Tag Archive: hotel

  1. Hotel Amnesty in Thailand

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    Thailand’s hotel industry is one of the major economic sectors in the Kingdom, with more than 38 Million Tourists visiting Thailand in 2019. But still, a vast number of these accommodations is operated without licenses, or in violation of the law.

    hotel amnesty thailand

    Temporary suspension

    On June 12th, 2019, Order No. 6/2562 was issued by the National Council for Peace and Order (NCPO). This order suspends the enforcement of town planning and building regulations from June 12th, 2019 to August 18th, 2021, on buildings meeting the following criteria:

    • Operated as a hotel; and
    • Does not include a meeting/function room; and
    • Built before August 16th, 2016.

     

    Amnesty

    Further, this order grants amnesty to operators of hotels who were acting without compliance with these regulations before June 12th, 2019, if they notify the authority in charge of any of the following breaches:

    • Not having hotel license as stipulated by the Hotel Act, B.E. 2547 (2004);
    • Using land in violation of the Town Planning Act, B.E. 2518 (1975);
    • Acting in breach of the Building Control Act, B.E. 2522 (1979) as follows:
      • modification of a building without a permit;
      • use of a controlled-use building without a certificate for building modification;
      • change of use for a building without a permit to change the building’s purpose.

    After notification, the local authorities will inspect the building within 30 days of the report and inform the hotel operator in writing after the building complies with the law, so he can continue business without being penalized for the violations of the law as mentioned above.

    Please note: While the amnesty for violations of the fire safety regulations was limited to a period of 90 days after the amendment of this regulation, it is still possible to obtain amnesty for the breaches of the regulations mentioned herein.

    If you have any questions regarding the hotel amnesty, feel free to contact us at [email protected]

  2. Hotel License Application – Part II

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    This is Part II of a blog contribution that discusses the requirements for obtaining a permission to run a hotel under Thai laws and regulations:This is Part II of a blog contribution that discusses the requirements for obtaining a permission to run a hotel under Thai laws and regulations:

    3. The Applicant for the Hotel License (“Hotel Operator”)

    The Act also sets forth that the hotel operator, who is the owner or the operator of the hotel and applicant for the Hotel License, can be either an individual person or a juristic person. Section 16 of the Hotel Act stipulates certain circumstances that may preclude the applicant as hotel operator. If the hotel operator is a juristic person, the managing partner must comply with the aforesaid requirements.

    According to the Thai Foreign Business Act (as amended B.E. 2542, Annex 3), hotel undertakings are not permitted for foreigners. Therefore, private or public limited liability companies that engage in this business shall have Thai shareholding at a rate of 51% or more. The director of the company must be Thai (if there is 1 non-Thai director, there must be 2 additional Thai directors).

    running a hotel

    4. The Hotel License

    Pursuant to new Hotel Act, a hotel operation license will be valid for a period of five years from the date of issuance (hereto Hotel Act section 19). Current hotel operators who have already obtained a hotel license under the previous Hotel Act (B.E. 2478, 1935, as amended) remain license holders under the new Hotel Act. Their licenses remain valid and the license holders are able to continue operating their business until the licenses expire (hereto Hotel Act section 62).

    The Hotel License is transferrable to third parties if they transferee meets the aforementioned statutory requirements of the Hotel Act, Section 16.

    Remark: Additionally, the building of the hotel must comply with the Building Control Act (B.E. 2522, 1979, as amended) and the building permit must stipulate that the building may be used as a hotel (if located within the jurisdiction of the Building Control Act). In certain cases, other sub-licenses and permits are required to obtain the Hotel License, e.g. restaurant license, entertainment license, service vehicle license, generator permit, fuel storage permit, etc..

    5. Application Procedure

    The application process requirements include that various government agencies (local and provincial) are involved.

    The procedure includes the following steps:

    1. Application for a specific construction license at the District Office, which is signed and which should be filed by the civil engineer or architect;

    2. Application at the Provincial Office, which will forward the application to

    3. The Health, Environmental and Construction Authorities who will each have to inspect and approve the building and

    4. Issuance of the license by the Provincial Office.

    The process takes approximately six months, but may vary depending on the location of the hotel.

    Feel free to contact us [email protected] if you require assistance with regards to the operation of a hotel business, in particular with the application for a hotel license.

