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  1. #26
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    Looking forward to the read.

  2. #27
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    Quote Originally Posted by Simon43
    The solution is to install plastic septic tanks which will contain the solid black water waste, and which will need to be emptied about once per year. The liquid black water is then piped from the septic tank into a soakaway area, which could either be a vertical dry well, or could be a horizontal leach field.
    what's wrong with flashing all this into the sea like everyone else ?

  3. #28
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    Quote Originally Posted by Simon43
    Despite those problems, my previous hotel was very profitable, as is my guest house in Ao Nang now, and as is the guesthouse that she owns near to the airport. So it sure sounds like some sour grapes being aired.
    Whats your guest house called in Ao Nang mate ? is it near Wanna,s place ? I have stayed there a few time s

  4. #29
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    what's wrong with flashing all this into the sea like everyone else ?
    Because 1km of plastic pipe between toilet and beach works out quite expensive

    [at]nigelandjan - it is called Krabi Hostel, on the main street. Nothing special, just a 9-room guesthouse.

    Simon

  5. #30
    Have you got any cheese Thetyim's Avatar
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    Those occupancy rates are incredible.
    I think Simon has found a niche market that is very profitable.
    There are only a handful of airports in Thailand busy enough to to do this.
    Once again it comes down to location, location and location.

    Best of luck and keep the pics coming

  6. #31
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    [at]Thetyim, this is indeed a niche market, and most people that I speak to about this business completely fail to distinguish between a 'holiday' hotel and a transit hotel.

    There are typically 30,000 passengers per day who pass through the airport. I need to fill 10 guest rooms. So I need 10/30,000x100 = 0.033% of those passengers to stay at my hotel/mini-resort.

    I looked at doing the same concept some years ago at both Swampy and Siem Reap, but never had the money/time to pursue these ideas. I still think that a 'cosy' hotel right next to Swampy would do ok - land can still be rented at a low price.

    Simon

  7. #32
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    so what is the initial capital requirement for such a project ? I am still a bit suspicious about your profit claims though,

    the transit angle is a good point, and yes it's not really a resort, but more like a road motel like we see often in the US

  8. #33
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    Quote Originally Posted by Simon43
    Land size = 1/3 rai (about 550 square metres)
    Quote Originally Posted by Simon43
    Land size = 1/2 rai (about 800 square metres)
    My house is on 1/3 of a rai, and it has only a small yard, and no back yard save for a sala and a nice porch. This is very very small. 3 rai make one acre, so you do the math.

    200 Tarung wah is also very very small. What kind of a resort do you plan to build on land that is equivalent in size to a small to medium detached house plot?

  9. #34
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    [at]butterfly - yes it's more like a motel, rather than a holiday resort. I use the term 'mini-resort' only to indicate that the project has a garden, swimming pool etc, as opposed to being just a shop-house.

    The initial capital outlay is surprisingly low, since I'm leasing the land, not buying it. For example, the City Resort monthly rental starts at 20,000 baht, rising by 8% every 3 years. When the land lease is registered at the land office, there is a 1% land tax due on the total lease amount over the lease period ==> about 40,000 baht.

    I'm using 8 construction guys/women from Issan who worked last time for me. Since they are all somewhere related to my ex (inbreeding etc!), they consider these 2 projects as family projects and will charge a reduced rate for their work. They are quite competent at the structural aspects, but complete bollox at doing nice finishing touches, - so I need to keep a close eye on them when we are in the decoration phase.

    The structural metalwork for the roof, rebar etc is supplied by a Phuket company which I used previously. They provide extended credit, only requiring 50% payment when supplying the materials, and then receiving the balance after the project is complete, open and earning a profit.

    Simon

  10. #35
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    [at]aging_one, yes the land plots are small, and quite sufficient for the purpose. My plans provide for 10 guest rooms, manager's bedroom, small office and shop, kitchen, restaurant, staff bedroom, store room, small pool, small garden, car-parking, water tower, laundry room - all built as a single storey.

    Bear in mind that both these projects are transit hotels, so guests do not expect, (and would not pay the premium) to have a spacious, 4-5 star room and hotel facilities.

