

[yoshiwara]

Bad idea unless you have pots to chuck at it.

[ThailandInvestmentGuide]

<snip> i would love some actual pointers as to where you start, what its the prices, where is a good place so on

Where to start? With a big piece of white paper. column down the left with your specific objectives of what you hope to achieve. columns to the right for your guesthouse idea plus the various other options that might achieve your objectives. then put in some ticks and crosses. Based on the little you have written thus far you seem to be developing tunnel vision on this one idea too early in the process.

When you are convinced that the guesthouse idea might provide the most ticks you need to start reading and talking to people on the ground ... about small business management and writing a business plan, about running a guesthouse, about thai laws and regulations related to running a business (and simply staying and working in the country). There are good books, they are good web sites, there are informed personal accounts from ppl who have been there and done that in expat fora. I wouldn't place too much weight on the "sounds cool, go for it" lines, remembering that there are very real potential downsides to launching forth with a dream like yours. Anyway, that's my take on where to start

Edited April 3, 2013 by ThailandInvestmentGuide

[taninthai]

You dont say if you have a thai partner, if you not have a thai partner you will not be able to set up bussiness,i would estimate you would need 500,000 bht minimum to get this going, if you dont have these two things you are of to a bad start best to keep it as a dream i think

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[Morden]

You are in for some hard work and frustration and you can't pick it up and out it down like a private hobby.

My wife has a restaurant. Not the same as a hotel, of course, but there are similarities. I was there daily for some months after it opened but have backed off almost completely now. The big problem is getting Thai employees to work as you would expect them to. After a few weeks, they seem to resent having to work for their wages. That needs very subtle Thai style handling otherwise they just leave. The upshot is that, unless you stand over them, you will never offer the service that you would like to.

We are also constantly frustrated by the attitude of suppliers and trades people. Even the ice truck turns up inconsistently, leaving my wife to buy from local shops on occasions. If we have a plumbing problem, the 'plumber' will turn up when he feels like it. The ice cream truck can't be bothered sometimes to turn off the highway to stop by. Leave this to employees and they won't give a damn if you are out of some essential and customers are inconvenienced.

I don't know what you have in mind regarding location but, in a tourist area, both rent and competition will be high. You must write for yourself a very realistic business plan and then assume that the income will be lower and the costs higher.

Give it a shot if you are enthusiastic and prepared to put in the time and handle the frustrations. i wish you luck.

[jimmybkk]

As a starter take a look at what's on offer on Sunbelt (www.sunbeltasia.com) and the other business listings websites. Location wise... totally up to you. Where do you want to live for the next few years? Is your target market Thai or foreigners? I wouldn't suggest targeting the Thai market unless you have a Thai partner, but if you do you may want to consider it. Thai guests will not spend as much as foreign guests (in general) but Thai guests will not be as seasonal, their numbers will not be affected by foreign currency fluctuations, nor by political instability, airport blockades, natural disasters etc.

Your lowest entry cost option would be to buy a going concern that is being poorly run, not showing much profit and is on a rental contract. This would be your best choice if you are looking for a "test the water" option. If you can afford it and you're serious about this as a long term investment, then you should look to own the land that the business sits on. Unless you're very unlucky the land will almost certainly gain in value over the years, even if the business is failing.

Don't worry about any thugs/gangs unless it's the police. If anyone tries it on when you're setting up or just started tell them that you're being looked after already thank you, and avoid specifics. If the police look to hit you up for some pocket money (which they shouldn't if you're running everything legit), then try to make sure you're paying someone senior enough to look after you should you need it, and unless it's a huge guest house and a booming success then a couple of thousand a month should cover it, if not less.

Good luck.

[samuibruno]

Seems like i have people on both sides here... Thanks for your input, everything helps me and the proces. I really appreciate everyones thoughts on this

Nobody seems to have any specific things to say regarding practical go abouts, i would love some actual pointers as to where you start, what its the prices, where is a good place so on... All inputs are welcome and helpful

Also, i've heard talks about local thugs/gangs running areas or districts... is it common to have to bribe or pay off monthly fees in this matter?

