Dreams of Your Own Hotel in the Paradise

Have you ever dreamed of having your own hotel in the tropics, among palm trees, the sea and a leisurely tourist life? You will be interested to know that many people dream about this goal, and there are several reasons for this. The local real estate market is full of hot deals, but you always need to know all the features of properties in Thailand before buying them. Endless beaches, pristine nature, interesting places to visit, fresh air filled with the scent of flowers are a true paradise for real estate hunters. Let’s figure out how to make such a dream come true in Thailand.

Owning a hotel in a paradise location is a dream for many aspiring entrepreneurs in the hospitality industry. The idyllic setting, the potential for providing extraordinary guest experiences, and the opportunity to create a harmonious retreat in a breathtaking environment are just some of the elements that make this dream so compelling.

The Significance of Location

The location of a hotel in paradise is paramount. Whether it’s a pristine beach, a mountaintop, or a tranquil island, the chosen location must offer an exceptional escape from the hustle and bustle of everyday life. The natural surroundings should be awe-inspiring, beckoning guests to immerse themselves in the beauty of their surroundings. The allure of the location not only attracts potential guests but also sets the tone for the overall guest experience.

Understanding Your Market and Target Demographic

Understanding the market and target demographic is crucial for offering an exceptional experience. Whether it’s catering to honeymooners seeking seclusion, families yearning for adventure, or wellness enthusiasts in search of holistic experiences, a deep knowledge of the market is vital for tailoring the hotel’s offerings to meet the specific desires of the target demographic.

Sustainable and Eco-friendly Practices

With sustainable and eco-friendly practices becoming a priority within the hospitality industry, implementing environmentally conscious initiatives is essential. From energy-efficient design and operations to minimizing single-use plastics and supporting local conservation efforts, sustainable practices contribute to the preservation of the natural beauty that makes the location so special.

Creating an Extraordinary Guest Experience

Creating an extraordinary guest experience requires a deep commitment to service excellence. From personalized concierge services to curated experiences that showcase the best of the destination, every element should exude warmth, authenticity, and luxury. The staff, carefully selected and trained, play a pivotal role in ensuring that guests feel not only welcomed but truly at home in the paradise you have created.

Marketing and Storytelling

Marketing a hotel in paradise requires a focus on storytelling. Capturing the essence of the destination through compelling narratives and captivating visuals is essential for attracting potential guests. Utilizing media, immersive website content, and strategic partnerships with travel influencers and agencies can help to showcase the allure of the property and its exceptional location, building anticipation and excitement among prospective visitors.

Building a hotel from scratch

This is the longest and most complicated process. First, you need to find a plot of land in a tourist area with developed infrastructure, close to the sea. There are fewer and fewer good land plots in Phuket, because they are quite attractive and in demand. As a result, large developers prefer to buy them. A plot of land in Thailand is measured by RAI. 1 RAI = 1,600 sq. m (16 acres). The average price for RAI in a tourist area 3-5 km from the sea starts from 300,000 dollars. 1 RAI within walking distance from the sea costs about 500,000 dollars. And 16 acres of land on the 1st line can cost from 2 million to 3 million dollars.

The purchase of land is only possible for a legal entity registered in Thailand. To open a company, you need to find 2 Thai partners who will own 51% of the shares. However, if there is a business project involving large investments, it is possible to open a company that will be 100% owned by foreigners.

Now let’s talk about the construction itself. There are several professional construction companies in Phuket that are ready to do the work efficiently and on time. As practice shows, the first construction experience is always associated with unforeseen difficulties and costs. You need to take into account these risks.

The average cost of building a 3-4-star hotel is approximately $100,000 per room. The total area and infrastructure are included in this price.

The most important thing for the successful running of any business is a team. Phuket is small, and the professional staff here is worth its weight in gold. You can invite specialists from other countries, but according to the law, there must be 4 Thais for each foreign employee. Every foreigner will need to apply for a business visa and a work permit, and these are additional and considerable expenses.

Buying a hotel in Thailand

If you don’t want to build a hotel from scratch, you can buy a ready-made one. You will need to conduct a full audit: check ownership, encumbrances and financial statements. Remember that no business owner will get rid of a profitable asset. You will have to create your own team and monitor the activities of the hotel at first until the system starts working.

You also need to register a company with 2 Thai partners. You will need to register the hotel and land for your company. In addition, you can purchase an asset together with an existing legal entity or purchase shares of the company the hotel is registered to.

A small 3* hotel 3-5 km from the sea with 30 rooms can cost from 3 million dollars. A 4* hotel within walking distance from the beach with 50 rooms can cost from 8 million dollars. A 5* hotel on the 1st line is rarely found.

Renting a hotel in Thailand

If your budget is limited or you are not ready for capital investments, you can rent a hotel for a certain number of years and manage it. These are small 3-4* hotels. To do this, you also need to have a company registered in Thailand. The average cost of renting a 3* hotel for 60 rooms 500 meters from the sea is 20,000-25,000 dollars.

Purchasing hotel real estate in Thailand

If you are not a professional hotelier, do not have a large budget, are not ready to devote all your time to this business, or you do not have Thai partners to open a company, there is a way out. Large construction companies, having land in good locations near the sea, build apartment complexes with hotel infrastructure and give them to the management of hotel chains. Hoteliers are happy to make such deals because they do not need to look for land and build themselves.

Moreover, all apartments in the complexes are for sale and have owners with whom the hotel signs a management agreement. Under this document, you give your apartment to the hotel as part of the rental program and receive your stable income of 7-12% per year, while not participating in the process.

Summing up

Building a hotel from scratch is suitable for professional hoteliers who understand all the nuances of business, are able to calculate and manage risks, and are also ready to devote all their time to this project.
Buying a hotel is ideal for professional hoteliers who are not ready to engage in construction, but are confident that they will be able to enter the project, restructure and raise a loss-making business.
Renting a hotel in Thailand is ideal for investors and entrepreneurs with a limited budget who are ready to participate in the process and competently conduct hotel activities.
Purchasing hotel real estate is intended for investors without experience in the hotel business. As a rule, they are not ready to understand the intricacies, open a company and spend time on the process.

Conclusion

In conclusion, establishing a hotel in paradise is a dream that embodies the desire to create a haven where guests can escape, unwind, and be enthralled by the beauty of their surroundings. It demands a deep understanding of the destination and its potential guests, a commitment to sustainable and exceptional practices, a dedication to service excellence, and a passion for storytelling. Bringing this dream to fruition requires patience, resilience, and an unwavering commitment to creating an unforgettable experience in the midst of paradise.