Investing in any property, such as a hotel for sale in a popular tourist destination like Phuket, Thailand sounds like a good decision. However, it takes a lot of consideration. Here are some things to think about before investing in a hotel:
Is there a demand?
Post-COVID, Thailand’s tourism has quickly picked up, and leading tourist spots like Phuket are once again experiencing a boom in their tourist industry. This island in the south of Thailand welcomes millions of tourists each year. As this trend keeps growing, the demand for hotel accommodations will increase.
What are the available assets?
As an investor, you must have some working knowledge of the hospitality industry and what it takes to operate a hotel establishment in Phuket. You need to decide which hotel classification you will purchase, as there are hotel categories according to “chain scale” – Economy or Budget, Midscale, Upper Midscale, Upscale, Upper Upscale, and Luxury. Each scale will also have a different investment requirement depending on its room size range, facilities, service level and staffing, among other operational factors.
Should I work with a specialist?
Buying a hotel for sale in Phuket, whether in the planning stage, under construction, or already existing, needs more than a firm grasp on the top-line financials. Investors need to analyze and understand other factors, from the profitability potential to the physical condition of the actual asset itself.
The best way to ensure you make a sound investment is to consult professionals specializing in hotel acquisition in Thailand. A reputable company can provide essential guidance and valuable advice on hotel property management to ensure that your investment will bear fruit.
