New and Improved Lighthouse

[NamKangMan]

I heard he paid 10 million baht for the 10 year lease

That's around $300,000US. That's not so bad, but with around 100,000 baht per month rent, that's another 12,000,000 baht ($365,000US) for the life of the lease - that's a big commitment.

[falkan]

so who is the owner? another guy who sold his house and moved over 4 months ago? the real owner of lighthouse is laughing all the way to the bank.. stupid falangs..stupid falangs..stupid falangs..stupid falangs..stupid falangs

[LivinginKata]

I heard he paid 10 million baht for the 10 year lease

He told me he had a 9 year lease and I have no reason to doubt that. Where you get the 10 years from ? As for as price, million a year sounds about right. I had thought Jimmy Pierson never sold it, too high an asking price, but this guy confirmed to me Jimmy did sell it a while ago. Anyone know who is the new owner ?

[IrishIvan]

I heard he paid 10 million baht for the 10 year lease

He told me he had a 9 year lease and I have no reason to doubt that. Where you get the 10 years from ? As for as price, million a year sounds about right. I had thought Jimmy Pierson never sold it, too high an asking price, but this guy confirmed to me Jimmy did sell it a while ago. Anyone know who is the new owner ?

maybe it was 9 years. I heard it in Angel bar from some of the local expats

[jpeg]

Dined there tonight (after a few starts with places closed). Menu Ok, prices not so bad, service good, no complaints. The proprietor stopped by our table asking if we were Ok (a nice touch). I had a quick conversation. Australian guy (Dicky ?) and has a 9 year lease on the place. A few rooms for rent above the restaurant. Quite quiet for a high season night. The other bars on that road were packed. Best of luck to him.

Packed with loud mouthed drunken mongers. Nice to know Jimmy's reopened, will pay a visit.

As to Ao Chalong Yacht Club? Food SUCKS.

[KarenBravo]

At the other end of the strip, the Escape Bar, the land it's on was bought for 10 million Baht. No key money, no rent.

Unfortunately, the Aussie bloke that bought it split up with his missus, so, she got it.

She realised that she knew nothing about running a bar and has now leased it for one million a year + rent to Moo, the previous operator of the Tamarind Bar.I think she will easily make her money back.

Edited January 1, 2014 by KarenBravo

[stevenl]

So the rent/lease is 10 mio Baht for 9 years plus the monthly rent of maybe around 100.000 Baht?

[LivinginKata]

So the rent/lease is 10 mio Baht for 9 years plus the monthly rent of maybe around 100.000 Baht?

Don't think I said that. A lease deal does not usually require monthly rent to be paid. A rental agreement usually requires key money + monthly rent. I assume he paid 9 or 10 million up front with no further payment to owner. But I really don't know the deal that was made. However if 9 year lease then the transaction would have to be recorded on the land title at the Phuket land office.

[stevenl]

So the rent/lease is 10 mio Baht for 9 years plus the monthly rent of maybe around 100.000 Baht?

Don't think I said that. A lease deal does not usually require monthly rent to be paid. A rental agreement usually requires key money + monthly rent. I assume he paid 9 or 10 million up front with no further payment to owner. But I really don't know the deal that was made. However if 9 year lease then the transaction would have to be recorded on the land title at the Phuket land office.

See post #31, where the mention is of monthly rent + lease.

[stevenl]

I just wanted to have things clear, because here it is clearly mentioned 'lease + rent'.

Edited January 1, 2014 by LivinginKata

[LivinginKata]

I just wanted to have things clear, because here it is clearly mentioned 'lease + rent'.

No idea Steven. I stand by what I already posted above. Typical 9 year lease pays for the 9 year lease. End of story, but I have no idea of the contract details. We are all just guessing. But for sure it will be an expensive 9 year deal.

[stevenl]

I just wanted to have things clear, because here it is clearly mentioned 'lease + rent'.

