Profitable guesthouse / rental business for sale, for reasons explained further below.
Update:
Many people relocating to Thailand, especially Phuket, try to acquire a bar or restaurant business and, most of the time they fail. They pay overpriced key money to get a business they do not understand, just to realize it was a mistake later.
The first question which comes to the mind of a skilled or intelligent buyer is: “Why is this guy selling this business, if it is profitable?” Good one. Let me explain:
I have been doing business in the south of Phuket for the last 5 years, mostly in short-term and long-term rentals, in the Karon, Kata, Patong, Rawai and Chalong areas.
I prefer to do business by myself; this one is one of my oldest ones and I am running it with a partner, 50/50.
Now, I am slowly shifting to an absolutely different kind of business - laundry. By the way, if you check my other listings, you can find out we (me and my Thai wife) are already selling a franchise for our laundry business, as it is doing so well we are not able to handle it by ourselves. But that is another story, just saying as some of you have been asking about it before. You can Google it by the name EU Laundry.
So, long story short, I want to focus more on building laundry businesses and keep the rental business as a secondary one, focusing on a 3 to 5-room building, long-term only, as I do not have time to do short-term.
Now, finally, let’s get to the point:
I am selling a rental contract, lasting 2.5 more years, which, based on my experience, is more than enough. Do not trust 3+3+3 contracts being presented here. I am a practicing lawyer and I can tell you that such a contract is void. Everything beyond 3 years is based on the landlord’s goodwill and mood only. And, in most cases, much higher rent. If you can’t get your money back in 3 years and make a profit, it is better to look somewhere else. Please, not a bar, restaurant or weed shop.
The property is located next to Karon temple, a 10-minute walking distance to Karon beach, and the location has been our main selling point from the start. It consists of the main building with 12 rooms, a nice garden with a separate house with 2 apartments and a BBQ area, and as a bonus, there is a shop and a big (5m x 10m) billboard facing the main road.
The shop is rented out for the next 2.5 years for 20,000 baht a month. The billboard was rented for 12,000 baht a month for the last 2 years; the contract just finished. No brainer.
The main building contains 12 rooms on 3 floors, studio type with a fully equipped kitchenette (sink, fridge, microwave, induction plate, kettle, kitchenware and utensils, ready to use), king-size bed with bedding, closet, table and some other small amenities. Of course an en-suite toilet and shower with a water heater. Of course, well-maintained AC, cleaned every 6 months.
The separate house in the garden is bigger, has a separate bedroom and a full kitchen.
Everything was fully renovated and re-equipped 3 years ago by us. All the amenities are included in the selling price.
I am selling 2 options: Option 1 is a 50 percent share in this business. You will get a reasonable partner in the business who has been taking care of the place for the last 3.5 years and you will need to share your profit with him 50/50. The price for this is 900,000 baht. The discount to sweeten this deal was stated above - I am selling part of my business that is connected to someone else as I want to focus on something else. Option 2 is to buy 100 percent of the Company; you can do your best as you wish and can maximize profit only for yourself. The selling price is 2.7 million baht.
Now, let’s get to the numbers. We have been renting the rooms long-term, no hard work, stable income. Not depending on low or high season. With an average rent of 10,000 baht per room for a 1-year contract, the place makes 14 x 10,000 = 140,000 a month. Plus the shop and the billboard. Again, no brainer.
Here it starts to be interesting and it is the opportunity for the bravest:
Last 2 high seasons, we tried to rent some rooms short-term. Only 2 or 3 of them, as we had long-term tenants. You can do your own research on Booking, Airbnb and Agoda and you will see the same numbers we did. Not 10,000 a month. 2,000 to 5,000 a day.
So.
14 rooms, let’s take the minimal rent, 2,000 baht a night in high season (4 months), 14 rooms x 2,000 baht a night, 120 days, 80 percent occupancy, makes it 2,688,000 baht in one high season. You have 3 of them ahead on the contract. If you know how to do short-term and you are familiar with OTAs, you can make that number double and you know it.
The rent is approximately 70,000 a month. Do your math. ;-)
Feel free to contact me; I am not an agent, I am the owner of this business.