Thanks

hi julien

the fact that you dont know ,where is a good place? and prices? means you have done absolutely no research at all with your proposed dream

keep dreaming

or start taking an active roll in your future

[asupeartea]

A good friend of mine in China (Chinese) set up a very successful guest house. Before he even started planning his own place, he volunteered full-time in a friend's guesthouse for a year and then helped another friend build his own. He also traveled around visiting/staying in many different guesthouse that were considered the coolest/most interesting/most unique and appealing to him (lots of pictures taken). He regularly attends meetings and conferences of other hostel/guesthouse owners and gets/bounces ideas off them. With all of the details from first-hand experience, he found a cool building that fit his idea, fixed it up very well and opened for business. He had a few rough spots that family and friends helped him through but now he has 2 guesthouses and 18 coffee shops/book stores on the same very popular theme. His responses to challenges were lots of stoicism and creativity. Also, see if there isn't a website or two about business plans for small businesses in the hospitality business. Just reading others plans would get your mind in the right place to put this all together. BTW, my buddy is STILL having fun running his growing enterprise. He recently opened one of his coffee shops-book stores in Chiang Mai catering to the growing number of Chinese tourist coming to Thailand.

Edited April 4, 2013 by metisdead
Bold font removed.

[ozyjon]

Seems like i have people on both sides here... Thanks for your input, everything helps me and the proces. I really appreciate everyones thoughts on this

Nobody seems to have any specific things to say regarding practical go abouts, i would love some actual pointers as to where you start, what its the prices, where is a good place so on... All inputs are welcome and helpful

Also, i've heard talks about local thugs/gangs running areas or districts... is it common to have to bribe or pay off monthly fees in this matter?

Thanks

hi julien

the fact that you dont know ,where is a good place? and prices? means you have done absolutely no research at all with your proposed dream

keep dreaming

or start taking an active roll in your future

If you have lived in Thailand for 1 year then what visa are you on,, you should have more knowledge than you seem,, it's very hard to do business in Thailand because the government don't want you, just your money, you need to set up a company where you own 49% and the Thai partners own 51%, YOUR FIRST LOSS, and don't forget the Russians,, seriously if you want to do any business in this area seriously look at Cambodia and forget Thailand, as they say if you want to make a small fortune in Thailand bring in a large fortune and watch it disappear,, try to make friends with a Thai lawyer to give you advice, there are millions of hotels/guesthouses for sale, ever wondered why ?

[asupeartea]

If you have lived in Thailand for 1 year then what visa are you on,, you should have more knowledge than you seem,, it's very hard to do business in Thailand because the government don't want you, just your money, you need to set up a company where you own 49% and the Thai partners own 51%, YOUR FIRST LOSS, and don't forget the Russians,, seriously if you want to do any business in this area seriously look at Cambodia and forget Thailand, as they say if you want to make a small fortune in Thailand bring in a large fortune and watch it disappear,, try to make friends with a Thai lawyer to give you advice, there are millions of hotels/guesthouses for sale, ever wondered why ?

If you are American and perhaps a few others, you can set up an Amity business without the Thai partner. Then again, without the Thai partner you wouldn't have local expertise.

Edited April 3, 2013 by asupeartea

[outre99]

Hi Jullian,

many people here have different experiences. I've been running a small guest house and restaurant on the beach in Rayong. I opened it for the beach lifestyle and because my wife is an excellent cook. I wasn't in it for the money but more of beach lifestyle since i have a separate online business. My main requirements were not too far away from Bangkok, good infrastructure and internet connection, nice beach and low costs. I managed to find all of those just 2 hours south east from Bangkok on Maeramphueng Beach. We bought the business from an Italian guy who wasn't doing much with it and started our dream. My main focus was to provide clean affordable accomodation to fellow travellers and in the process we met a lot of cool people and had a great time. Of course, as with anything else, there are also the downsides, but running a guesthouse in Thailand doesn't have to be as difficult or stressful as others here are making it out to be. If that's what you want to do, I say , go for it.

