Sunbelt Asia Weekly Column
3 August 2018
International travelers, mainly from Europe and North America are driving tourism to secondary destinations such as Chiang Rai, Koh Lipe, and Trang. Statistics from Expedia show that nearly 90 percent of people using their site to book secondary destinations came from international travelers. Trat showed itself to be the most popular destination followed by Koh Lipe, Chiang Rai came in third but also showed the largest growth with bookings jumping 60 percent year on year. Mae Hong Son and Trang came in fourth and fifth and also showed strong year on year growth. Overall bookings to these destinations have grown 30 percent year on year.
After Chinese arrivals dropped in July and with further drops expected in August after the Phuket boat disaster, the Thai government is implementing measures to restore confidence in the safety and convenience of travel in Thailand. The government plans on implementing special Immigration lanes for Chinese travelers at five airports, Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, and Hat Yai staffed with officials with Chinese language proficiency. The government is also mulling multiple entry visas for Chinese visitors, they currently must obtain a two-month visa, in a bid to woo frequent travelers. A road show to Phuket showing implemented safety measures is planned for Chinese media to restore confidence for travelers. Tourism numbers showed overall growth for the first six months of the year, reaching 19.48 million, a 12.6 percent year on year rise.
The Thai National Shippers’ Council (TNSC) predicted export growth will grow between 8 and 9 percent this year, after June exports grew in almost every market and a smaller-than-expected impact from recent trade barriers. The growth in June extended a 16-month growth streak for Thai exports, reaching over US$21.7 billion, an 8.2 percent increase from the same month last year. Growth was reported in almost all markets including the US which saw record expansion. The only exception was the Middle East. The TNSC warns of risk factors including US trade barriers, exchange rate volatility, the current price slump in some agricultural products like rubber, and conflicts in the Middle East that could send oil prices higher.
The Bank of Thailand has forecast GDP growth will continue to grow in the second quarter and is confident that GDP growth in the second quarter will be higher than that of the first quarter which jumped to a five-year high of 4.8 percent year-on-year. Growth in the second quarter of 2018 has been driven by thriving exports, tourism, and private consumption. The Government Savings Bank has forecast that this year’s GDP growth will be between 4.6 percent and 4.9 percent.
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Well-known hotel in top Chaweng location on Samui
Located in one of the top spots in Chaweng near Soi Green Mango on Koh Samui, this hotel has 28 rooms with four different room types all fitted out with TVs. Catering to all kinds of travelers, the hotel also has 8 hostel rooms with bunk beds and 1 dorm room. Fully fitted out with an elevator, generator, water tanks, storerooms, emergency stair exit, and reception the hotel does have a hotel license. Fully renovated in 2017 the sale includes all equipment, fixtures, and fittings as well as the Thai company and the hotel license. This allows the new owner to walk in, take over the premises with a new name and run it right from the get go.
The owners are selling as they are focusing on their franchise business and are looking to reduce operations on Samui.
The hotel has a lease contract through 2031 with the annual rental set for each period
2016-2019 – 2,400,000 per year for 3 ( rent paid in advance on signing contract )
2019-2022 – 2,568,000 per yer paid in yearly installments
2022-2025 – 2,747,760 per year paid in yearly installments
2025-2028 – 2,940,103 per year paid in yearly installments
2028-2031 – 3,145,910 per year paid in yearly installments
ASKING PRICE: 20 Million Baht / 645,000 USD
(BKK15841)
Long-running bar & grill in great location on Samui
In the heart of Chaweng Beach on the popular tourist island of Koh Samui, this bar and grill has been in business for ten years and is open 7 days a week. The new owner will need to change the name as the current owner is keeping the franchise name but all equipment, fixtures and fittings will remain. Only the accounting staff computers and personal items would be removed.
There are two lease contracts (and two landlords) for the premises with monthly rent currently set for the next 12 years:
2018 – 2021 – 584,531 baht / month
2021 – 2024 – 642,984 baht / month
2024 – 2027 – 707,282 baht / month
2027 – 2030 – 778,009 baht / month
The owners are selling as they are focusing on their franchise business and need to reduce their operations on Samui. The new owner would walk into a turn-key ready business in one of the best locations on the island.
ASKING PRICE: 15 Million Baht / USD 480,300 USD
(BKK15840)
Pristine resort in Cha-am with 25 rai of land
Set in the beautiful district of Cha-Am and just a short drive from the beach, this business offers a unique opportunity for a buyer interested in getting into the resort and development business in a tropical paradise and owning 25 rai of chanote title land as well. There are 9 beautifully furnished villas, each offering two rooms for rent as resort style accommodation. The resort can cater for up to 40 people at a time. The 9 villas offer beautiful views of the mountains, lake and rice paddies near by. With such a large area, there is plenty of room to grow this business, either with more resort rooms or more villas. The resort has a large pool set in beautifully landscaped gardens and a lovely lake.
