Hotel, Guest House Ownership ??

[wedge95 0]

I've been giving serious consideration to moving to Thailand, I'm over 50 but would have a retirement income of just over $2000 USD and was looking at a way to supplement my retirement income. I've read about the restrictions of a foreigner working in Thailand and was wondering how so many foreigners are able to own a hotel or guesthouse.

 

Are they in a Thai Nationals name?

 

Can a foreigner own or only lease such an establishment?

 

What initial outlay of cash can be expected?

 

What is a realistic income, after expenses?

 

Are the headaches worth the trouble?

[BigDUSA 71]

Check out in the member section the topic on Sky-Top a small well run guest house. It's a cheap $14USD per night place and some guys think they're checking into the Westin/Hilton/Four Seasons and expect amenities, service to match.

 

Come and live here for a year before you even think about buying a business.

[stevoman 2]

God Denny you never miss a chance,do you??? Your response in no way remotely addressed the O.P.'s enquiry!

Edited February 29, 2008 by stevoman

[CheshireTom 1,377]

Check out in the member section the topic on Sky-Top a small well run guest house. It's a cheap $14USD per night place and some guys think they're checking into the Westin/Hilton/Four Seasons and expect amenities, service to match.

 

Come and live here for a year before you even think about buying a business.

 

BigD,

 

Why don't you just answer the guy's question? After all, weren't you at one time the "part-owner" in a Pattaya hotel? You had every opportunity to be helpful to a boardie who was asking a reasonable question but, as stevoman, quite rightly highlights, your post amounts to no more than yet more spam for your friend's business.

 

 

And, as far as I recall, you didn't spend a year living in Thailand before taking the plunge either.

 

For Wedge,

 

There is plenty of info on www.thaivisa.com. You may also wish to contact Sunbelt Asia as a starting point to get the necessary info as it applies to your own particular circumstances as well as current law (not to mention propsed future changes to the law).

[bigmick 840]

dear wedge95, id be really happy to answer all of your questions, but please wait until you get here, answering all of these will only encourage the silly answers that you dont need to read, as bigd says , come live here first, and when you get here come talk to some of us in person

[BigDUSA 71]

God Denny you never miss a chance,do you??? Your response in no way remotely addressed the O.P.'s enquiry!

 

Bullshit I did answer the OP enquiry about the part I know something about and that's all the bullshit that a few guys can lay on the owner of a guest house that cost $14USD per night.

 

 

BigD,

 

And, as far as I recall, you didn't spend a year living in Thailand before taking the plunge either.

 

That's right and I ended up losing money on the deal. I would have been better off following my own advice. Let me add one more thing about not buying a business till you live here for a year. Don't buy a condo either. Rent see what the lay of the land is and think twice and hard about any 'investment' one may consider making.

 

FWIW and IMHO Thailand has been in a political crisis for the last two years since the military coup and now with the former Prime Minister back in country along with a new government in place and very shaky military support. I wouldn't invest in this country. Oh I almost forgot the insurrection down south with the Muslims killing...................................

[CheshireTom 1,377]

BigD,

 

It would be beneficial to the OP if you could clarify ....................

 

Was your hotel in a Thai Nationals name?

 

Did you own or only lease your hotel?

 

What initial outlay of cash did you make?

 

What was your projected income, after expenses?

 

Were the headaches worth the trouble?

 

I know several guest house/apartment owners down south who make a very good living. All those gas and oil-rich guys from the likes of Haliburton, Chevron and Siemens have got to live somewhere ........... 365 days a year and no low-season

Edited February 29, 2008 by CheshireTom

[Gary 4,119]

Here's the best way to find out if you have what it takes to build a business. I have no idea who owns this place but it looks good. No investment and some potential to make a few baht. If I were not settled in and content with my life, I'd go have a look;

 

http://www.udonmap.com/classifieds/showpro....php?product=79

[torrenova 644]

The big crux comes from the lease / own issue. You can own the lease for sure but you cannot own the building so you are always at the behest of the landowner and the length of contract you can negotiate (and pay for). If you buy the building then you have to sort something out for the land ownership such as a Thai company or a Thai person. Both are not ideal to say the least.