Feel free to email me at bookings[at]maerabeachhouse.com if you have more questions. We're actually planning on making a move closer to my wife's family so the guest house will go on the market in a couple of weeks. I'll be happy to answer any other questions you have.

-Bear

[taninthai]

Hi Jullian,

many people here have different experiences. I've been running a small guest house and restaurant on the beach in Rayong. I opened it for the beach lifestyle and because my wife is an excellent cook. I wasn't in it for the money but more of beach lifestyle since i have a separate online business. My main requirements were not too far away from Bangkok, good infrastructure and internet connection, nice beach and low costs. I managed to find all of those just 2 hours south east from Bangkok on Maeramphueng Beach. We bought the business from an Italian guy who wasn't doing much with it and started our dream. My main focus was to provide clean affordable accomodation to fellow travellers and in the process we met a lot of cool people and had a great time. Of course, as with anything else, there are also the downsides, but running a guesthouse in Thailand doesn't have to be as difficult or stressful as others here are making it out to be. If that's what you want to do, I say , go for it.

Feel free to email me at bookings[at]maerabeachhouse.com if you have more questions. We're actually planning on making a move closer to my wife's family so the guest house will go on the market in a couple of weeks. I'll be happy to answer any other questions you have.

-Bear

lol slid the last paragraph in nicely, a great sales pitch........ May aswell join in we close our resort end of this month 10 rai beachfront 12 bungalows rent 500,000 bht,fixtures and fittings 220,000 bht plus the resort probably needs 200,000 spent on refubishment so it could be yours ready to run for 920,000 bht)

Sent from my GT-P7500 using Thaivisa Connect Thailand mobile app

Edited April 3, 2013 by taninthai

[USNret]

A good friend of mine in China (Chinese) set up a very successful guest house. Before he even started planning his own place, he volunteered full-time in a friend's guesthouse for a year and then helped another friend build his own. He also traveled around visiting/staying in many different guesthouse that were considered the coolest/most interesting/most unique and appealing to him (lots of pictures taken). He regularly attends meetings and conferences of other hostel/guesthouse owners and gets/bounces ideas off them. With all of the details from first-hand experience, he found a cool building that fit his idea, fixed it up very well and opened for business. He had a few rough spots that family and friends helped him through but now he has 2 guesthouses and 18 coffee shops/book stores on the same very popular theme. His responses to challenges were lots of stoicism and creativity. Also, see if there isn't a website or two about business plans for small businesses in the hospitality business. Just reading others plans would get your mind in the right place to put this all together. BTW, my buddy is STILL having fun running his growing enterprise. He recently opened one of his coffee shops-book stores in Chiang Mai catering to the growing number of Chinese tourist coming to Thailand.

Love this story! The guy did his due diligence & didn't just hang around websites asking how to do it. Well done!

Would you care to share the name of his CM bookshop/coffee shop?

[rgs2001uk]

Hi Jullian,

many people here have different experiences. I've been running a small guest house and restaurant on the beach in Rayong. I opened it for the beach lifestyle and because my wife is an excellent cook. I wasn't in it for the money but more of beach lifestyle since i have a separate online business. My main requirements were not too far away from Bangkok, good infrastructure and internet connection, nice beach and low costs. I managed to find all of those just 2 hours south east from Bangkok on Maeramphueng Beach. We bought the business from an Italian guy who wasn't doing much with it and started our dream. My main focus was to provide clean affordable accomodation to fellow travellers and in the process we met a lot of cool people and had a great time. Of course, as with anything else, there are also the downsides, but running a guesthouse in Thailand doesn't have to be as difficult or stressful as others here are making it out to be. If that's what you want to do, I say , go for it.

Feel free to email me at bookings[at]maerabeachhouse.com if you have more questions. We're actually planning on making a move closer to my wife's family so the guest house will go on the market in a couple of weeks. I'll be happy to answer any other questions you have.

