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100 hotels on Koh Samui forced to sell up due to COVID-19 crisis

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Time to open a new Charlie's Hut

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18 hours ago, Jonny1959 said:

Back to the 90's.

Take the hotels away and plant palms.

Samui was a very beautiful island in the 80's and 90's.

Now it is only expensive and overpriced.

 

Just like the rest of the islands..... Used to be great back in the 80s and 90s, now greed has truly taken over and it's a miserable experience ,,,,,,,,  Used to go to Krabi back in the day, 150-200 bht bungalows, great stuff, overnight jumped from 200 bht to 1500 bht a night !  Nice one, had to laugh when the Tsunami washed the lot away....... karma..... 

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9 minutes ago, SupermarineS6B said:

Just like the rest of the islands..... Used to be great back in the 80s and 90s, now greed has truly taken over and it's a miserable experience ,,,,,,,,  Used to go to Krabi back in the day, 150-200 bht bungalows, great stuff, overnight jumped from 200 bht to 1500 bht a night !  Nice one, had to laugh when the Tsunami washed the lot away....... karma..... 

 

Only the privileged westerner is allowed to make money?

 

If Thai do they deserve to die? 

 

UK pound down to 10 baht soon. 

 

Karma

 

 

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I would love to see the prices of these assets for sale. 

A business that's losing money, and that has a maintenance / carry cost on the asset has a negative value. The estimation of future earnings has risk, for which a return must be compensated.. Maybe it still loses money in 2021, or even for the next few years before any recovery is in sight. 

If thats factored into actual pricing, I would be very interested in looking at smaller resorts on the east or south. 

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16 hours ago, mickymouse1 said:

Give me an example of 1 resort/ hotel that is going cheap!!! I know few but not cheap as you might think.

exactly my point.. Using pie in the sky hoped for land values, multipled by boom years best ever takings.. And factored out far into the future, appears to be the lowest prices considered by anyone. 

Land office valuation land.. Building costs discounted by age.. Before creditors foreclose.. I would be genuinely interested to look. 

Feel free to PM me any of these 'deals' mentioned. 

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16 hours ago, smedly said:

I wonder who is buying them up on the cheap

image.jpeg.f27bfc525d549bff265108ec54d144c8.jpeg + image.jpeg.a0729ba16b3fd97ac4ec9df40850840b.jpeg

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13 hours ago, Bluespunk said:

Is is as grim as the destruction wrought by mass tourism?

best comment of the thread. 

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19 hours ago, ezzra said:

Any one with cash at hand can make a killing now buying properties at rock bottom price and when things will look up, and they will, will at least double their money...

And the Chinese who started it will be the first in.

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19 hours ago, ezzra said:

Any one with cash at hand can make a killing now buying properties at rock bottom price and when things will look up, and they will, will at least double their money...

I call this kindergarden-economics.

 

If it were so clear, that within 1 - 2 years the price of the properties would at least double, do you really think that anyone would sell? Do you think that any bank would make a foreclosure and lose big amounts of money, when they just can wait 1 - 2 years an get their full amount of mortgage back?

 

The people who try to sell their hotels try to get the best price they can. Mostly there will be no match between the owner and a possible buyer.

 

And for the buyers who find the match, there are big risks connected with such a purchase, which obviously have to be considered by valuing the hotel. One of the biggest risks is that demand for hotel capacities will not come back, even not after 2 years, while the supply stays more or less the same. So the net proceeds from the ongoing business could well shrink considerably in the future compared with the good years in the past.

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18 hours ago, smedly said:

I wonder who is buying them up on the cheap

We all know the answer to that one.

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Posted (edited)
19 hours ago, Jonny1959 said:

Back to the 90's.

Take the hotels away and plant palms.

Samui was a very beautiful island in the 80's and 90's.

Now it is only expensive and overpriced.

 

My first visit was in 1991.

Yes It was superb back then.

My last visit in Lamai beach was in 2013 and I could barely recognize anything from 5 years before.

I will never go back again.

Edited by Gervais Bilodeau

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21 minutes ago, henry2109 said:

I call this kindergarden-economics.

 

If it were so clear, that within 1 - 2 years the price of the properties would at least double, do you really think that anyone would sell? Do you think that any bank would make a foreclosure and lose big amounts of money, when they just can wait 1 - 2 years an get their full amount of mortgage back?

 

The people who try to sell their hotels try to get the best price they can. Mostly there will be no match between the owner and a possible buyer.

 

And for the buyers who find the match, there are big risks connected with such a purchase, which obviously have to be considered by valuing the hotel. One of the biggest risks is that demand for hotel capacities will not come back, even not after 2 years, while the supply stays more or less the same. So the net proceeds from the ongoing business could well shrink considerably in the future compared with the good years in the past.

I agree, the banks cannot afford to lose the value on the credits granted so the Chinese can now buy hotels no to buy at a low price that the article mistakenly says but to invest their money out of China and to clean it up step, also not problems for Chinese pay the hotel prices in Thailand too high on the international hotel market, for Chinese investor on Thailand is also political welcome for China government.

 

 

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The potential Chinese buyers that will swoop in and snap up these businesses know they can make money from Chinese tourism.  The sheer weight of numbers of Chinese wanting to travel will see to that.

These middle and lower class tourists already visit Thailand. It is not a long haul like Europe. They cover some of their holiday costs by bulk buying lots of Thai food goods, (one can see them in the supermarkets filling their trolleys), which they then sell to their compatriots when they return home.

Just like other nations, there are many that will want to buy property or holiday home. Many for the same reason below.

 

These businessmen and tourists want to get their money out of China and Chinese control.

 

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19 hours ago, Trentham said:

I first went to Koh Samui in 1984. Stayed at Lamai Beach in a bungalow with a palm frond roof. 50 baht per night for 2 people and another 50 baht each for 3 meals a day. It was magic. All the food was fresh caught in the sea or grown in their own garden. If I ordered a pina colada they would scramble up a palm tree to get a fresh coconut. Beautiful beyond words.

Sounds amazing it's a shame things like that change.some beautiful islands around Thailand then they  get to commercialised and spoilt.

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