Acquisition of Hotels and Resorts
Hospitality and Tourism in Thailand play an important role in Thai Economy. Before the pandemic, according to the Mastercard’s Global Destination Cities Index, Bangkok was the most visited city in the world for fourth consecutive year. In addition, in 2018 there were 38.27m tourists coming to Thailand, and in 2019 Thailand reached its record of number of international tourists.
Based on H&P Bangkok lawyer’s experience in the hospitality sector, there are a wide number of services we have been providing to the hospitality business sector:
LEGAL HOTEL DUE DILIGENCE
Based on our professional legal experience, when it comes to an acquisition of an existing hotel in Thailand, we recommend to conduct a comprehensive legal due diligence on key aspects such as:
A) Business registration
B) Tourism License, Hotel License
C) Tittle deeds and Land Department registration
D) Financials of the hotel and audits
E) Tax status
F) Lack of pending litigation, encumbrances, loans or disputes G) Zoning.
BOI HOTEL AND RESORT STRUCTURING
Thailand Board of Investment is granting different privileges and incentives to Hotel and Resort investors.
The investor will be entitled to Corporate Income Tax Exemption for 3 years as well as non-Tax incentives. The conditions to be complied in order to be granted the aforesaid incentives) are:
- The investor shall contribute the investment amount not less than 500 million baht
- The hotel should have at least 100 rooms.
- The project of hotel should be located in 20 targeted provinces in Thailand
But Thailand BOI also stipulates the conditions for SMEs granting other incentives:
- The Hotel should have at least 20 rooms
- The investment amount should not less than 2 million Baht per room
- The project of business should be located in 20 targeted provinces in Thailand.
Finally, we advise the foreign investors and hotel companies considering to lease or buy existing Hotels, Resorts or Hostels business to practice a legal due diligence on the compliance on Thai Building Control Act in Thailand.
If you need to engage a law firm in Thailand to structure hotel businesses, please contact our Bangkok lawyers at [email protected]