Hotel/guesthouse Set Up

[pangeo]

Me and my friend are planning to set up a hotel or a guesthouse in Thailand, a small one. We would need some information about few things. We have checked Sunbelt's selection of available hotels and guesthouses. Some of them sounds interesting. I've read that hotel business can be owned 100% by a foreigner, but what if we are two persons? Also I'd like to know can we own the hotel building(s) or bungalows or just the business. I've understand that it is not so easy for foreigner to own buildings, and especially land. In those available businesses via Sunbelt is the rent usually for the land only? What if the keymoney is mentioned and is that normal or can it be avoided somehow?

Does anyone have experience in these matters and taking a loan for the business? I haven't done much research about the loan yet, but I guess it's not easy to get a loan from a bank in my own country, because the hotel is going to be abroad and what about Thai banks, impossible too? All information and help is welcome as we are only in the beginning of this project. Not all information is read yet so that's why lot of questions. Thank you for the answers!

[backflip]

"I've read that hotel business can be owned 100% by a foreigner, but what if we are two persons? "

Gosh, if I remember my math...that's be "200%", right?

"In those available businesses via Sunbelt is the rent usually for the land only? What if the keymoney is mentioned and is that normal or can it be avoided somehow?"

The concept of "key money" has been explained at length. Too, rather than have us guess what Sunbelt Asia has to offer, why not contact Sunbelt Asia directly?

[Chang_paarp]

As foriegner you are not allowed to own land, with certain limited exceptions.

A foriegner(/s) can own a hotel management business 100%. This does not include the property or buildings.

Key money is a fact of commercial life, it is discussed extensively here.

If you look back a couple of pages here on this forum or experement with the search facility you find a wealth of information about your intended venture.

[rishi]

As far as the two banks I've checked out (Kasikorn Bank and Bangkok Bank) they wouldn't even consider a loan to a 51% Thai owned business until that business was at least two years old ... and of course no bank (in any country) would grant a business loan unless the business had proved itself worth it ... and could prove a promising future plus a lot of security assets.

Banks in Thailand aren't easier to deal with, than banks in other countries ... Can't imagine much chance of any of them to grant a business startup loan --- particurlarly not to a 100% foreign owned business.

[Sunbelt Asia]

In those available businesses via Sunbelt is the rent usually for the land only?

Some are for the land. Some are for the land and building.

What if the keymoney is mentioned and is that normal or can it be avoided somehow?

If the landlord is getting key money now on a yearly basis, it would be very hard to persuade him to no longer to get key money.

Most businesses on acquisitions do not have any key money to be paid to the seller. If they do and it’s a one time fee it’s almost always paid by the seller.

taking a loan for the business?

Almost impossible to get a loan from a Thai bank. More likely with owner financing.

www.sunbeltasiagroup.com