Airport hotel for sale - 3.5MB profit this year!

**Simon43** · 04-09-2009, 08:28 PM

Profitable hotel even in the low season!

Our airport hotel is a very successful venture. But the Thai owner has a longterm illness and wishes to sell the business as a going concern.

The hotel primarily caters to the sector of transit customers who will either depart from the nearby international airport early the next day, or will arrive in Phuket on late evening flights. As a result, the hotel is always busy and generated a profit of more than 3.5 million baht ($100,000 US) in the past 12 months. (Accounts available, all tax paid up to date, proof of revenue from travel websites since 2006 available)

The hotel consists of 10 3-star bungalow guestrooms, swimming pool, restaurant, kitchen, staff quarters, car-parking, private garden, massage sala, broadband wifi internet and 70-channel international channel cable TV.

The hotel is located on 1,600 square meters of land which is leased on a longterm basis. There are 12 years left on the current lease which is securely registered at the government land office. The lease can also be renewed at the end of the term by negotiation with the landlord.

The business is highly ranked on TripAdvisor and receives many good revenues.

Due to the owner's illness, the business is available for purchase as an ongoing concern. The purchase price is 10 million Thai baht, (about $300,000 US), or for 7.5 million baht downpayment and thereafter 250,000 baht payable in 12 monthly installments. Alternatively, the owners will consider a payment of 5 million Thai baht and transfer of suitable land/property that is owned by the purchasers.

Seriously interested? Drop me a PM with your email address for more details.

Simon

**Butterfly** · 04-09-2009, 09:20 PM

Could you post pics of the rooms ? outside and inside ?

is it 3.5m profit or revenues ? what are the actual annual revenues ?

**Fuzzy Bob** · 04-09-2009, 09:21 PM

Are non Thais able to buy the hotel and run it as a business?

**Simon43** · 05-09-2009, 09:10 PM

OK - first the photos, have a look at Phuket Airport Hotel and also www.phuketairporthotel.com/photos

The 3.5 million is profit! The gross was about 4.7 million baht over the past 12 months, down slightly from the previous 12 months due to the tourism/politcal issues etc. I have records of all the payments from our website and online travel companies, plus our accountant has details of tax paid etc.

This is actually a rather unique situation that has been covered in great detail over the past few years on a ThaiVisa thread.

I built Phuket Airport Hotel a few years ago as a business for me and my Thai wife. It was and continues to be a very good little business because of the location (600 meters to the airport terminal and to Naiyang Beach).

But, as detailed on the TV thread, my Thai wife went mad, literally! She took yaba a few years ago and went completely mad. I had to put her in the nuthouse a few times, all very expensive!!

Luckily, I moved away from the hotel early this year when I got a new software job near Bangkok. But I help my ex with all the bookings, bills and internet stuff because she simply cannot do it, (some days she is ok and the next day she is not lucid at all, as mad as a blue monkey up a coconut tree

9 months ago we were offered 10 million baht by a Belgian guy who wanted to buy the business, but my ex refused cos she thought that she could manage the business without me. Now, after a few months of very hard work, she admits that she simply cannot do the work

So she has asked me to help her sell the business cos she wants to buy a managable business, such as a small restaurant. (Actually, the business is very easy to run because I wrote software so that all bookings are automatically added to a website page and a text message sent to your phone when a new booking is received. But it is too much for my ex, especially without having me on site).

The hotel is a totally unique business, with pre-booked customers and walk-in customers every day. Unlike the Patong hotels, it caters for a niche market of overnight customers, but a very large niche market! Also, the airport has now got funds to expand, so the future for Phuket Airport hotel is very good!!

My email address is PhuketAirportHotel[at]yahoo.com if you need to ask any questions. The situation with my ex is very well documented on ThaiVisa over the past few years, as well as being well-known to the Phuket Tourist Police who have had to deal with her on several occasions

Simon

PS to Fuzzybob - the answer is yes! Firstly, the land on which the hotel is located is on a longterm rent, and foreigners can sign that rental contract in their own name without any Thai partner.

Secondly, managing a hotel is one of the areas of business in Thailand where foreigners are allowed to work without any Thai partners. Also, if you are an American citizen, then you can register your Thai ltd company as an Amity company, with 100% foreign shareholders, (majority need to be US citizens).

**chitown** · 05-09-2009, 10:49 PM

Are you flexible with the terms and open to creative financing if you could get more than what you are asking?

**dirtydog** · 05-09-2009, 10:52 PM

Originally Posted by Simon43

Also, if you are an American citizen, then you can register your Thai ltd company as an Amity company, with 100% foreign shareholders, (majority need to be US citizens).

I believe that option is no longer available.

**MustavaMond** · 06-09-2009, 09:30 AM

Originally Posted by dirtydog

Originally Posted by Simon43

Also, if you are an American citizen, then you can register your Thai ltd company as an Amity company, with 100% foreign shareholders, (majority need to be US citizens).

I believe that option is no longer available.

Actually it is, I spoke to the US Commercial Services at US Embassy just last week about Amity..

Simon,
I'm not clear on the lease, there are 12 years left, so you don't own the building?

It seems a lot of leases will be up soon in Phuket, I don't understand why buying anything that has a lease that will expire in a few years is a good idea?
IN the case of this hotel maybe the money can be made back by that time..

I know of a huge villa w 7 rai on Phuket going for 50 million that has 7 years left on the lease, in my eyes that makes it practically worthless.
The landlord is going to throw the new tenant out or make them pay big time ..and he'll be totally within his rights.

**Butterfly** · 06-09-2009, 10:37 AM

what is the annual rent of the land ?

