How to salvage a failing business?

[Robert24]

@bwpage3, your post keeps on saying 'your hotel'. It is not my hotel - please try reading my OP.

Who comes to Phuket to want to stay at the airport and not the beach?

Er.. for the same reason that people stay near Suwanabhumi, (or Heathrow or JFK or... or...)

They are transit hotels - Duh!!!

it's a fair question though. Suvarnabhumi, Heathrow, JFK are major international hubs where people really transit. Nobody comes to Phuket for a transit. People go to Phuket on a holiday. They may transit on the way in Bangkok but not in Phuket. My question would be who are your target customers for your hotel near the airport.

[puukao]

people always say "it could be double or triple if...if....if...". Well, Buddha makes is very clear to not hope, only reality. "IF" will ruin many things......like i should quit my job today "IF" i win the lottery. IF i work 100-hours every week i can create the next AMZN, so might as well buy a big house now...

sorry, this businesses can't be salvaged....run away, take the loss.

[bwpage3]

@bwpage3, your post keeps on saying 'your hotel'. It is not my hotel - please try reading my OP.

Who comes to Phuket to want to stay at the airport and not the beach?

Er.. for the same reason that people stay near Suwanabhumi, (or Heathrow or JFK or... or...)

They are transit hotels - Duh!!!

Transit to where?

If they are already in Phuket at a resort hotel on the beach, then why do they need a transit hotel out near the airport?

The beach resort hotels seem to do a fine job getting me back to the airport when I need to leave.

The beach is not far away (travel time) from the Phuket airport that any sane person would need to transit overnight near the airport

Transit is for when you have trouble getting to the airport, not for when it is an easy ride from a luxury hotel

[bwpage3]

@bwpage3, your post keeps on saying 'your hotel'. It is not my hotel - please try reading my OP.

Who comes to Phuket to want to stay at the airport and not the beach?

Er.. for the same reason that people stay near Suwanabhumi, (or Heathrow or JFK or... or...)

They are transit hotels - Duh!!

You have the same kind of "hotel" right next door to the other two that you built for your 2 ex-wives

You built them all, maybe the reason the business is failing is your business plan had zero chance of success

Combine that with your ex-wife's expenditures and it is double doomed

Do you do any market surveys exactly how many people transit each year from right next to the Phuket Airport?

Maybe not enough to support (3) of your buildings

I seem to remember the scenery around their was dodgy at best???

You were the master planner, I don't think someone with any sense at all would try to rescue this

Post the photo

[thaiduncankk]

Egotistical troll.

I have big money. Kee maak.

Edited October 23, 2015 by thaiduncankk

[simon43]

Nobody comes to Phuket for a transit. People go to Phuket on a holiday. They may transit on the way in Bangkok but not in Phuket.

Oh dear, go and do your homework

I have built 4 transit (one-night stay) hotels at Phuket Airport since 2005. With the exception of my ex's hotel, the other 3 are profitable and each of them is being expanded with more guest rooms to meet the demand.

This is not some new fad business idea of mine. It is because of people like you who totally fail to recognise the 'through-traffic' at Phuket Airport that I have little competition from other hotels in this area.

The number of tourists flying in/out of the airport continues to increase year on year. Many years ago, most of these tourists stayed in Phuket. Now they use the airport as a 'transit' point to travel to other destinations, such as Samui (the runway there is too short for longhaul flights, so travellers fly into Phuket instead), Ao Nang/Krabi (the runway is long, but has few longhaul flights), Khao Lak, Khao Sok etc.

Many Chinese travellers who stay in expensive, 5-star hotels, spend their first and last night at my hotels because they do not want to pay for staying just a few hours in the 5-star hotel, before their late-night flights.

I could explain more, but I'm quite happy if you think there is no profit in a transit hotel

quote]

I seem to remember the scenery around their was dodgy at best???

[/quote

Now you must be a troll! Only a fool would make that sort of comment.

[thaiduncankk]

Well that's a good and honest post. And it says a lot about how certain Thai women behave.

I have a close friend who has the same problem with an ex who won't let go of a business which has gone from profit to 85 million debt.

Somehow they think they are God's gift to business but have no understanding of balance sheets or simple ins and outs.