 

Next you have to look at your clientele, the rates you can charge, occupancy, seasonality etc. Work out if you will be offering other facilities such as laundry, a restaurant, bar etc. I suspect that without the other anciliary income streams that a guest house alone cannot make money.

 

I would think of it more like a bar with rooms rather than a guest house and sort the location where people need or want a bar / restaurant but are also prepared to stay. Of course, you coule find an idyllic location but what about getting people to stay there ? Without experience, contacts and cash for advertising, you are better off with somewhere where there is significant passing trade and complementary businesses. Yes it is competition but at least you are in with a chance.

 

Finally and sorry to piss on your bonfire but with 2k USD at today's rates, you don't qualify for a retirement visa. Do you have Bt800k in the bank ?

 

What access to capital do you have and how would using capital affect your actual income ?

 

If done right, it is a fairly easy business (not easy, just relatively). You have effective free food for you and your fa,ily if you have one. You can live in to save rent costs and you have a bar to have a few drinks in and meet people who will help pass the time of day. All of this is at minimal cost and must be considered.

[wedge95 0]

Thanks for the reply. With the USD in the tank my 2K USD retirement almost meets the income requirement, but I will have between 75-100K USD in the bank so I should be ok in that regard.

 

I'd like to find something to fill my time, I think after a time hanging in bars all day will get old. I'd hope to play golf once or twice a week too.

[torrenova 644]

You don't say where you are but if you look at some of the more successful bars in Pattaya then you will often find some form of nurturing the ideal of a "local". Golf is a major force in that business model.

 

Though not a golfer, I know a bit about how they set it up having lived here for a few years and knowing the owner of one place which does rely heavily on golf.

 

If the bar (for want of a better word) is organising transport then you have people meet at your place. Not all will for sure as they will live nearer the course but holiday makers are unlikely to have their own transport. Breakfast could be part of the deal, some food after the game most certainly is and often in the guise of a free buffet, paid for by you. Of course, your relationships with the various courses may enable you to cover that cost internally.

 

So you get a group of people back to your place in the low times, the late afternoon and early evening. Your food costs should be more than offset by the drinks bought. From this it leads onto birthdays and other special occassions. Competitions can be run if you get large enough, even in conjunction with another smaller competitor. I think you get the picture.

 

That may be more then you want but think about your rooms. One guesthouse just does rooms, your guesthouse has a small restaurant, transport and golf contacts. It is easy to see which one a golfer would stay at.

 

One thing I would advise though (and I have done some work on this) is to not skimp on the bedrooms. Flat pack furniture, poor quality showers, basically doing it on the cheap will mean 3 things. One, people will not want to pay a premium price. Two, repeats will not ne as high as you want. Three, you will end up replacing that cheap furniture as it does not last. No need to go overboard but some think about your bedroom back home and make it better than that - people want that in an hotel. Better a good bathroom than a plasma TV. Go to 5* hotel websites and get a feel, then downsize.

 

The key is providing three income streams. Rooms (and you can include yours in the beginning), food and the bar. Food does not have to be an expansive menu, just some simple choices for breakfast, lunch and dinner. Your location will determine the menu.

 

As to how much to invest then how long is a piece of string ? You need some economy of scale or it doesn't work. 3 rooms is too little but perhaps 12 is too much to begin with.

 

Think about your staff multi tasking. You'll need a cleaner for the rooms but you'll aslso need someone to do the laundry unless you outsource it. A short order cook is also required as are some bar staff. Think about who can do what and what cover you have. One is to have the room maids do the laundry (including that of the customers) and potentially live in if you have room and they need a room. They can then help out in the kitchen and bar.

 

I'm a little way off doing it for myself and most likely not in Pattaya but it is certainly one of the top 5 ideas I have and have had on the drawing board for a couple of years. The key is where to pitch the investment and that differs for every building and location.