There are 15 employees with a total monthly payroll of 260,000 baht. Sales have grown continuously in the first four years of business as the place becomes more well known, reaching 24 million baht in 2017 with a gross profit in excess of 10 million baht.
Twenty five rai of freehold land is included in the sale, along with a 240sqm meter clubhouse, dining and drinking area with 40 covers, and 14 hardwood salas, as well as staff quarters for 4 people.
The owner is looking to sell due to personal reasons
ASKING PRICE: 100 million baht – negotiable
(BKK15829)
Well-known marine business in one of Asia’s largest marinas
Take advantage of the growing number of sailing tourists to Thailand with this business located in one of Asia’s largest marinas with full facilities for yachts and boats. The business provides marine services supported and backed by the worldwide leader in sail making. Offering standing sail storage, canvas and trimming work, service and sail repair as well as sales of brand name sails, this business caters to a popular and growing market in Asia.
The business has a great potential for growth with a well trained staff and easy operating system. The business has protected product lines and established accounts. The loyal clientele create a lot of sales and referrals. This is a great opportunity for someone who loves the sailing lifestyle and can make money out of it.
The business is located in Chonburi with a 108 sqm upstairs sail loft for inventory, canvas work, and retail sales. Merchandising and marketing would boost this company further. The business has been operating for 6 years and there are four full time employees. The company has no real competition at this quality level. The owner is looking to sell as he is ready to “sail away”.
ASKING PRICE: 3.9 million baht
(BKK15831)
Fully licensed English school in Greater Bangkok metro province
A leading English school is available in Samut Sakhon, in the greater metropolitan Bangkok provinces. With a top curriculum, fully equipped school and a high enrollment of students on an annual fee basis, the school is quite successful and a leader in the area with a waiting list for students wishing to enroll. The school has an active presence on social media that has helped to promote its brand, communicate with prospective clients and public relations.
Located in a 160sqm building, there is a reception area, two large classrooms, an office, a library, a back kitchen, an outside kitchen and yard as well a bathroom on each floor. The building has ample parking in front as well as a car park on the side. Rent on the premises is 15,500 baht a month.
The school has experienced consistent growth year to year with a profit of 1,065,801 baht in its first year. Sales last year reached 2,660,766 baht with a profit 2,160,964 baht. There is one full time and one part time employee with total wages at 12.620 baht a month. There is a detailed outline available for potential buyers once a standard confidentiality agreement has been completed.
The owner is moving overseas and so is selling the business
ASKING PRICE: 6.5 million baht
(BKK15779)
Popular American franchise in busy western Bangkok mall
Located in a busy mall in a popular Western suburb of Bangkok this American franchise is well-known but the owner is forced to sell as he has no time to manage and grow the business. A new owner could easily grow sales and profits with this popular franchise.
The 18 sqm restaurant is set in the food court of a busy mall and has a rent of 17 percent of gross profit. The business sold over 4.1 million baht in its first year and could easily grow with a dedicated owner/manager. There are three full time employees with a monthly payroll of 29,300 baht. The business has made a profit of around 20,000 baht a month.
The franchise fee and deposit with the suppliers is not included in the sale price.
ASKING PRICE; 2.5 million baht
(BKK15818)
Design studio seeks investors for international growth
A top-quality design studio is seeking investors to help grow the company. Specializing in the design of lighting, acoustics, audio-visual, IT and security systems, this design consultancy has clients in Bangkok, South East Asia and the Middle East including several large projects including a contract valued at over 40 million baht. The owner of the business is seeking either a partner to grow the company or can sell outright to the right buyer.
The business has offices in central Bangkok with a monthly rent of 100,000 baht for the 100sqm space and has a highly qualified staff of 20 full time employees with a total monthly payroll of 1.2 million baht a month. The company has been in business for six years and has earned a good reputation for high quality lighting and AV designs, as well as security systems. The company is interested in opening new markets and offering new services.
There are three options for investment for joint venture:
ASKING PRICE: 25% shares for 400,000 USD
49% shares for 800,000 USD
51% shares for 1,200,000 USD
(BKK15814)
Silom area hostel
Located in a hip neighborhood area about 10 minutes walk from the BTS, this Silom area hostel has 14 rooms including private rooms with en suite bathroom, rooms with shared bathrooms and a dorm style room that holds 4. The convenient location and classic atmosphere has earned the business good reviews on booking sites and Trip Advisor. The business was established in 2015 and has contracts with key accommodation booking sites including Agoda, Booking.com, and Hostel World.
The hostel has seen 1.8 million in sales with an average of 840,000 baht in revenues. The monthly rent is only 49,500 baht a month for the five floors, there is one full time employee with a salary of 15,000 baht a month. The owner invested 3.5 million in setting up the hostel. He is looking to move to a new business and so is seeking a sale.
ASKING PRICE: 2.3 million baht
(BKK15836)