No idea Steven. I stand by what I already posted above. Typical 9 year lease pays for the 9 year lease. End of story, but I have no idea of the contract details. We are all just guessing. But for sure it will be an expensive 9 year deal.

Neither do I, and I agree. I'm just curious if he is paying appx. 10 mio for 9 years plus appx. 100k per month or 'just' the 10 mio.

[LivinginKata]

Neither do I, and I agree. I'm just curious if he is paying appx. 10 mio for 9 years plus appx. 100k per month or 'just' the 10 mio.

Think we need to apply a bit of common sense. You really think anyone would pay 1 mill/year = 83,333 baht/month plus 100,000 baht/month. We think that the last operators paid 100k/month so I assume this new guy is paying a bit less considering he paid 9 years up front. Makes sense to me, well the cost. How he makes a profit every month of the year is beyond me.

[stevenl]

Neither do I, and I agree. I'm just curious if he is paying appx. 10 mio for 9 years plus appx. 100k per month or 'just' the 10 mio.

Think we need to apply a bit of common sense. You really think anyone would pay 1 mill/year = 83,333 baht/month plus 100,000 baht/month. We think that the last operators paid 100k/month so I assume this new guy is paying a bit less considering he paid 9 years up front. Makes sense to me, well the cost. How he makes a profit every month of the year is beyond me.

I would expect you're right, because that makes sense. But with prices here and people willing to pay stupid prices you really never know.

[LivinginKata]

Think we need to apply a bit of common sense. You really think anyone would pay 1 mill/year = 83,333 baht/month plus 100,000 baht/month. We think that the last operators paid 100k/month so I assume this new guy is paying a bit less considering he paid 9 years up front. Makes sense to me, well the cost. How he makes a profit every month of the year is beyond me.

I would expect you're right, because that makes sense. But with prices here and people willing to pay stupid prices you really never know.

Good point. I know a guy who bought a bar (well 3 year contract - note I say contract and not lease) in the old Tiger. Key money about 3 million up front and something like 65k baht/month rent. I expected him to go broke before the end of his second year but now many years later he has 4 bars in the new Tiger and is doing very well. I expect lady drinks and bar fines help boost the bottom line, but the Lighthouse does not have that sort of trade, well not yet.

[IrishIvan]

Think we need to apply a bit of common sense. You really think anyone would pay 1 mill/year = 83,333 baht/month plus 100,000 baht/month. We think that the last operators paid 100k/month so I assume this new guy is paying a bit less considering he paid 9 years up front. Makes sense to me, well the cost. How he makes a profit every month of the year is beyond me.

I would expect you're right, because that makes sense. But with prices here and people willing to pay stupid prices you really never know.

Good point. I know a guy who bought a bar (well 3 year contract - note I say contract and not lease) in the old Tiger. Key money about 3 million up front and something like 65k baht/month rent. I expected him to go broke before the end of his second year but now many years later he has 4 bars in the new Tiger and is doing very well. I expect lady drinks and bar fines help boost the bottom line, but the Lighthouse does not have that sort of trade, well not yet.

I am still amazed people get into the pimp trade in a foreign country. Would you do it in the homeland? I think blokes just meet a bar girl bride and then think they can get rich quick. Or get the mummasan wife to get more young women around. Anyway the lighthouse should do OK if they sell 200000 bahts worth of beer a month

[JetsetBkk]

<snip>

As to Ao Chalong Yacht Club? Food SUCKS.

(but totally agree )

[mikebike]

Perspective:

2007-2009 lighthouse rent 70,000 baht/month NO key money (Jimmy was still owner). Bar, restaurant + 4 rooms. 2 rooms long-term rented @ 15,000/month. Good core customers. 15 staff in high season, 8-10 in low season. In high season we made money, in low season we lost money - over the course of a year we made enough to cover expenses and our living and travelling... not much more and it was a &lt;deleted&gt; of a lot of work being open from 7:30-8am to 2am every day!

