# buying a hotel in thailand?



## petepie1234

hi guys

Im peter

I have been to thailand 6 or 7 times and also train in muay thai

Anyway im only young (31) and i have afew pound coming to me(50k)

I want to know is it possible to buy a small hotel(obviously i will have to do it with a thai person and hope they dont screw me over )and live of the hotel?

I wouldnt want anywhere in bangkok or anything,just a small 4 bed hotel along the coast by the beach,is this possible guys?am i just fooling myself?
Thanks for all your replys :juggle:


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## stednick

petepie1234 said:


> hi guys
> 
> Im peter
> 
> I have been to thailand 6 or 7 times and also train in muay thai
> 
> Anyway im only young (31) and i have afew pound coming to me(50k)
> 
> I want to know is it possible to buy a small hotel(obviously i will have to do it with a thai person and hope they dont screw me over )and live of the hotel?
> 
> I wouldnt want anywhere in bangkok or anything,just a small 4 bed hotel along the coast by the beach,is this possible guys?am i just fooling myself?
> Thanks for all your replys :juggle:



Peter:

The short answer is Yes, you can buy a small hotel on the coast and live off the profits. 

To accomplish this you need to do a great deal of work and have some good luck.

Now, some devil's advocate talk. 

Do you have significant business experience in the hospitality venue? Have you ever owned a hotel, motel, restaurant or café? If yes, did you make money, break even, or fail?

Are you willing to work many long hours? How will you attract customers?

Can you; fix a toilet, install a light switch, replace a broken window, run the laundry, tend the bar, mow the lawn, clean the bathrooms, kill the bugs, pay the staff, register your business, file you taxes, deal with the police, immigration, neighbor's complaints, customer complaints ... the list goes on and on. 

Anyway, Peter, I suggest you look long and hard into the details before you invest your funds in a business venture in a foreign country. The hotel business is a highly competitive business. Unless you have a firm business plan and experience your chances of success are slim. 

So, be very careful in your decision making. Good Luck.


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## Song_Si

> small 4 bed hotel along the coast by the beach


well I'd say no

Don't think I've ever seen a 4 bed hotel for starters, smallest on our cost would be 8 chalet resorts, bought before land prices rocketed - 5 million per rai asking price not uncommon for beachfront, found one local one for sale at USD $4.6 million it has 22 rooms.

the returns on 4 rooms would never be enough - the months of low season, no tourists would see to that.

50,000 pound - 2.3m baht. 
if you want to work there yourself- 


> Minimum Capital Requirement a Company must have to support a work permit?
> In order to support a work permit an ordinary (non BOI promoted) Limited Company needs to have a minimum paid up capital of 2,000,000 THB per foreign employee.


General land prices
We've just bought a house section, based on price of 1million baht per rai (40 x 40m, less than half a football field), 19km inland.
2.3m would not buy any house on the coast here, let alone a commercial venture, and we are in a Thai tourist area, not yet taken over my foreigners (though that is starting) - more like 4m upwards for beachfront on half a rai or less.


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## cnx_bruce

good advice already ... I would say unlikely to succeed. I am guessing you have no hotel experience, no trusted Thai partner organised (ideally also with hotel experience and some capital), and four rooms is too small to make a living. Remember you need to cover all the various costs, plus your salary, plus the salary of the Thai staff you need to have to warrant the work permit for yourself. 

And its not just the work you would have to commit to, it's also all the potential worries and stresses that might and probably would arise.

I would suggest you step back and consider all your possible alternatives - for example putting your money into one or more mutual funds or similar investments. Quite possibly less risk than your hotel idea, and certainly less scope for stress. 

With all of these ideas however you will still need to commit a fair amount of time to reading, research and talking to people with relevant experience. Cut corners here at your peril.


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## stednick

Peter:

The going consensus is don't do it. As Song_Si provides 50k GBP just is not enough cash and as cnx_bruce provides, there are many safe places to put your money.

Good luck.


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## Ovidia77

I agree with the others. Having lived in Thailand for several years, I'd advise to invest your money elsewhere. 