    Think 'Yotel' (YOtel - Wikipedia, the free encyclopedia) or Tune Hotels (Tune Hotels - Wikipedia, the free encyclopedia) and you won't go far wrong!

    Simon

  11. #36
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    Quote Originally Posted by Simon43 View Post
    [at]butterfly - yes it's more like a motel, rather than a holiday resort. I use the term 'mini-resort' only to indicate that the project has a garden, swimming pool etc, as opposed to being just a shop-house.

    The initial capital outlay is surprisingly low, since I'm leasing the land, not buying it. For example, the City Resort monthly rental starts at 20,000 baht, rising by 8% every 3 years. When the land lease is registered at the land office, there is a 1% land tax due on the total lease amount over the lease period ==> about 40,000 baht.

    I'm using 8 construction guys/women from Issan who worked last time for me. Since they are all somewhere related to my ex (inbreeding etc!), they consider these 2 projects as family projects and will charge a reduced rate for their work. They are quite competent at the structural aspects, but complete bollox at doing nice finishing touches, - so I need to keep a close eye on them when we are in the decoration phase.

    The structural metalwork for the roof, rebar etc is supplied by a Phuket company which I used previously. They provide extended credit, only requiring 50% payment when supplying the materials, and then receiving the balance after the project is complete, open and earning a profit.

    Simon
    so how much are we talking for building this ? 10m THB ? 5m ?

  12. #37
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    Good thread, simon. Thanks for this. I'll be following for sure.

  13. #38
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    should be good, bring it on

  14. #39
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    so what about the other resort (not near the airport)? what sort of occupancy will that get?

  15. #40
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    Thanks for starting this thread Simon, I'm really looking forward to reading about how you get on.

    Good luck and keep us all posted.

  16. #41
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    [at]DrAndy, both projects can be considered as airport hotels. The Nature Resort is within 1km of the airport, only about 100 metres further away than my old resort. But the style of each project is different, in line with their immediate environment.

    So I'll market the Nature Resort as a relaxing 'gem' set in wonderous natural and unspoilt surroundings etc etc (where families and their kids can tap a REAL rubber tree) blah blah (more marketing speil...) - whilst being located just a stone's throw (Olympic thrower) of the international airport and cosmopolitan Nai Yang Beach (that means there is a choice of hooker...)

    Well, you get the idea maybe

    [at]Butterfly - more like 3 million baht each, maybe less, I'm surprising myself everyday at how cheap the materials and labour are when there is no middleman and when I can deal in Thai direct with suppliers, - makes me realise how much I was ripped off last time.

    I have a materials/labour/admin spreadsheet that estimates the overall costs, but I'm keeping that a secret for the moment.

    Sorry, no new photos until I'm back in Phuket on Monday. I think the well diggers will be starting work, so I'll get some photos

    Simon

    Simon

  17. #42
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    If it is successful I will open one at Swampy.. Would need to be right next to the car park though.

  18. #43
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    Quote Originally Posted by rawlins View Post
    If it is successful I will open one at Swampy.. Would need to be right next to the car park though.
    There is already one there I think its called Novatel. I just flew for a couple of weeks and asked themissus to book us into there for the night as I was late getting in and its too far to drive home and dangerous at night. Their cheapest rate was over 4000. A couple of weeks ago there was an article in the Bangkok post about how it was going broke and they didn't know why. When i told this to themissus her response was. "fcuking idiots who do they think is going to pay that much just for a room". She ereckoned that the only people who would pay that is someone like me who gets re-imbursed by the company for the expenses. Then after all that we didn't stay there as she found something else not that far away for 550 for the night.

    So I reckon that Simon has got it right keep it simple, keep it clean, keep it cheap, have close to a huge market for your services etc. etc. Simon I congratulate you on finding such a great business idea hope this too works out for you. Just one question, when you sold your previous 'resort" didn't they insist you don't open in opposition close by?

  19. #44
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    ^ Are you talking about the 4 or 5 star at NOVOTEL at the airport or a small thingy really called Novatel ?

    At Don Muang, the AMARI was a gold mine, high prices for Thailand, but excellent service, they had as well a 3 hours or 5 hours stay offer, was good for a rest after long flight... Not sure the place is still open today, the day the airport was shifted to Suvha, it became a ghost Hotel at a rate the management never expected that fast and sharp.

