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Northern Railway

Northern Railway Project For the Future Sustainable Economy

InvestMaN is back with another interesting news to share with our readers. Recently, the State Railway of Thailand has revealed details of the 2 upcoming projects for the development of the Denchai – Chiang Rai – Chiang Khong Railway and the Ban Phai – Maha Sarakham – Roi Et – Mukdahan – Nakhon Phanom Railway. Large group of people in a variety of areas are expecting to benefit after this train project is complete, considering the massive size of the development plan. InvestMaN sees this news as a very promising story which might interest the general audience, especially people residing in the north of Thailand. Today we are going to dive into the details on one of the two projects first, which is the Denchai – Chiang Rai – Chiang Khong Railway. Background Den Chai – Chiang Rai – Chiang Khong Railway is one of the projects of the State Railway of Thailand. It is one of the two extensions of the Northern Railway. Originally, the project was scheduled to be built in 2017 but was postponed in 2021. After official approval was passed on, the Ministry of Transport has urged the State Railway of Thailand to launch and open bidding auction for contractor by 2021 as well as begin the expropriation (eminent domain) process in acquiring the necessary land where constructions are to take place, with the goal to open for service by 2028.   Project details Double-track type railway The overall route is a combination of ground level and elevated railway Connecting between Den Chai – Chiang Rai – Chiang Khong, with total distance of 323 kilometers Construction investment identified at approximately 72,920 million baht The construction is divided into 3 contracts – -1st Contract : Den Chai – Ngao, a distance of 103 kilometers, value at 26,599 million baht -2nd Contract : Ngao – Chiang Rai, a distance of 132 kilometers, value at 26,913 million baht -3rd Contract : Chiang Rai – Chiang Khong, with a distance of 87 kilometers, value at 19,406 million baht -* Each contract has a construction period of not more than 72 months (6 years) after the land needed for construction has been delivered by the state. At present, the project is in the middle of the auction or e-bidding process of procuring contractors for each contract. Announcement of the winners of the bid is scheduled on July 9, 2021. Impact The project’s main objective is to improve the logistics of northern transportation as well as support the construction of Chiang Khong Logistic Center which will connect the North-South Economic Corridor trade from Thailand to Laos, Myanmar, Vietnam and Southern China. Help drive trade between the border and the special economic zone in Chiang Rai Province which the government is attempting to stimulate.  Support the hospitality and tourism industry in the northern region with the availability of trains for both domestic and foreign tourists. Indirect impacts also include the price of land around or in the vicinity of the upcoming train stations, which are likely to increase more or less.         This project is considered to be very good news for the people of the north. It has been a long time since the region has seen a project of this caliber, in line with the strategic route, “R3A” for economic transport of goods that came from China through Laos channels to connect with Thailand’s Chiang Khong area. Let’s also hope that it will help stimulate the tourism industry and the overall economy when this ongoing COVID crisis is well and truly behind us. In addition, this also presents opportunities for real estate investors looking to invest in land development in the next 5 years, in which the train is expected to be in operation.          Anyway, before going forward with the public project’s construction of this magnitude, an in-depth study of the project feasibility or due diligence must be performed in order to ensure the intended outcome, a possible impact on the environmental aspect. These studies include an analysis of the project location and site selection. Prospec Appraisal is happy to provide valuation services and consultations for land appraisal or even business valuation for owners. Moreover, we also offer additional service on project feasibility study and site selection. Credit source: Thansettakij Credit picture: Wikipedia

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The 3rd Wave Covid and the Changing in Home Purchasing Behavior