[LivinginKata]

Thanks for that perspective Mike. Good to get some real life numbers. Plus up 5 years and 100K/month rent (or 83.33K/month long term lease) sound about correct. Given the tourist/visitor downturn (in that sector) then it will be a struggle to break even.

[NamKangMan]

Thanks for that perspective Mike. Good to get some real life numbers. Plus up 5 years and 100K/month rent (or 83.33K/month long term lease) sound about correct. Given the tourist/visitor downturn (in that sector) then it will be a struggle to break even.

Just to give further "perspective" and to expand on your earlier post, and also IrishIvan's previous post, the rent on a bar in the new Tiger complex is around 70,000 baht a month.

As we all know, there is no accommodation, no food, no darts, no pool tables etc with these bars. They are very small and can only seat a very small amount of customers at any given time. The beer bars in the Soi off Bangla Road are the same.

In past years, rent was cheaper, and owners eked out a living. At 70,000 baht a month, they have had to raise the prices on their alcohol by around 20% to 100 baht a beer, and raise their bar fines by around 300% from 300 baht to 1000 baht, with a lady drink rising in price to around 220 baht.

This is where I agree with irishIvan. Bars used to be able to make a profit, primarily, from alcohol sales, but now NEEDS to make a big profit from the sale of sex. So, two lady drinks and a bar fine is aboun 1500 baht.

Families will not go into the Tiger complex and the regular sex tourist to Phuket, who knows a bit about Thailand, knows he's paying well over the odds. It's little wonder then the sex tourists are now chosing to go to Pattaya for their holiday, at 150 baht a lady drink and 300 baht a bar fine?

The sex has now become the bar's most profitable product, where it was alcohol in the past.

So, why has this happened, in my opinion, it's the greedy Thai landords here with ridiculously high rents that is outpricing Phuket against its competition.

They have pushed the food, beverage and sex prices for tourists to breaking point, through their high rents, with many chosing not to return here now.

If Phuket really wants the "high end" tourists to start coming back, I think the rents on this island would need a market correction.

[mikebike]

Thanks for that perspective Mike. Good to get some real life numbers. Plus up 5 years and 100K/month rent (or 83.33K/month long term lease) sound about correct. Given the tourist/visitor downturn (in that sector) then it will be a struggle to break even.

Our core customers were yachties and most were gone as soon as the Thai's took over, the rest when ACYC moved up the beach... The Lighthouse is very poorly situated for the tourist trade. Expats have found other venues... Good luck to the new managers but I see a big mountain to climb in their future!

[falkan]

sounds like we found the spot for thaivisa gathering and don't be so negative, go down and try it out!

[LiveSteam]

I think Jimmy's Lighthouse will always be a cool place to go without the bar girl nagging you about buying them another dink. Why is there so many negative vibs on the new owner? Lets give them a chance. I gave many a chance to rent it while I had it. I hope they do well and the repairs and redo look really good and I think they have done many improvements to the place. What they pay for rent or anything doesn't matter does it. They are doing something with their lives which is alot more than some here in Phuket. I have never seen a bunch of losers that now invade our lives now in Phuket. These guys seem good to me and you should go over and wish them luck too.

I for one wish them the best of luck.

Kind Regards,

Jimmy Lighthouse

[grumpyoldman]

I think Jimmy's Lighthouse will always be a cool place to go without the bar girl nagging you about buying them another dink. Why is there so many negative vibs on the new owner? Lets give them a chance. I gave many a chance to rent it while I had it. I hope they do well and the repairs and redo look really good and I think they have done many improvements to the place. What they pay for rent or anything doesn't matter does it. They are doing something with their lives which is alot more than some here in Phuket. I have never seen a bunch of losers that now invade our lives now in Phuket. These guys seem good to me and you should go over and wish them luck too.

I for one wish them the best of luck.

Kind Regards,

Jimmy Lighthouse

Good post, I agree. Will give it a go. Do they have Wifi ?

