Here’s something that you don’t often come across – a brand new hotel for rent. This would suit a hands on owner who has some skill and knowledge of online marketing and knows what budget conscious visitors to the island need.
This 40 room hotel was completed in early 2016. The well-known local owner has numerous businesses here and hasn’t been able to devote as much time to this project as he hoped. So he’d like to rent it out.
The property hasn’t been marketed properly yet but is in a good location within easy walking distance of both Kai Bae and Klong Prao beaches. The island’s largest coffeeshop is opposite and there are shops, bars and restaurants within 2-3 minutes walk.
It has been built as a budget hotel. One that is low maintenance and easy to run with just a handful of staff.
There isn’t a restaurant, so staff are only required for front desk and cleaning.
The owner can supply staff to help run the hotel and can also provide assistance with paying taxes or setting up a company if the lessee needs this.
The air-conditioned, ensuite rooms currently rent out for around 1,000 – 1,500 Baht / night. Discounts are given for long stays of a week or more. No real effort is put into selling trips, tours and transport. There is a huge opportunity to make very good commissions on this with 40 guest rooms.
There are also two shop units that are rented out ( very cheaply ) one is a minimart and the other a massage shop.
Note: The pool and two lower floors are completed and furnished. However, the upper floor isn’t completed. The structural work has been done but it needs fitting out. The owner will use the money from the initial rental period to complete the work for whoever leases the property. This also give the lessee the opportunity to have some say in the decor for the rooms on the top floor.
Rental: Initial 2 year contract = 2,500,000 Baht / year + 500,000 Baht security deposit = 5,500,000 Baht
Further rental periods can be agreed with the owner in advance. Rental would increase 20% every 2 years as the business develops and becomes more profitable.
Any negotiations would be done in person – as the owner doesn’t use email etc. But he is happy to meet potential buyers who visit Koh Chang.