Our readers may recall our previous articles on: Changes in the Residential Property Market Today, InvestMan is back with another story to update you on the changes in home consumer behavior after this recently third wave of COVID. We previously discussed changes in buyers’ interest in residential properties towards single-detached houses and townhouses, which offer more living and functional space to meet the needs of people adjusts their lives during this New Normal era where “Work From Home” is not an option but a must. This new found trend is the completed opposite of 2 years ago where people flocked to buy condominiums in the middle of the city for convenient commuting to work. This ongoing third wave of COVID is by far the worst one yet for Thailand. This only reassures the new purchasing trend of residential property which are more than likely to remain this way for a while. News source, Bangkok Biz, has reported the statistics of second-hand home searches results through the website, Terrabkk.com, disclosed by Terra Media & Consulting Co., Ltd. The numbers still confirm that: The search traffic for single-detached homes and townhomes increased by 24% and 14% respectively, a complete opposite trend when compared to condominiums which have seen a 5% drop in search. Housing property values of 3-7 million baht is becoming popular among people who are interested in buying a single house, as it received 47% more attention, while the townhomes that received the 53% increasing attention, ranges at 2-3 million baht. Another talking point discovered from the analysis of this datas is the hot location which is gaining a lot of interest. At the moment, the most eye-catching residential area is the Petchkasem – Phutthamonthon area. This comes with no surprise considering that Covid has forced people to rethink their neighborhoods, moving to a far less concentrated area seems like a very good idea where housing is much more affordable compared to the crowded Bangkok communities. The availability of the MRT and BTS transit only made the area even more viable. Real estate development groups such as Pruksa Co., Ltd. have also pointed out to the new sales strategy in order to accommodate this COVID era, as consumers use digital channels to search and buy a home. As a result, these development companies have increasingly focused on online sales channels, putting much more effort into online advertisements. However, with the overall poor economic recession since the COVID outbreak, the purchasing decisions become much more difficult and usually take longer times for potential buyers. Prospec Appraisal is here to provide consultant and appraisal services for land, houses and all types of property. People who are planning on moving to new places better suit the New Normal era, valuation of assets is important and should not be overlooked before buying or selling property. Credit to news and information sources: Bangkokbiznews

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The Orange line

The Orange line, intersecting the Gray line at Wat Praram Kao Station. The new connection point of Eastern Bangkok to the city center.

InvestMan is back again with another analysis on land around upcoming train stations. This time, it is the Wat Praram Kao Station, an intersection point of the two train lines; orange line, from the Cultural Center to Minburi and the gray line, from the northern part of Watcharaphon – Thonglor. Let’s get to know more about this junction. The corner of Praditmanutham Road which intersects with Ratchadaphisek Road and Chaturathit Road is a connection point leading into the city. At present, there are office buildings mixing with residential condominiums at large. In addition to this, the area is getting more popular in terms of casual and entertainment venues such as cafes, restaurants and other nightlife establishments. Transportation Bus route  Bus line r26e, from Chakri Naruebodin Medical Institute – Phamaceutical Organisation Center 137 (Po.) MRT from Cultural Center – Ramkhamhaeng University 168 (Po.) Battlefield Monument – Siam Park 171 (Po.) Bang Khun Thian – Prawet Land Department 517 (Po.) Morchit 2 – Techno Ladkrabang  Main routes and expressways The intersection of Rama 9 and Praditmanutham Road is a big junction which connects various transport routes and networks. There is still room for development and expansion of the ‘Park and Ride’ facility.  There is access point for enter and exit the Sri Rat Expressway, (expressway level 2) – Exit point connecting Ramkhamhaeng Road, Srinakarin Road and the motorway no. 7 – Enter point, Sathorn, Bangna, Dao Khanong Chalong Rat Expressway (Ramintra – Atnarong Expressway or Expressway No. 3)  Praditmanutham Road is a road running along the Chalong Rat Expressway. It is one of the main roads connecting the city to the northeastern suburbs of Bangkok.  Rama 9 Road is a road starting from the MCOT – Ratchadaphisek Road intersecting with Praditmanutham – Ramkhamhaeng Srinakarin.   Chaturathit Road is a road with a distance of about 4 kilometers. The route starts from Ratchaprarop Intersection and ends at the merger with Rama 9 Road. It is a secondary road that supports traffic congestion from the main road. Nearby attractions of the station Rama 9 Kanchanaphisek Temple, distance from the station – 1.2 km. Pattana Medical Center Clinic, distance from the station – 1.5 km. Piyavej Hospital, distance from the station – 1.6 km. Show DC Department Store, distance from station – 2.3 km. Rama 9 Hospital, distance from the station – 2.3 km. Central Rama 9 Department Store, distance from the station – 3.5 km. Fortune Town Shopping Center, distance from the station – 3.5 km. Growth of offering price in the neighborhood Condominium – stable From surveying the area, it was found that there are still a stable amount of new condominiums. Some projects delayed the opening of sales due to the ongoing covid pandemic. There are less number of walk-in potential customers. There are approximately 3,300 new condominium units in the area, and about 1,200 of them have already been sold. As a result, there is still a considerable amount remaining to be liquidated after the pandemic.  From the market price of condominiums in 2017, the appraisal was at 70,000 baht/sqm.  From the survey of the current condominium’s offering price near the station, the average selling price is around 82,000 baht/sqm, a slight adjustment. It remains to be seen how the house purchasing trend after the Covid will unfold.  Even though the market transaction is not active at the moment, there are already signs of large mix-use projects, due to various soil adjustments awaiting developments after COVID. The area around Rama 9-Manutham is definitely another hot location to keep an eye on.   Land prices from year 2019 has increase up to the present The majority of land for sale around the station are large plots in characteristic. The big real estate development companies have already started acquiring these land, and await to be developed into condominium projects once the Covid situation eases out. In the meantime, these land is temporarily utilised for agricultural purposes in order to reduce the tax burden. The appraisal information during the year 2017-2018 of land located into the alley connecting to Rama 9 Road was estimated at 85,000 baht up to no more than 100,000 baht per square wa. The current price of land located into the street is offered for sale at approximately 200,000 to 350,000 baht per square wa. The price has been adjusted continuously, which currently trading at average of 250,000 baht per square wa. In the future, land prices tend to rise up beyond the point where small-time investors can afford. Nevertheless, Prospec Appraisal provides consulting service; project feasibility study, site selection analysis and any other question/concern you may have regarding issues such as lane width, land size, color zoning, layout, utilization restrictions etc. before making investment decisions. We are here to help you through the process.

