Sunbelt Asia Weekly Column
15 February 2019
Thailand climbed up the 2018 World Economic Forum global competitiveness index 4.0 rankings to 38th out of 140 nations, up 2 slots from the previous year. The Index 4.0 measures national competitiveness — defined as the set of institutions, policies and factors that determine the level of productivity — and captures determinants of long-term economic growth. Thailand came in 14th in the financial system and 18th in market size Thailand continues to improve with its ongoing changes easing regulations and red tape but needs to improve in four areas to boost competitiveness; economic institution development and property rights protection and law enforcement; quality improvement of manufacturing and services; education development; and innovation development.
According to AirBnB Bangkok was the second most popular destination for Chinese tourists during the Chinese New Year holiday period. Thai AirBnB hosts saw 44,000 guests, a 50 percent jump year on year, netting 186 million baht. Globally AirBnB saw a 100 percent rise in guest arrivals from China during the period. Chinese millennials make up the vast majority of those booking through AirBnB with 80 percent born in the 1980s and 1990s. Around 60 percent booked for three or more people.
The Treasury Department is ready to launch a new land appraisal system that will be used to compute land and building tax. The change in prices of land and buildings after the 2018 changes in the land appraisal price system was a contributing factor in the new system. Normally the changes are announced every four years but the tax will change the way the Treasury Department appraises land prices by replacing block areas with land parcels to make evaluation of property tax fairer. First time home owners of homes valued less than 50 million baht will be exempt and land and buildings used for residences with appraisal prices of up to 50 million baht will be taxed at a rate of 0.02%, those valued at 50-75 million baht will be taxed at 0.03%, values of 75-100 million baht will be taxed at 0.05% and for 100 million baht and above at 0.1%. Those who own only the house and not the land will be taxed only on the value of their home over 10 million baht.
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Cafe near beach in popular beach resort – includes land
Located in the fast developing beach town of Khao Takiab, only 7km from Hua Hin, this lovely café is only a few minutes walk from many major four and five star hotels. Included in the sale price is chanote titled property and the business as well as all fixtures, fittings and equipment. If you have always wanted to live near the beach and run your own business, then this is a fantastic opportunity.
The restaurant has been open since 2005 and is fully equipped with all necessary restaurant and bar equipment including a kegerator. There are three floors with the top floor a private apartment that could be used by the owner or rented out. There is plenty of space for diners and a new garden area that is leased at 50,000 baht a year was recently added. The café is beautifully decorated with hand-painted murals from a well-known Thai artist, sourced brick, and a gorgeous European meets Asia aesthetic.
The owners will include all supplier contacts so the new owner can just walk in and take over. In the high season there are 8 full time staff and in the low season 6. Monthly wages during the high season are around 80,000 baht, sales during the high season average on 30,000 baht a day. The owner is selling the business as they are ready for a new challenge after building up this restaurant and bar.
ASKING PRICE 16.5 million baht includes land
Chaweng Hotel in top location on Samui
In one of the top locations 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
ASKING PRICE: Update new asking price 18 million baht.
TAT licensed Kanchanburi travel agency
This long established Kanchanaburi travel agency handles inbound tours to the popular province. Holding the valuable TAT license the business is turnkey for the new owner. The sale includes the shophouse with the business. The building is 320 sqm and the buyer will be owning a chanote title property.
Last year’s sales reached 4.5 million baht with a net profit of 1.04 million baht. There are six employees with experience in the business with a total monthly payroll of 80,000 baht. There are several part time tour guides the company can hire freelance as needed.
The owner is now retiring and so wishes to sell the business
ASKING PRICE 11.8 million baht
New restaurant in emergency sale in Bangkok
The owner of this popular and trendy new restaurant is forced to relocate to another country and Is selling for less than his investment costs after being in business for a year and a half. The business has a lot of followers on social media and has proved to be very popular. With numerous writeups in local online media and healthy Trip Advisor reviews this restaurant and bar is open from 11 am to 11 pm daily.
In addition to the 210 sqm venue, there is also a new branch in Onnut that is included in the sale. The smaller branch at Onnut brings in 5,000 baht a day in sales while the Sukhumvit main restaurant sees one million baht in sales each month.
Profit from the main restaurant averages around 100,000 baht a month. There are 12 full time and 2 part time employees with a total monthly payroll of 230,000 baht. Rent on the main restaurant is on a 3 year renewal and is 300,000 baht a month.
The owner invested more than 6 million baht, the sales price includes all fixtures, fittings, and equipment in both locations. The lease deposit is not included.
ASKING PRICE: 3.5 million baht
Popular one of a kind party bus great for events
Interested in event organization, love to have a good time and meet new people? This may be the business for you. This one of a kind party bus is now available! This is only the second owner of this amazing bus, it has been lovingly cared for and maintained so the new owner can walk (or drive!) into an already established business that can be set up anywhere.
This top of the line mobile entertainment and luxury vehicle was imported from the US and comes fully equipped and modified inside as a luxurious club set up. The party bus has a DJ booth with premium Pioneer console, VIP seating, Laser LED, dance poles, 2 LED televisions and 8 small displays, digital light controllers, a minibar, and even a private VIP area. This bus is equipped to go anywhere as it has its own toilet and bathroom. The bus can hold 30 people in air-conditioned comfort and is going strong with about 7-10 bookings per month at a cost of around only 15,000 baht per trip. Sales in 2018 reached 1.9 million baht. This could easily grow with a dedicated owner seeking out new markets. There are two employees with a total monthly payroll of 30,000 baht. With no rent, the costs to run are low.
The entire set up including vehicle and equipment, is valued at 2.5 million baht. The owner is selling as he is looking to move into another area of business. This is a great opportunity for a unique business.
ASKING PRICE: 2 million baht
Sukhumvit restaurant in great location
This Sukhumvit restaurant is in a great location and offers Middle Eastern food and seafood in a new, fully equipped kitchen. The business opened last year and has seen sales reach 18 million with profits of 1.8 million baht.
There are 16 full time staff with monthly wages of 400,000 baht. Rent on this 264sqm top location is 600,000 baht and the business has parking, a rarity in this part of Bangkok. The new owner can take over the current concept or institute their own in this busy touristic location.
The owner invested 18 million baht in setting up the restaurant but has too many other businesses that take up his time and so is selling this business.
ASKING PRICE: 14 million baht
Chic Thonglor hostel
A chic and modern hostel with five dorm rooms and two VIP bedrooms with en suite bathrooms is now available in the popular Thong Lor neighborhood. The business also has a bar and restaurant on the ground floor and has a total of 41 beds and has earned reviews on Trip Advisor and booking sites.
The hostel has a three year lease and a monthly rent of 84,000 baht. Sales reach around 2.5 million baht a year with profits at about half a million. There are five staff members with a total monthly payroll of 40,000 baht. The owner invested more than 9 million baht in fitting out the building but is looking to sell quickly as he has another business to work on.
ASKING PRICE 3.5 million baht UP date new asking price
Web-hosting & domain registrar with top well-known companies in client list
This long-running web-hosting and domain registrar also offers cloud services and apps. The business has a large database of clients including many well-known companies. Clients include top hotels, restaurants, insurance companies and banks. This is a great opportunity to enter a well-established tech business.
There are 11 full time dedicated and experienced employees with a total monthly payroll of 400,000 baht. Located in a prime central Bangkok location rent on the premises is 120,000 baht for 145 sqm.
Sales in 2017 topped 14.6 million baht, earnings over 5.5 million. Assets are valued at over 4.65 million baht. The owner is seeking new opportunities and so seeks a sale of this well-known business.
ASKING PRICE 10 million baht