-Bear

lol slid the last paragraph in nicely, a great sales pitch........ May aswell join in we close our resort end of this month 10 rai beachfront 12 bungalows rent 500,000 bht,fixtures and fittings 220,000 bht plus the resort probably needs 200,000 spent on refubishment so it could be yours ready to run for 920,000 bht)

Sent from my GT-P7500 using Thaivisa Connect Thailand mobile app

LOL, forgets to mention that place is dead during the week, and aint exactly heaving on a weekend.

Its been touted as the next "happening place" for more years than I care to remember.

Down in the same area, what ever happened to the Thai Nordic retirement project, wonder how many lost out there.

All I see down there are rows of shophouses doing nothing.

[asupeartea]

A good friend of mine in China (Chinese) set up a very successful guest house. Before he even started planning his own place, he volunteered full-time in a friend's guesthouse for a year and then helped another friend build his own. He also traveled around visiting/staying in many different guesthouse that were considered the coolest/most interesting/most unique and appealing to him (lots of pictures taken). He regularly attends meetings and conferences of other hostel/guesthouse owners and gets/bounces ideas off them. With all of the details from first-hand experience, he found a cool building that fit his idea, fixed it up very well and opened for business. He had a few rough spots that family and friends helped him through but now he has 2 guesthouses and 18 coffee shops/book stores on the same very popular theme. His responses to challenges were lots of stoicism and creativity. Also, see if there isn't a website or two about business plans for small businesses in the hospitality business. Just reading others plans would get your mind in the right place to put this all together. BTW, my buddy is STILL having fun running his growing enterprise. He recently opened one of his coffee shops-book stores in Chiang Mai catering to the growing number of Chinese tourist coming to Thailand.

Love this story! The guy did his due diligence & didn't just hang around websites asking how to do it. Well done!

Would you care to share the name of his CM bookshop/coffee shop?

Will do. It's in Chinese though.

[Eddythekid]

Running hotel guesthouse you will be working 16-18hour days, you may say your not in it for the money but once the novelty wears of and you realise how hard work it is you wilk be wanting to turn a profit,speaking from experience 5 years of running a place,i have customers everyday telling me what a great relaxed easy lifestyle i have,if only they knew whats involved,if you are not running it for the money you will soon start losing money then see how much fun it is working them hours 7 days a week and not turning any profit Sent from my GT-P7500 using Thaivisa Connect Thailand mobile app

Ha what a load of crap, I've had my very large guesthouse for 6yrs now, and other than the odd light bulb/ blocked trap/ leaking tap, I don't get involved. Oh sorry yes i do answer all emails, do accounts, and a little bit of marketing, If I work more than 7hrs a week I'd be lying. I taught my wife how to hire and fire, our staff are 3yr, 4yr and 6ys in the job, there's the secret to an easy life. My wife started working 3 days a week once our youngest started school, but that was by choice, and she finishes 5pm sharp on the 3 days that she works, when going away on hols we shuffle the rota to suite and pop off for a week on a family vacation. My staff do everything, each is trained to cook, clean and serve, and one has been given the dedicated job of maintaining the swimming pool, I never prop up my bar, you'll be lucky to see me in there one day a week, could it make more money if I was a piss-head probably, but then I could never live that life. PS I designed and built my place, with 2 little children to raise, don't listen to the negative crap on here, some people just got no balls, and will forever live in fear of their own negativity, and in doing so will never find true happiness.

[lemoncake]

Firstly, let me say that i do not agree with posters who claim you will not make money. You will make money, but you will also loose your health, hair, sleep, and everything else.

I own one, and have gone semi bold, grey hair, stressed, and the list goes on.

One of the biggest problems you will find is the staff, followed by the guests.

Guests do not grasp the concept "you get what you pay" they book cheap room but expect a 5 star hotel with 5 star service.

Bed too soft, bed too hard, air too cold, air too hot, and so on and on and on.

There are a number of factors to consider also, which again runs into problems

Location. In the city center or away, if in the city center, have big foot traffic, but also high rents, also complaining guests because of the noise. If away, less foot traffic, quite and again complaining guests it too far.