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Hospitel

Hospitel: The merge between hotel and hospital. How would it be appraised?

We have previously discussed the article “Hotel businesses – Industry most affected by COVID-19”. Today, Investman will walk our readers through how the hotel business is coping with the situation, as reported by source – Prachachat Business. It is well aware that during the COVID-19 situation, Thailand is still closing its door and unready to accept foreign tourists, just like the majority of countries around the world. Meanwhile, domestic tourism itself is still considered minor, compared to the pre-covid era. This leads to the continual fall of the occupancy rate, which still has no sign of improvement. Based on the current situation, Thailand has just been hit by the 3rd wave of the pandemic. The viruses rapidly expanded and the number of infected people has constantly risen. As a result, hospitals began to have insufficient beds to support the increasing numbers of infected patients. Consequently, government and private hospitals have started renting out the entire hotel building and transforming them into an emergency base that heals sufferers. The hotel business adapted to survive According to Investman, there are different strategies for hotel businesses to adapt and cope with the crisis. Some were re-opened as long-term rental serviced apartments, while the others were partnered with private hospitals, transforming their properties into a hospitel.   “Hospitel”, a merging result of hotel and hospital Also can be called ad hoc wards, places with facilities for patients that are allowed to operate only under the supervision of the network hospital. Valuer’s point of view By becoming a hospitel, hotels are not directly affected by the transformation in terms of the property valuation, as their value would remain the same. However, from the valuer’s perspective, the adaptation of hotels will result in positive impacts upon the businesses during the pandemic, especially in these 3 main perspectives.  Occupancy Rate: During the Covid-19 situation, most of the tourists disappeared, causing occupancies to drop by more than half. Especially for those provinces that were relying on foreign tourists, the occupancy rate dropped to almost zero.  Revenue Structure: The main income of the hotel mainly relies on the tourist occupancy rate, followed by food and beverages, franchise stores and other incomes. With the Pandemic, these incomes declined. Expenditure Structure: Nonetheless, with or without tourists, the operating and administrative expenses, energy and maintenance costs would remain the same.  From the three main points mentioned above, we can conclude that the occupancy rate of the hotel has decreased as well as the revenue structure, while the expenditure structure remains normal. This suggests that the adaptation of the hotel will help increase the financial liquidity of the business, and the assets would be maintained and utilized, reducing deterioration. In which, the hotel valuation model has changed somewhat in terms of numerical data, but at the level of methodology and tools, it remains the same. An important variable is whether hotels will begin to adapt to a specific service model, like some other countries that have already started providing a permanent luxury dormitory service. In the future when the pandemic disappears, we are expecting new trends within the hotel industry, and when there are new standards to match the valuation, the appraisal method will be adjusted accordingly. Prospec Appraisal provides consultation with regard to appraisal of the hotel and hospital businesses, as well as other property appraisal services that investors are interested in.  Thanks to the news source: Prachachat Business

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Northeastern Railway Project For the Future

Northeastern Railway Project For the Future.