**dirtydog** · 06-09-2009, 01:26 PM

Originally Posted by MustavaMond

Actually it is, I spoke to the US Commercial Services at US Embassy just last week about Amity..

I wouldn't use the US embassy for business advice if I was you, I am of the understanding that amity companies cannot be set up as of 2007, obviously if you have an amity company that was set up before then then there is no problem.
https://teakdoor.com/williams-legal-s...relations.html (US-Thai Treaty of Amity and Economic Relations)

**Simon43** · 06-09-2009, 02:42 PM

Hi Chitown, the answer has to be no to creative financing and flexible terms! My ex was already offered 10 million baht several months ago by a French guy (I had several meetings with him re this), but the terms he offered (30% cash and the balance over staggered payments) was not acceptable to her.

MustavaMond, the lease term was 15 years and now there are 12 years left. The lease contract states specifically that the buildings belong to the lessee, and can be demolished when the lease expires in 12 years. However, the landlord would not want that, so is happy to negotiate a new lease or profit share in 12 years time.

When I entered into this venture, renting the land was absolutely the right thing to do! I calculated that me and my wife would reap a profit of at least 3 million baht per year. So that's 45 million baht profit over 15 years. My investment was about 10 million baht to construct the buildings etc.

Unfortunately, when I made all my calculations, I overlooked one small matter, and that was to consider the situation if my wife went mad.....

The monthly land rental is 55,000 baht, and that expense, (as well as other expenses such as electricity and salary bills etc) have already been included in the profit calculations. (The gross income over the past year was 4.7 million baht).

If my ex was incarerated in jail or the nuthouse, and the key was thrown away, then I would be back running that hotel the next day

She cannot manage the business alone and those who have tried to manage it with her over the past few months have all left, being unable to put up with her!

For the medical fraternity here, she has severe Bipolar II illness, which makes her .. er.. a little bit unreliable and unstable. She is generally ok most days, but phrases like 'you're a fcuking nutter' tends to set her off....

So bottom line. She wants to sell the business as a going concern, with 12 years left on a renewable lease. I will assist any purchaser with all the internet/booking/billing training and ongoing assistance. My ex will relocate to a peaceful Issan village where she can torment the elderly farang retirees...

Simon

**MustavaMond** · 07-09-2009, 09:06 AM

Originally Posted by dirtydog

Originally Posted by MustavaMond

Actually it is, I spoke to the US Commercial Services at US Embassy just last week about Amity..

I wouldn't use the US embassy for business advice if I was you, I am of the understanding that amity companies cannot be set up as of 2007, obviously if you have an amity company that was set up before then then there is no problem.
https://teakdoor.com/williams-legal-s...relations.html (US-Thai Treaty of Amity and Economic Relations)

DD Sorry, but I disagree, your linked info is wrong .
US Commercial Services is an office set up by US Embassy to assist Americans doing business.

Also the BOI still has Amity Treaty as current , and the 4 or 5 lawyers, both Thai and foreign partners- I queried in the last weeks including one of the most oft recommended private attorneys in Phuket.

Simon,
Sorry to hear of your troubles, the business is sound too bad your partner isn't.

Best of luck, I'm sure you'll get a buyer by late season .

HOw is it in Bangkok? Lots more fun I bet.

**Simon43** · 07-09-2009, 02:52 PM

Hi Mustavamond, very apt comment! (sound business, unsound partner!!).

There were many enquiries early this years when my ex thought about selling the business, and one serious offer that she turned down because - at that time - she felt that she could manage the business alone, (ie without my assistance). But although the occupancy rate is high, the added workload to look after those customers is really too much for her and she has accepted my well-meaning advice which is to sell up, buy a house for herself and a small business that is within her means to manage.

BKK and surrounds are fine - but I do miss Phuket!

Simon

**Seekingasylum** · 07-09-2009, 05:14 PM

Is it possible for you to get power of attorney, either solely or in association with some other reliable person?

I should imagine any serious contender witting to the caprice of the current owner would not be interested in any negotiations unless she was specifically excluded from the deal. What would be the point otherwise?

**Simon43** · 07-09-2009, 08:49 PM

Thegent - I don't understand your question. There is nothing to negotiate

The asking price is fixed (unless you have some land or property to barter...). No PoA is possible with my ex because she does not have a continuous mental illness, (she is bipolar and thus varies between lucid and not lucid). She legally owns the business and has asked me to help her to sell it.

Simon

**Evilbaz** · 13-09-2009, 10:45 AM

How will your wife remember she has sold the business in her "non-lucid" moments?
I am well aware of Bipolar disorder - this is a serious question!

**MustavaMond** · 13-09-2009, 02:27 PM

I must correct you Simon is no longer married , he states " Ex"

RE Lunar Ex ;
Simon, see if you can get her take something that can be bought at Supercheap,
hyperiforte aka St John's Wort. 400 b/30 ( Import from that awful Blackmore's company ...) It needs no prescription in Thailand or US ( yet ) but does in Germany

Really really works on chemical imbalance type problems

It's perfectly safe , won't hurt her and just might help but it takes 4-6 weeks to start having effect, which is just no more crazy, obsessive behavior . ( works well w quitting cigs )

**Simon43** · 13-09-2009, 05:01 PM

Hi Evilbaz, a valid question (maybe...). I think the sight of all the money she has received will remind her

Simon

**flying away** · 26-01-2010, 04:13 PM

Just to say best of luck Simon. My cousin stayed there end October (he had an early morning flight) and it's very handy for the airport. Okay it's not the Hilton by any means but good potential I reckon.

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