Standards. If you offer top nodge rooms,its nice, but up keep is expansive, while the room price is cheap. If you charge more, you have less customers but the costs are the same.

Marketing. You would need to position yourself, EVERYWHERE to be bookable by all kind of guests, you then would need to keep tight control over inventory as double bookings cost you money also.

[lemoncake]

Running hotel guesthouse you will be working 16-18hour days, you may say your not in it for the money but once the novelty wears of and you realise how hard work it is you wilk be wanting to turn a profit,speaking from experience 5 years of running a place,i have customers everyday telling me what a great relaxed easy lifestyle i have,if only they knew whats involved,if you are not running it for the money you will soon start losing money then see how much fun it is working them hours 7 days a week and not turning any profit Sent from my GT-P7500 using Thaivisa Connect Thailand mobile app

Ha what a load of crap, I've had my very large guesthouse for 6yrs now, and other than the odd light bulb/ blocked trap/ leaking tap, I don't get involved. Oh sorry yes i do answer all emails, do accounts, and a little bit of marketing, If I work more than 7hrs a week I'd be lying. I taught my wife how to hire and fire, our staff are 3yr, 4yr and 6ys in the job, there's the secret to an easy life. My wife started working 3 days a week once our youngest started school, but that was by choice, and she finishes 5pm sharp on the 3 days that she works, when going away on hols we shuffle the rota to suite and pop off for a week on a family vacation. My staff do everything, each is trained to cook, clean and serve, and one has been given the dedicated job of maintaining the swimming pool, I never prop up my bar, you'll be lucky to see me in there one day a week, could it make more money if I was a piss-head probably, but then I could never live that life. PS I designed and built my place, with 2 little children to raise, don't listen to the negative crap on here, some people just got no balls, and will forever live in fear of their own negativity, and in doing so will never find true happiness.

In other words, you have never ran the hotel, your wife works it. Because if you did work the hotel, you would know that staff do not stay for 3-4 6 years as you claim. Not only that, if you not there, they could not care less about cleaningness and everything else.

I too own a hotel, and 200% agree with taninthai, it is 16-18 hour days, 7 days per week.

[Tomtomtom69]

asupeartea, on 03 Apr 2013 - 18:32, said:

A good friend of mine in China (Chinese) set up a very successful guest house. Before he even started planning his own place, he volunteered full-time in a friend's guesthouse for a year and then helped another friend build his own. He also traveled around visiting/staying in many different guesthouse that were considered the coolest/most interesting/most unique and appealing to him (lots of pictures taken). He regularly attends meetings and conferences of other hostel/guesthouse owners and gets/bounces ideas off them. With all of the details from first-hand experience, he found a cool building that fit his idea, fixed it up very well and opened for business. He had a few rough spots that family and friends helped him through but now he has 2 guesthouses and 18 coffee shops/book stores on the same very popular theme. His responses to challenges were lots of stoicism and creativity. Also, see if there isn't a website or two about business plans for small businesses in the hospitality business. Just reading others plans would get your mind in the right place to put this all together. BTW, my buddy is STILL having fun running his growing enterprise. He recently opened one of his coffee shops-book stores in Chiang Mai catering to the growing number of Chinese tourist coming to Thailand.

Coffee shops/book stores or just coffee shops with free reading material, usually in English (with some Chinese and other languages too) are all the rage in China, especially the touristy areas popular with foreigners (as well as Chinese) including Kunming, Dali, Lijiang, Jinghong, Yuanyang and Shangri-la in Yunnan, Yangshuo in Guangxi and others. They are such cozy places to spend some time in. I'm not surprised that your friend would open a similar business in Thailand.

[Khun Jean]

I have to laugh at the posts about spending 16+ hours a day 7 days a week in a guesthouse/hotel.

If you do that then you are short on management skills, or like to sit in your own bar/restaurant and get wasted.

The reason i not started one yet is that a good location that is affordable is hard to find.

I will not rent as that is the biggest problem you will give yourself later.

New negotiations for future rental renewals are always going to be a burden on the business.