There's also the huge question of loss of face. That's a major problem here in Thailand and whatever solution that you come to, think of one that saves her face and you then might come to some agreement.

On the other hand salvage what you need and keep well away. Because another aspect of these women is that they are spiteful and stupid.

Best of luck to you.

85 million debt ?

More TV bullshit.

[flyingdoc]

I am not sure what actual advice you are seeking?

[simon43]

I am not sure what actual advice you are seeking?

The clue is in my original post between:

My salvage plan would be:

blah blah blah

AND

Now, does anyone have any better suggestions?

I think her hotel business is completely beyond rescue (bills vastly exceed profit); so a plan to 'salvage' as much as possible from the business should be implemented. I proposed a plan of action in my OP, but ThaiVisa members may be able to suggest a better salvage plan that salvages more than what I propose.

Edited October 25, 2015 by simon43

[gk10002000]

I am sure the loan amounts won't be re-negotiated down, but can the payments be reduced for a while allowing her to get more caught up, similar to a chapter 11 bankruptcy which structrues things and give one relief? I believe most chapter 11 individuals end up needing full chapter 7 bankruptcies. The reason is because unless the people change their habits, or their business models,they just go right back to doing badly whatever it is that got them in trouble in the first place. In my experience, a woman that seems to have gotten set up with other's help just doesn't have what is needed to sort things out. Money management is crucial and Having a cash flow in, tends to be too tempting not to spend too quickly. I would walk away if possible unless you are on the hook for some liabilities. Save your mental and physical energy

[simon43]

In my experience, a woman that seems to have gotten set up with other's help just doesn't have what is needed to sort things out... I would walk away if possible unless you are on the hook for some liabilities.

She paid me to build her hotel. However, she did not earn the money - it was her 50% share of the divorce settlement on our previous hotel a year or so before.

As for liabilities, I have absolutely no financial involvement in her business and have been divorced from here for yonks, remarried a different Thai lady, divorced again and am now a monk

[h90]

the figures look good!

copy/paste

60,000 baht - mortgage from the bank to buy the land on which the hotel is located

10,000 baht - electricity bill each month

20,000 baht - staff (family) salaries

7,000 baht - green-plated taxi that is needed to enter Phuket Airport to pick up guests. This old Toyota Wish is required for both her hotel and mine - the green plate is very difficult to obtain nowadays and we share the vehicle. (This 7,000 baht is because the ex borrowed 200,000 baht using the car as security, in order to pay the deposit on a new, personal car - I only found out about this debt today)

The business income right now is about 60,000 baht/month in low season and 120,000 baht in high season. Under good management, it could be doubled, if not trebled, with minimum increase in business expenses.

100.000 fix costs and say 80.000 (just average) income with good management 160K. or possible 240K

[simon43]

with good management

Those are the 3 important words!

[Old Croc]

I remember your posts of many years ago where you sought advice on how to deal with a wife with "medical" problems and her strange family. I presume this is the same lady. You were frustrated, a little desperate, and looking for solutions to that situation.

Fast forward many years, a couple more wives and several more hotels and it seems you are still very involved in that ladies' life despite your protestations that you have no financial, or other, interest in her or the business you initially provided for her.

Several posters have reasonably asked why are you getting involved now. I don't think it's because you live nearby, or think you may be able to snatch up a bargain from the ruins, I think you just crave the drama.

You must be the only "monk" who has had a facelift and started a thread on Thaivisa to showcase it!

[simon43]

...or the business you initially provided for her.

If you are talking about her hotel, please note that I provided that for her against payment by her for the construction by me of the business.

If her business fails, it can only benefit my own hotel because competition for guests is reduced.

As for drama, I don't agree. For me, there is no drama. I stay in my profitable hotel and offer business advice to my ex which she chooses to ignore. I offer that advice because she is the mother of one of my children and if her business fails, then it will probably affect the child, (in terms of schooling location etc).

[HenryB]

so that you do not get hit by any flak when the proverbial hits the fan

I do not intend any flak to hit me. We are not talking about a recent ex. I divorced her years ago, (and remarried and divorced again!). I have never had any share or interest in her land or business

Run Leave Thailand It seems to me the Loan Sharks will go after you

Wake up you have money I they will get it