  20. #45
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    Quote Originally Posted by Simon43
    Bear in mind that both these projects are transit hotels, so guests do not expect, (and would not pay the premium) to have a spacious, 4-5 star room and hotel facilities.
    I can,t make my mind up whether this is for real or not ,,,,,sorry excuse my cynicysm ,,,, Simon you seem well versed on everything your posting the reallity is mate I can and would stay in a 5 star hotel 1 km from Phuket airport for 2.200bht and my guess is others would to rather than paying 3000 bht to stay in a very basic accom with few facilities .

    Having said that I hope it is for real as I am looking forward to the build pics and hope it all adds up for you in the end
    I'm proud of my 38" waist , also proud I have never done drugs

  21. #46
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    Quote Originally Posted by Fondles
    You built a "mini" resort, got burnt by the then wife (now ex) and now your going to build 2 more (1 for you 1 for her)................ What could possibly go wrong, your on a winner there for sure.
    Quote Originally Posted by English Noodles
    Good god, Simon. I do believe you have finally lost your sanity.
    Ditto...

    But, good luck.

    BTW, I think she might have you shot this time... Get out of Phuket!

  22. #47
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    [at]nigelandjan, I hear what you are saying, but the reality is that people are queuing up to stay in a clean and basic hotel close to that airport - I know because that is what I have been successfully providing for the past 6 years

    For many people, paying 1,200 baht in low season or 2,500 baht in high season for a hotel in Phuket is considered very good value. That is the going rate at all the 2-3 star hotels close to the airport or Nai Yang beach.

    Let's put it another way. If you need to fly out from the airport at 6.45am (to Bali), would you rather spend (half) the night in your Patong hotel, then get up at 3.00am (no chance of breakfast), and go by 1,000 baht taxi to the airport? Or would you prefer to spend your last night in Phuket in a hotel close to the airport, get up at 5.00am, have a hot breakfast and be dropped free of charge at the terminal?

    Or the other way round - you fly in to the airport from Chiang Mai at 00.50 in the middle of the night, tired and wanting your bed. Would you prefer to find an expensive taxi, endure the 1 hour trip to Patong, go to bed around 02.30am? Or would you prefer to take a free 2 minute taxi ride to your airport hotel, be able to swim in the all-night pool, get a hot meal, still have time to visit the beach bars using the free shuttle - and then awake refreshed for your onward journey at a civilised hour??

    If you prefer to stay in a 5-star hotel near to the airport, then take your pick of the Indigo Pearl or -- er.. that is it. About 10,000 baht starting rate per night.

    I'm sure many, many visitors to Phuket have no need to use my style of hotel/mini-resort. I also know from 6 years of running these types of business that at least 10 people do want to stay

    And no - there is no non-compete clause from the new owners of my old resort. I would not have sold out if there were such a condition.

    [at]Bettyboo, happily my ex realized some time ago that her own current guesthouse business (and future mini-resort) work much better when she doesn't try to kill me and allows me to manage it - it gets an 8.6 'fabulous' rating on Booking.com

    http://www.booking.com/hotel/th/phuk...thouse.en.html

    Simon

  23. #48
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    Simon, we have no doubt about your business sense.

    We doubt your sanity and life decisions... Phuket + crazy (ex)wife + money = death.

    Sorry to be blunt, and I personally wish you all the best. But, do no little alarm bells ring in your head?

  24. #49
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    [at]Bettyboo, It's more a case of ex-crazy, ex-wife. Time passes quickly, she has got older, calmed down and has a new hubby for several years already. All is serene and happy in my family circle. I spend my evenings playing my khaen (badly) and learning Chinese. Others might consider me one short of a full pack, but I'm quite happy with my life.

    I cannot change the past, but there is no reason to let it destroy one's future.

    Simon

  25. #50
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    ^ well, good luck then. Good to hear you're happy.

    You have gone through some tough times, I hope they don't come back in any measure. Bali is nice this time of year... Isn't Hua Hin safer than Phuket? Krabi is a nice place with, so it has been said, a good governor.
    How do I post these pictures???

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