Personally, we didn't meet anyone that didn't lose their business. I'm sure there are foreigners who can pull it off, we just didn't meet them. And it's not just the Thais doing the ripping. 

It's a tough business and the Thais don't like competition. 

That said, it's your decision. At the very least, live in Thailand for a few years before you invest, living there is very different to visiting.


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## petepie1234

Hi Guys

thanks for the heads up,but what else could i do in thailand for work?just to make a small living?,i will be bringing over a small amount of cash with me,like 30k but will need to fill my days with work and have even if its small just an income of some sort,what do you guys propose?what do you guys work as in thailand?

Thanks again

Peter


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## Ovidia77

Your options are limited as most manual jobs are legally reserved for Thais. 

You can teach English. Check out Thaivisa for more information. You could also get a diving certificate and teach diving. 

Lots of people working are off-shore workers in the oil and gas industry but I really don't know much about that. And then there are those who work for the multinationals or bigger Thai companies. It all depends on your qualifications and skills. 

A friend of ours works in logistics and went back to Europe to gain more experience so that in a few years, he can go back and get a decent job in Thailand. 

It's not a great place to make money, better to come with money, enjoy your time, have a great extended holiday. Go back home, make some more and go back. That way, you'll enjoy the place more as well.


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## stednick

petepie1234 said:


> Hi Guys
> 
> thanks for the heads up,but what else could i do in thailand for work?just to make a small living?,i will be bringing over a small amount of cash with me,like 30k but will need to fill my days with work and have even if its small just an income of some sort,what do you guys propose?what do you guys work as in thailand?
> 
> Thanks again
> 
> Peter


Peter: My ticket to gainful employment in Thailand was very specific and very specialized technical training. I was recruited. 

In my experience you need specialized talent(s) in short supply to attract an offer of employment in Thailand. As a native English speaker you could possibly pursue employment as an English as a Second Language instructor. Although, without teaching credentials and experience your monetary offers will be low. View the website ajarn.com to investigate. Teaching in Thailand is a subject covered in many threads in this forum.


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## mogo51

*hotels*

my advise is dont do it!!! Had many years experience in hotels in Australia, but was not prepared for the obstacles placed in front of me at every turn. Keep your money and put it elsewhere or be prepared to lose it. Other advice here is very sound.


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## Newforestcat

Hi

I don't mean to be rude but only wish to be honest; you won't find a townhouse or a condo in or near a coastal town in Thailand for as low as £50K. Believe me, I have been looking for some similar properties/ business opportunities. 

I am only being brutally honest because I don't want you to snooker yourself. Besides you are a dog-lover. LOL

Buying a hotel was one of my crazy husband's ideas, too. But I said no. Thankfully, he listened. His mistakes were due to his ignorance, watching too much reality programs and nostalgia (but yes, I do worship him). My husband knows next to nothing about Thailand except that his long-suffering wife, who is Thai, would deal with everything, including conversing in Thai on his behalf. He also gets stuck in the previous decade thinking that £1 is still 75 Baht not 46 Baht, has no notion of how bad inflation is in Thailand (well, anywhere) and never runs a hospitality/ catering business in his life. He thought like a holiday-maker and an overly optimistic amateur/hobbyist only seeing himself chilling out by the sea with a pint or two or mugging about on a boat. But running a guesthouse or hotel is going to take over your life, even if you could afford to have a lot of staff.

If I were you, I would spend more time working, saving in the UK and looking at obtaining more skills or career options for your move to Thailand at the same time. £50K is a lot of money but will go so fast, if you intend to invest even before you know about Thailand and most importantly Thai people. Don't trust anyone except yourself in business. Don't even think about buying a business or property in someone else's name unless you can afford to lose it! It will not be a shortcut. It will be hell on earth even if to try to liquidate and run with whatever is left! The best way to keep a good friend is to keep him/ her from involving in your business.

You should think about how to meet the visa requirements or how suitable a visa run is to you as an option. Both require money and time. You should consider if your move does not work out, having a few plans and an exit plan. 31 is young as far as many things are concerned but it is not considered that young in the UK job market, if you have to go back to find a job in the UK later, say in five years' time. 