After previously introduced our readers to the two development projects of the Den Chai – Chiang Rai – Chiang Khong Railway and the Ban Phai – Maha Sarakham – Roi Et – Mukdahan – Nakhon Phanom Railway, proposed by the State Railway of Thailand, today, InvestMaN will dive into detail on the Northeastern Railway, after having delved into the details for the construction of the northern railway project last time round, Both projects are expected to affect a large number of people in various areas once construction is complete due to the size and budget for development. Project details Double-track type railway The overall route is a combination of ground level and elevated railway Connecting between Ban Phai – Maha Sarakham – Roi Et – Mukdahan – Nakhon Phanom Railway, with total distance of 355 kilometers Construction investment identified at approximately 55,458 million baht The construction is divided into 2 contracts – – 1st Contract : Ban Phai – Nong Phok, a distance of 180 kilometers, value at 27,123 million baht – 2nd Contract : Nong Phok -Mitraphab Bridge, a distance of 175 kilometers, value at 28,333 million baht – * Each contract has a construction period of not more than 48 months (4 years) after the land needed for construction has been delivered by the state. At present, the project is in the middle of the auction or e-bidding process of procuring contractors for each contract. Announcement of the winners of the bid is scheduled on July 23, 2021. Impact The main objective is to link the east – west economic corridor to support the government’s special economic zone policy and to be the economic center of the northeastern, central and upper provinces. A 20 -year development of the transportation system in Thailand to benefit Nakhon Phanom and neighboring provinces along the railway. Serve as a hub for tourism in the Mekong River Basin and the support of businesses and the border trading. Promote agricultural industry production and showing the potential of the northeastern region. Indirect impacts also include the price of land around or in the vicinity of the upcoming train stations, which are likely to increase more or less. Let’s also hope that it will help stimulate the tourism industry and the overall economy when this ongoing COVID crisis is well and truly behind us. In addition, this also presents opportunities for real estate investors looking to invest in land development in the next 5 years, in which the train is expected to be in operation. Anyway, before going forward with the public project’s construction of this magnitude, an in-depth study of the project feasibility or due diligence must be performed in order to ensure the intended outcome, a possible impact on the environmental aspect. These studies include an analysis of the project location and site selection. Prospec Appraisal is happy to provide valuation services and consultations for land appraisal or even business valuation for owners. Moreover, we also offer additional services on project feasibility study and site selection. Credit source: Thansettakij

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LandsMaps นวัตกรรมล่าสุดตอบโจทย์ยุคโควิด

LandsMaps, the latest innovation for the Covid era

This latest wave of COVID-19 has a severe impact on the lives of every Thai person, not to mention, the overall economy which has plunged deep every since the epidemic broke out. Now, the country is facing another potential curfew that has just been announced in many provinces. Without a doubt, Bangkok is one of the provinces that can be classified as a high-risk red zone. With many unfavorable factors during this period, both public and private sectors will have to try to adapt their strategy for survival in this hostile climate. For example, working from home has now become a normal part of our lives. Today, InvestMan has an interesting headline, which is in line with the issue of working in this very difficult time. Matichon has reported the latest update of the “LandsMaps” application that the Land Department has been developing for some time in response to the ongoing crisis. Let’s get acquainted with this application and what it can do. What is the main purpose of LandsMaps ? To provide services for those who wish to verify the location, photograph of the land plot or satellite image of the land to be used for various transactions. Previously, this process could only be done in person at the Land Department of each district. LandsMaps offer much more flexibility in terms of accessibility which is more convenient. Public now can access these information through the website or on their mobile phones via the “LandsMaps” application. Background behind the development of LandsMaps The development of LandsMaps was supported and funded by the governments who envisioned the need for public sectors to start adapting and improving their services in the digital world, in accordance to Thailand 4.0 policy. In the past, any process involving the government organizations usually took a long time. What information can LandsMaps provide ? LandsMaps uses satellite image data in conjunction with Google Maps service to import land data at present, covering more than 34 million plots of land across the country. The application shows all 14 basic information, including area, tonnage number, land number, title deed number, land survey page, land office, phone number, government appraisal prices, tax fees, the city planning & land use, etc. In addition, the system can display both Thai and English. Who benefits from LandsMaps ? Of course, the main beneficiaries from this development are those who have the need to access these land data, no matter, if they are for personal use, transaction or business matters. Professions related to real estate often involve the verification of land, such as property appraisers. The inspection of land title documents is one of the most important steps in the appraisal. In conclusion, LandsMaps arrived at the perfect time. Prospec as an appraisal company has relied heavily on the use of this application in our daily business operations. In addition to reducing the commuting to minimize the risk of COVID-19, it also helps reduce travel costs. Anyone who wants to access the application can do so through the website, https://dolwms.dol.go.th or via the mobile application “LandsMaps”. Credit source: Matichon

