Airport Hotel for Sale in Amphur Thalang, Phuket Airport, Phuket, Thailand

Phuket Airport Hotel - Unique & Profitable Business

Listing updated October 2010.

A unique transit hotel that caters almost exclusively to single-night customers from the adjacent Phuket International Airport, has become available for acquisition because the Thai owner is unable to cope with the high level of business that the hotel attracts. (The occupancy rate is far higher than other hotels on the island, due to the transit nature of hotel guests).

Not only is the hotel just 600 metres from the airport terminal, it is also a similar distance from beautiful Nai Yang beach where it is safe to swim 365 days a year. There are many restaurants and bars at the beach, whilst local shopping within 100 meters of the hotel includes a minimart, ATM machines, car and motorbike rental, internet cafe etc.

Constructed in 2006 from the ground up to provide access for both able-bodied and wheelchair guests, the resort consists of five air-conditioned bungalows providing 10 double rooms, a swimming pool, a laundry and staff building, private parking, and a reception building complete with restaurant and bar, all set in a private tropical garden immediately bordering the international airport.

Just three years old, the hotel is in excellent condition, and cost 10,000,000 baht ($350,000) to build. Agreements are in place with international, national and local travel companies, and many bookings are secured via the company’s website, which is ranked number one on the Google search engine, (due to the unique and recognizable domain name).

The purchaser of this business will be given free support and advice concerning the operation/procedures for the website and online booking systems.

The majority of customers book their stay via pre-paid, online booking, but there is a daily flow of walk-in customers from the nearby airport. The resort is open 24 hours a day and many guests spend the first night and last night of their holiday at this transit hotel, as it is located close to the airport but away from flight paths; guests never have to suffer from any intrusive aircraft noise.

The hotel is popular with foreign and Thai customers. Every room has a super fast and free wi-fi connection, along with all mod cons, and the hotel is often fully booked even in low season, due to its unique location at the airport.

The first year of trade (2006/7) was very successful, and net profits of 4,800,000 baht ($160,000) were earned. Similar profits were achieved in 2007/8 and profits for the past 12 months are just over 3,500,000 baht ($116,000), in spite of the downturn in tourist numbers to Phuket.

Whilst disruptions at the airport are a major headache for other hotels in Phuket, this transit resort becomes fully booked within minutes of any major flight delays. A three phase electricity supply covers not only this area, but the airport as well, so any power cuts are immediately resolved. The hotel also has its own water well, which has never run dry, while six septic tanks povide more than adequate waste disposal. A 70 channel cable TV system with many foreign language channels is provided in each guest room.

Sitting on one rai (1,600 square metres) of land that is planted with mature trees and bushes, the hotel enjoys the benefits of a long and renewal land lease that still has 10 years remaining, with monthly land rental payments of 65,000 baht (about $2,200) being applicable. Ancillary monthly bills are low, typically $350 for electricity, $25 for internet, $50 for cable TV and $1,000 for the 4 Thai staff (excellent cook, room maid, driver/handyman and restaurant staff). All staff are happy to remain in employment, although it is very easy to locate new staff from the nearby village.

Under Thai law, a foreigner can lease land in his/her name only, without any requirement to involve a Thai partner. The land lease is registered at the local government office and restricts the landlord from making any changes to the lease contract for the whole lease period.

Additionally, although Thai law normally requires a business to have a majority of Thai shareholders, the business of hotel management is a sector where foreigners are allowed to have a majority or total share-holding.

If the purchaser is a US citizen or company, then the Thai-USA Amity Treaty allows for citizens/companies from the US to own the business without any Thai partners.

Finally, under Thai law, a Thai business with majority Thai shareholding (3 shareholders in total are needed), can still be controlled by the minority foreign shareholding through the use of beneficial voting rights.

Therefore, Phuket Airport hotel is an ideal, profitable and enjoyable business which can be legally and safely owned by a foreigner.

Recently, Phuket Airport was granted permission to expand, including the building of a new terminal building for international arrivals. This increase in arrivals can only benefit this unique and profitable business.