I can't tell you what you should do as a job in Thailand as I don't know your skills. But I believe that there is a good opportunity everywhere if you look and think hard enough. But everything needs funding and a clear head! If you have a Bachelor degree, maybe try to get some qualifications to teach English but there is no guarantee that you will get a work permit easily. I think you need at least £450 or approx 18,000-20,000 Baht a month to get by (including food, modest entertainment, rent and utilities ONLY). With an emergency fund (including health fund or health insurance ) and a proper visa, you could live a decent enough life in Thailand. 

Last but not least, I would not consider having too many staff in Thailand. I prefer none or just a few low-skill employees. It is a nightmare to train them (you will see what I mean) and most importantly to keep them with you! But I never plan to be rolling in it, I only need a quiet and happy life. Oh dear, I sound old and appear such a killjoy.  But if I need a piece of advice, I need an honest one. Here you have it!


Good luck!

Dani


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## Ben666

*My Plan!*

Hi Guys,
Some worrying posts but I’m very glad I came across the thread.

I am in pretty much the same position as Peter, have around 50K and plan on buying a Lease not freehold of a guesthouse, approx 12-18 rooms out in Phuket, I have researched this and at the moment there are around 7-8 on the market in that price range.

I actually do have hotel experience, 19 odd years and currently run a large 3* hotel in the UK which hopefully will set me in good stead.

I would be creating a company to obtain the visa & work permit etc so that I don’t have to partner up, I will be the only one on the board who will be able to call a board meeting to which a company decision can be made, which of course I will not call & is my fail safe to not get screwed over, realise I need to employ 4 Thai staff but am told that a work around could possibly be done through (employing) someone at the solicitors office I use to register the company, say as sales & marketing role but depending on the guesthouse may not need to.

My basic plan is to land on a 60-90 day tourist visa, in that period I would look for a long term rental on a flat/house for around 15k Baht a month, have seen several on the market in and around that price but want to look at them first hand before signing etc.

Also within that time I will look and sit in on a few lessons at the local Thai language schools to pick one that suits me, when I choose I will sign up for 200 1 hour lessons (circa £600) which will qualify me for an education visa for 1 year and can be renewed & depending on which school will be taken care of through the school. I will have to leave the country to get it but only the once.

Within the next 3-6 months while learning a bit of Thai (realise I won’t be fluent) I will simply take in life and figure out if I actually want to stay in Thailand and if so within the following 6 months I will search for a suitable guest house lease to take on and as I will be on the ground, will ensure I have access to the books so that I can do the numbers to ensure that it will make enough net profit to take care of me etc (not a millionaire but with 6-9 months of actual living cost experience to gage it)
I would be looking for a property that has live in room but all that depends on the actual property & possible income generation from it.

If I don’t like the place after 3-6 months, I will return to the UK & get another job (hopefully) etc with my bank roll intact and think again for the future, most lost is a decent job given up and an extended holiday had.

My girlfriend will be coming also and like me will look to obtain an education visa first of all, I won’t be able to employ her and so will not be able to get her a work visa (Don’t have the cash to invest for a 2nd permit) but basic plan for her would be to take a TEFL course and she will get a teaching job, again have looked into this and a lot of the schools will take care of the visa etc, this will of course provide a separate income to the guest house.

I know this is a long old post and previous comments have covered some people’s thoughts but would appreciate anyone reading and commenting, I would especially be interested in the obstacles that Mogo51 or anyone else experienced.
Thanks
Ben


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## mogo51

hi Ben/
you have done your homework and I wish you luck. Again my only suggestion is dont do it. Pattaya is full of expats trying to break free from what you want to get into and very few of them make any money. I was like you, just wanted to earn a living for a few years.
At first it went well as expected, but then the riots in Bkk stuffed it - you cant plan for that sort of thing. 