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Highly Sought After Property Type - Commercial Space

Highly Sought After Property Type – Commercial Space

Today, InvestMan has interesting news to present to our readers on the economic situation of the country. There is no further need to discuss the worsening Covid situation around the world, including in Thailand and how it has caused a negative impact on the economy of the country as well as the living condition of people who have to change their daily lives, such as working from home. Many businesses were forced to shut down after struggling to survive the crisis especially, in the tourism industry, etc. With all that being said, the reader would be surprised to learn that the total amount of commercial/office space and property transactions across Asia-Pacific has increased, in relative to the declining economic trend ever since the beginning of the COVID-19 outbreak. Bangkokbiz has recently revealed the analysis of the real estate market by JLL Company. All transactions that occurred in the first half of 2021 have accumulated over 2.7 trillion baht, which is 39% increased compared to the amount incurred in the same period last year. This trend displays how the real estate market adapts to the New Normal era. One of the main reasons for this rise is the expansion of e-commerce and logistics businesses, which InvestMan had discussed in the previous article. This has caused surging investment and development of property such as warehouses and distribution centers to meet the growing demand as e-commerce businesses are prospering from changing consumer behavior in regards to online shopping as a result of COVID. This trend is also evident in neighboring countries such as Singapore. According to JLL, the value of building has also increased in Thailand where logistic purpose property remains highly sought after by developers and investors. The total turnover occurred in the first half of this year, totaling 6.7 billion baht, and it is estimated that the number will likely to grow further in the second half of the year. This is a very encouraging sign which reassures the confidence of investors who are looking to invest in commercial space. However, investment or development in any real estate type requires deep analytical study of the project such as project feasibility study and site selection analysis to identify the suitability for the development objectives. Prospec Appraisal as an appraisal company, is more than welcome to provide our customers with these services. Credit source : Bangkokbiznews

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Watcharaphon Station

The intersection of the Pink and Gray line at Watcharaphon Station increases transporting commodities for a highly concentrated residential area.