[KarenBravo]

I think Jimmy's Lighthouse will always be a cool place to go without the bar girl nagging you about buying them another dink. Why is there so many negative vibs on the new owner? Lets give them a chance. I gave many a chance to rent it while I had it. I hope they do well and the repairs and redo look really good and I think they have done many improvements to the place. What they pay for rent or anything doesn't matter does it. They are doing something with their lives which is alot more than some here in Phuket. I have never seen a bunch of losers that now invade our lives now in Phuket. These guys seem good to me and you should go over and wish them luck too.

I for one wish them the best of luck.

Kind Regards,

Jimmy Lighthouse

The three bars along that strip that are to the south, The Escape Bar, Office 2 Bar and the Tamarind Bar are all Non-girly bars. Don't know why you brought that up.

The Tamarind Bar and the Escape Bar have very good food, especially their Thai food.

At the Escape Bar and Office 2, spirits are 100 Bt all day, not just happy hour. The Tamarind have recently put their price for spirits up from 100 Bt to 120 Bt. All three bars have exactly the same view as the Lighthouse.

As I posted before, why would anyone go to the lighthouse which I'm sure is more expensive?

There must be something in what I say, because these three bars have much more business than the Lighthouse.

If the Lighthouse wants business, it must somehow differentiate between itself and these other three bars. Selling booze and food is not doing that. This is why the other reincarnations of the Lighthouse failed. They couldn't compete.

The Chalong regulars (there are few tourists) are price sensitive. Not because they are poor, but, because they live there long term and know the prices.

Edited January 4, 2014 by KarenBravo

[grumpyoldman]

I think Jimmy's Lighthouse will always be a cool place to go without the bar girl nagging you about buying them another dink. Why is there so many negative vibs on the new owner? Lets give them a chance. I gave many a chance to rent it while I had it. I hope they do well and the repairs and redo look really good and I think they have done many improvements to the place. What they pay for rent or anything doesn't matter does it. They are doing something with their lives which is alot more than some here in Phuket. I have never seen a bunch of losers that now invade our lives now in Phuket. These guys seem good to me and you should go over and wish them luck too.

I for one wish them the best of luck.

Kind Regards,

Jimmy Lighthouse

The three bars along that strip that are to the south, The Escape Bar, Office 2 Bar and the Tamarind Bar are all Non-girly bars. Don't know why you brought that up.

The Tamarind Bar and the Escape Bar have very good food, especially their Thai food.

At the Escape Bar and Office 2, spirits are 100 Bt all day, not just happy hour. The Tamarind have recently put their price for spirits up from 100 Bt to 120 Bt. All three bars have exactly the same view as the Lighthouse.

As I posted before, why would anyone go to the lighthouse which I'm sure is more expensive?

There must be something in what I say, because these three bars have much more business than the Lighthouse.

If the Lighthouse wants business, it must somehow differentiate between itself and these other three bars. Selling booze and food is not doing that. This is why the other reincarnations of the Lighthouse failed. They couldn't compete.

The Chalong regulars (there are few tourists) are price sensitive. Not because they are poor, but, because they live there long term and know the prices.

I'm going to agree with you to a certain degree KB, as I like the Tamarind Bar, but as far as just a different setting along there I'll probably give it a go.

Will report back and if they have Wifi, will take a photo and post.

Have we confirmed what they are charging for drinks?

[LivinginKata]

I had a glass of red wine - 160 baht.

[IrishIvan]

They have wifi there and the food is good. Had a 'lighthouse breakfast' there a few days ago. 180 baht. I'll be back for sure

[KarenBravo]

I know the Escape bar has wi-Fi.

I think wine is only 100-120 Bt a class for Mont Clair in the Escape and Office 2. Certainly nowhere near 160 Bt in the Tamarind.

One thing not mentioned, is that the staff in all three bars are friendly and they remember what you drink from the previous visit.

[Somtamnication]

So, is it improved?