I havent been to Phuket for more than 20 years and it is very different now than then, but I do speak to lots of expats who have been there and it is no different from Pattaya only more expensive.
50k poinds is about 75k Aussie nnd you wont get much for that sort of money, only a small gueshouse and not enough rooms to make a living in my humble view.
I see you making the same mistakes I made but in the end that is your decision. You have had some sound advice on this forum and you are to be congratulated for taking the time to research it as you have, wish I had done more before taking the leap - I lost about 40k and it could have been worse.
I dont know how old you are but even with my years of experience, I encountered totally different problems from operating a similar business in Aussie - they play a different tune in Thailand.
Only one oher problem I see - bringing a gf to Thailand is like taking coal to Newcastle, I tipped out of my 15 year marriage and have had a great time there. You do meet some great people, but plenty of arseholes in between, so again, you need to be on your game.
Having said all this, if you decide to go ahead, good luck = maybe check out Pattaya too, as you can buy better there than Phuket as I understand it.


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## petepie1234

errr think thailand was just a fairy tale,might look into going to america instaed


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## mogo51

friend of mine just purchased 1br condo Jomtien, 300m from beach, 2.3m bht, smallish but quite nice, good facilities, pool, gym, etc, fully furnished.


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## Song_Si

Ben666 said:


> I would be creating a company to obtain the visa & work permit etc so that I don’t have to partner up, I will be the only one on the board who will be able to call a board meeting to which a company decision can be made, which of course I will not call & is my fail safe to not get screwed over, realise I need to employ 4 Thai staff but am told that a work around could possibly be done through (employing) someone at the solicitors office I use to register the company, say as sales & marketing role but depending on the guesthouse may not need to.


Be very careful re company set-up
Big news in Phuket at present as per following, these investigations follow complaints and protests and a public meeting of local Thai businesspeople:



> *DBD investigates Thai firms suspected of helping foreigners set up companies illegally*
> PHUKET: 19 February 2013
> *A special investigation by the Department of Business Development (DBD) into foreign-owned businesses in Phuket has revealed links to Thai legal and accounting firms on the island that may be helping companies set themselves up illegally in Thailand.*
> 
> “We suspect that these firms may be allowing foreigners wanting to open a business to use their company address to represent the physical building of the foreigners’ business. We are also investigating whether or not the legal and accounting firms are offering their staffers’ names as nominee shareholders,” DBD Director Wutthichai Wipusanawit said in a meeting at Provincial Hall yesterday.


and



> *Probe into Phuket’s ‘foreign’ firms begins*
> 22 February 2013
> *PHUKET: Dozens of government officials will be involved in tracking down illegally formed or run companies with foreign shareholders, following a meeting yesterday (February 18) at Phuket Provincial Hall.*
> There are about 3,000 tourism- and property-related businesses in Phuket, he said, and officials will initially concentrate on these. “If the officers find that a company is formed illegally, legal action will be taken. But first a thorough check of all information must be carried out.”


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## Newforestcat

Glad to see Song_Si post. 

I was going to say something similar but with no such facts.

Besides, you need to earn a minimum amount per month ( I think 25,000-50,000 Baht depending on a few factors) to meet the work permit requirements plus the four employees' wages, plus the 1-2M Baht funds in the company. It does not make sense, IMHO. 

I would never ever try to find a law loophole to stay in a country apart from a visa run, especially one that requires investing a large sum of cash. The laws can easily be changed, especially now. 

It looks like if you can get a work permit as an English teacher or whatever, it might well be a better solution.

Thai people are generally lovely. Most people like farang expats, but there is a minority that does not feel the same, just like every country of the world. Adding the strange fear that foreigners will buy all the land secretly, I would not commit a lot of money into a property either freehold or leasehold! 

Having said all that, I think life in Thailand is more pleasant than in England most of the time especially now, speaking as an anglophile! And it is so much easier to be in Thailand if you have a modest but steady stream of income! But if you want everything by the sea, you won't get it cheap! It is a question of wether you then save up longer or change location/plan slightly!


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## Cyberia

An Australian Guest House owner in Siem Reap I talked to said it was a lot, lot less hassle to buy a business in Cambodia.


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