    Recently, InvestMaN has conduct an on-site exploration of Watcharaphon Station, a junction point where two lines will intersect; the Pink line, from Nonthaburi Government Center to Min Buri, and the gray line, the northern part, Watcharaphon to Thonglor. Let’s get down to know about this intersection station. Ramintra Road is well known for its largely residential area along with various government buildings. Currently, the area is hugely populated by a single detached house and townhouse type of property, in comparison to a relatively few condominiums. Transportation Public bus 150 (PO.) Happy Land Bus Terminal – Wat Bo, Pak Kret Pier, Soi Wat Sanam Nuea 178 (PO.) Siam Park Garage – Siam Park 520 (PO.) Minburi Bus Terminal – Talad Thai 554 (PO.) Bus Terminal Premium (Rangsit) – Suvarnabhumi (Public Transport Center) 95 Happy Land Bus Terminal – Bangkhen Bus Terminal 95 Happy Land Bus Terminal – Rangsit Garage Main routes and expressways Chalong Rat Expressway (Ramintra-Atnarong) An extension of the Chalong Rat Expressway in the north at Ramintra – Outer Ring Road of Bangkok, a distance of 9.5 kilometers, starting from the Eastern Bangkok Outer Ring Road, Chatuchot area, south of Lamlukka Intersection heading southwest across Sukhaphiban 5 Road to the southwest until Ramintra Road. Ramintra Road or National Highway 304 starts from Lak Si Monument Roundabout, Anusawari Sub district, Bang Khen District, Bangkok cut off to the southeast through Lat Pla Khao Intersection intersect with Praditmanutham Road and Chalong Rat Expressway through the northern part of Bueng Kum, then enter the Khanna Yao area through Nawamin Road Intersection Intersect with the Eastern Outer Ring Road through the intersection of Ratchadaphisek – Ramintra Road through Suan Siam Road intersection, crossing Bang Chan canal into Minburi area which ends at the junction of Minburi. Pradit Manutham Road runs along the Chalong Rat Expressway. It is one of the main roads connecting the city to the northeastern suburbs of Bangkok. Watcharaphon Road connects many main roads, such as Chatuchot Road, Phahon Yothin Road, Sukhaphiban 5 Road, Permsin Road and Sai Mai Road. Propose selling prices for property increase in this area Condominium unit is sparse From surveying the region, it was found that the area is a yellow zone for residential use according to the city plan. Area is mostly occupied by low-rise residential projects such as single-detached houses and townhouses. There are still some units for sales in the existing condominiums that have been launched for a while, nevertheless, no new projects in sight. This was due to this area being and still badly affected by the ongoing COVID situation. Projects have received less visits by potential customers, reflecting the sparse number of transactions during this period. There are approximately 1,376 new condominium units in the area. Approximately 1,251 units have already been sold and are expected to be sold out within the next year.  From the survey of the selling price of condominiums located on the sub road, the average selling price is about 60,000 baht / sq.m. which is a slight increase.  Selling price of condominiums located on the main road, within close vicinity of the station,  average at about 70,000 baht / sq.m. There has been some upwards adjustment. It remains to be seen whether the trend of buying housing after COVID will shift the selling prices in the future. Land price announced for sale in advance Most of the land up for sale around the station are large plots. It remains to be seen whether the big real estate developers will acquire land after the COVID situation easen, as the land prices have fallen at the moment.  The price of land adjacent to the sub road within 1-kilometer radius of the station was estimated at 50,000 – 60,000 baht per sq. wah, three years ago. At present, the offering price is at 70,000 – 100,000 baht per sq. wah.  The current land price adjacent to the main Ramintra Road is on the rise with a proposed selling price at approximately 180,000 – 300,000 baht per sq. wah. It is fair to say that the price is relatively high compared to the condominium.  From the analysis of the land development cost for residential projects, the selling price per unit for condominiums located in the alley or sub road should not exceed 65,000 baht per sq. meter. Meanwhile, the cost of land must not exceed 70,000 baht per sq. wah. On the other hand, condominiums located on the main road near the station should have a selling price of no more than 79,000 baht. The cost of land to be developed should not exceed 125,000 baht per sq. wah.  Without a doubt, the price of land adjacent to the station will soar when the train is up and running so let’s keep an eye on the trend.  New condominium within 1 kilometer radius of Watcharapon Station Project 2012 (Nov) 2021 (Aug) Total unit Unit sold Remaining unit Selling rate (105 months) 1 58,xxx THB/sq.m. 69,xxx THB/sq.m. 1,168 1,051 117 10 units/month Project ปี 2018 (July) 2021 (Aug) Total unit Unit sold Remaining unit Selling rate (37 months) 2 64,xxx THB/sq.m. 73,xxx – 79,xxx THB/sq.m. 208 200 8 10 units/month Total     1,376 1,251 125 15 units/month Average expected time to sell out all projects : 8 – 12 months

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Let's get to know the “Hotel” in depth

Let’s get to know the “Hotel” in depth.