I buy land/guesthouse/hotel/resort outright (freehold) or it is not going to happen.

[lemoncake]

I have to laugh at the posts about spending 16+ hours a day 7 days a week in a guesthouse/hotel.

If you do that then you are short on management skills, or like to sit in your own bar/restaurant and get wasted.

The reason i not started one yet is that a good location that is affordable is hard to find.

I will not rent as that is the biggest problem you will give yourself later.

New negotiations for future rental renewals are always going to be a burden on the business.

I buy land/guesthouse/hotel/resort outright (freehold) or it is not going to happen.

I find it even more funny for someone to make a post about a business he never had

When you find cheap enough land and use your great managerial skills,which no doubt will work amazingly on Thai staff, then please come back and post your experience.

Until, then, i am sorry but you are in no position to judge or pass judgements on what and how this business works in this country.

PS. Of course one may choose to be smarter than anyone else by using his/her great managerial skills and be out of business in the first year or so. But will wait for your reports AFTER you have actually ran a business

PPS. this statement "New negotiations for future rental renewals are always going to be a burden on the business." is a clear indication you have never ran any business at all.

Businesses do not rent premises for 1 year, real business people make rental contracts for minimum 10 with conditions allowing for whatever changes.

Edited April 3, 2013 by lemoncake

[Khun Jean]

Well lets not go into the experience area. I know what i know.

A 10 year contract often IS the problem. It is not long enough and provisions in the contract are not always enforceable, like when the land has got a new owner.

Many landowners do not like long term rents. I don't know why, if i owned land on such locations i would be happy with long term contracts.

10 years would be enough time to recoup your investment, you need more years to get into real profits.

Another problem with 10 year contracts are that after 5-6 years you are going to have to make a big decision, maintaining the quality and keep everything in perfect order, or try to minimize costs and slowly quality slips (many run down resorts in Thailand that proves that) all with the knowledge that the landowner can ruin your investments on a whim when it is renewal time.

Now i can say back, you have probably never done business in Thailand.

And i stand by my opinion that a manager in any kind of business that is making 16+ hours 7 days a week is a very incompetent manager. Sounds more like a debt slave.

I don't need to have specific guesthouse/hotel in Thailand management experience to conclude that! It is just common sense.

Edited April 3, 2013 by Khun Jean

[Morden]

Running hotel guesthouse you will be working 16-18hour days, you may say your not in it for the money but once the novelty wears of and you realise how hard work it is you wilk be wanting to turn a profit,speaking from experience 5 years of running a place,i have customers everyday telling me what a great relaxed easy lifestyle i have,if only they knew whats involved,if you are not running it for the money you will soon start losing money then see how much fun it is working them hours 7 days a week and not turning any profit Sent from my GT-P7500 using Thaivisa Connect Thailand mobile app

Ha what a load of crap, I've had my very large guesthouse for 6yrs now, and other than the odd light bulb/ blocked trap/ leaking tap, I don't get involved. Oh sorry yes i do answer all emails, do accounts, and a little bit of marketing, If I work more than 7hrs a week I'd be lying. I taught my wife how to hire and fire, our staff are 3yr, 4yr and 6ys in the job, there's the secret to an easy life. My wife started working 3 days a week once our youngest started school, but that was by choice, and she finishes 5pm sharp on the 3 days that she works, when going away on hols we shuffle the rota to suite and pop off for a week on a family vacation. My staff do everything, each is trained to cook, clean and serve, and one has been given the dedicated job of maintaining the swimming pool, I never prop up my bar, you'll be lucky to see me in there one day a week, could it make more money if I was a piss-head probably, but then I could never live that life. PS I designed and built my place, with 2 little children to raise, don't listen to the negative crap on here, some people just got no balls, and will forever live in fear of their own negativity, and in doing so will never find true happiness.

It seems that you, or your wife rather, have been very lucky with staff.

How do you ensure that there is no theft of cash while you are enjoying your vacations?

Did you include return on capital outlay in your business plan? Making a living from a business is hard enough, even if you decide to write off your investment capital.