Guesthouses to sell in Patong

I was looking into real estate websites lately and was quite stunned by the number of hotels and guest houses on sale in the business section, almost all concentrated in Phuket. 

How come are they so many.  Are they all failing,  are the entrepreneurs unprepared, overburdened by high rents, forgetful of the low season dip, wishful thinkers, harassed by unforeseen formalities and taxes, is the competition just too fierce, something else? I would assume people investing that much money did some minimum due diligence (after all they were diligent enough to save that money in the first place), or perhaps the appeal is too strong to be reasoned.

Or is it that the tourism market in Phuket is just that huge and dynamic (I guess it can't only be that).