During the Covid-19 situation, it is considered a period of adjustment for the hotel, whether they would adjust their business from a hotel to a hospital, or aim to sell long-term rooms for people who want to Work From Hotels. Reinforcing the previous article told by Investman, Will hotels’ new strategies – operate monthly rental campaigns – affect the rental apartment business? and Hospitel New Breed of Real Estate Many people may still wonder if a hotel business requires a permit to operate or not. Today Investman is here to bring you an in-depth answer by dividing all the knowledge into different EPs. A hotel is a business establishment built as temporary accommodation for travelers or individuals who wish to use their services in exchange for a fee. Exception Accommodation facilities established to provide temporary accommodation services operated by government agencies, state enterprises, public organizations or other government agencies, for charitable or educational purposes, without seeking for profit or income to be shared. Accommodation established for the purpose of providing residential accommodation for a monthly fee and above only. Any other accommodation as prescribed in the Ministerial Regulation. Exempt places that are not considered hotels Not more than 4 rooms Not more than 20 guests Has the nature of conducting business to earn extra income notify the registrar in the prescribed form Hotels are classified into 4 types: Hotel type 1: Room only. There are no more than 50 rooms and the room area is not less than 8 square meters. Hotel type 2: Consists of rooms/ restaurant/ food service/ cooking facility. The room area is not less than 8 square meters. Hotel type 3: Hotel consists of rooms/ restaurant/ food service/ cooking facility/ meeting room, seminar with room area not less than 14 square meters. Hotel type 4: Hotel consists of rooms/ restaurant/ food service/ cooking facility/ meeting room, seminar with room area not less than 14 square meters. Documents required for filing a license The applicant’s identity card Copy of the applicant’s house registration juristic person certificate with a list of shareholders (Borj5, Plc. 006) not more than 3 months from the date of submitting an application for a hotel business license Application for renewal of hotel business license (Form Ror Ror 1/1) Copy of hotel business license (Form Ror. Ror. 2) A copy of the identification card and house registration of the director authorized to sign and/or the letter appointing a representative of the juristic person in case the director authorized to sign for the juristic person does not clearly specify the person authorized to sign. In the case of evidence and documents submitted in the request for permission to be amended or changed, the applicant must also submit evidence showing the amended document. Building inspection certificate (Form R.1) in the case of a hotel with 80 rooms or more or a hotel that is an extra-large building with an area of ​​10,000 square meters or more, depending on the case according to the building on the control law. Qualifications of the license applicant At least twenty years of age Have domicile or residence in the Kingdom of Thailand No bankruptcy Not an incompetent person or a quasi-incompetent person Has never been sentenced to imprisonment by a final judgment, except for an offense committed through negligence or a petty offence Has never been sentenced to a final judgment for an offense relating to sex/ narcotics/ trafficking of women and children/ prostitution Not under license suspension Has never had a license revoked or has ever had a license revoked for reasons other than the above but at least three years had passed Fee – Each half of the license renewal fees for each type of hotel license are as follows: Type 1 Hotel: Pay the fee per license at 5,000 baht. Type 2 Hotel: Pay the fee per license at 10,000 baht. Type 3 Hotel: Pay the fee per license at 15,000 baht. Type 4 Hotel: Pay the fee per license at 20,000 baht. -Hotel business fee is 80 baht per room per year. Sources Place of contact: Hotel Group, Order Maintenance Division 3, Office of Investigation and Legal Affairs, Department of Provincial Administration, Ministry of Interior In the case of other provinces Office of every district administration Contact 02-356-9559 , 02-356-9663 Criteria for setting up a hotel The nature of the accommodation building must be a reinforced concrete building or other building that is stable and strong. The purpose of the hotel is to be the sole accommodation of the traveler or tourist, and there is no character or behavior that implies any sort of agglomeration or contrary to tranquility, order, or good morals. Location must not be near government offices, educational institutions, temples, places for performing religious rituals, infirmary or hospital in a radius of 100 meters and must be located in an appropriate place which is convenient for inspection entry-exit route. There must be no traffic problems. Parking spaces must be adequately balanced with the number of rooms and the parking spaces must be separated from the guest rooms. Do not mix. Requesting for a license according to the types of the hotel is not finished yet. This is only half of the total information. However, Investman will quickly bring the information to present again in Ep.2. See you soon! Credit source : สำนักงานคณะกรรมการกฤษฎีกา  กฎกระทรวง เล่ม ๑๒๕ ตอนที่ ๗๐ ก เเละ Hotel license

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PROSPEC APPRAISAL

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