  3. Hotel License Application in Thailand – Part 1 of 2

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    Residential properties which are rented out as daily accommodations for tourists are under intense scrutiny these days in Thailand, in particular with regards to the requirement to obtain a hotel license. The main reason is clearly the high increase of rentals through online portals such as Airbnb.

    This is Part I of a blog contribution that discusses the requirements for obtaining such a hotel license under Thai laws and regulations.

    Accommodation providers shall apply for a permission from the competent registrar and need to comply with the rules and regulations in order to operate hotel business, if their residential place falls within the definition of hotel in the Hotel Act. The rules and regulations have the purpose of controlling hotel standards, promotion of hotel business operation, promotion and preservation of environmental quality, sturdiness, hygiene and safety of hotels.

    Hotel license thailand

    Definition of “Hotel”

    The definition of “Hotel” under the Hotel Act is stipulated as lodging premises, established for commercial purposes to provide temporary accommodation to a traveler or any person for a consideration (see Hotel Act Section 4). Certain exemptions exist as follows:

    1. any residential premises open to the public for rental with no more than 4 rooms on all floors in total, whether in a single building or in several buildings, and with a total service capacity of not more than 20 guests, operating as a small business which provides an additional source of income for the owners. The owners of such premises are also required to report to the Hotel Registrar;
    2. an accommodation place that is operated by a government authority;
    3. an accommodation place established with an objective to provide accommodation by charging monthly rate only (note that therefore also so-called “serviced apartments” are considered as hotels according to the Act if they provide accommodation on a daily or weekly basis; short term villa rentals, however, are not);
    4. other places that are stipulated in the Ministerial Regulation.

    The “Hotel Manager”

    Under the Hotel Act, there is a distinction between “hotel operators” and “hotel managers”. The hotel operators are the persons obtaining licenses for hotel operation, while the hotel managers are the persons appointed by the hotel operators who shall be in charge of the hotel management. The hotel operators must notify the registrar of details regarding their hotel managers. The operators can be the same persons as the hotel managers.

    The Hotel Act sets forth qualifications which hotel managers (Section 33 Hotel Act) and operators (Hotel Act section 16) must have. Thus the managers for instance must have been awarded a certificate, have experience as prescribed by the Hotel Business Supervision and Promotion Committee (“Committee”) or have a certificate showing that they have attended a hotel management training programs certified by the Committee. The hotel manager can be either Thai or foreign with appropriate visa and work permission.

    <<<Continue to part II of this blog contribution>>>

    If you have any questions about hotel licensing in Thailand, please do not hesitate to contact us: [email protected]

  4. Two Months Deadline For Unlicensed Hotel In Phuket

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    Unlicensed hotel in Phuket were given a deadline to do the required registrations before 31st January 2017 by Chokchai Dejamornthan, Phuket Governor. If they do not comply, owners may have to confront legal action.
    Mr. Chokchai also said that according to Provincial Administration’s information there are only 424 licensed hotels in Phuket while an estimation of 1,366 illegal hotels are currently under operation. The Phuket Provincial Administration gives an opportunity for unlicensed hotels to submit application together with the supporting documents at district office within 2 months. After expiration of this deadline, such hotels will be closed by Phuket Provincial Administration.
    During a public meeting with government officials it was announced that the crackdown would be starting from 1st December 2016. The main targets are residential properties such as apartments or condominiums who rent out daily accommodations for tourists and the main reason is due to the high increase of rentals through AirBnB.

  5. FRANK Legal & Tax represents investor during acquisition of 100+ room key hotel in Thailand

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    FLT represents an investor to complete the purchase of a 100+ room key hotel in a resort location in Phuket. FLT were responsible for the contracts and negotiations, due diligence and real estate matters. The hotel is currently under construction.

  6. Bangkok Hotel Occupancy Rates 2013

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    The number of international tourist arrivals to Thailand in 2013 was a record 26,556,397 increasing by 19.8% Y-o-Y (year on year).

    The number of international passengers disembarking at all AOT-managed airports increased by 14.7% Y-o-Y to 23,336,162 in Bangkok and by 25.8% Y-o-Y in  Phuket. The largest feeder market was Chinese with a 17.5% share of total international tourist arrivals to Thailand in 2013. The number of Chinese arrivals grew by 69.1% Y-o-Y.

    Overall in 2013, strong arrival numbers resulted in rising occupancy rates, despite the number of rooms in Bangkok growing by about 10% Y-o-Y. We also saw a fall in the number of new building permits being issued for new hotels.

    We saw that room rates finally started to rise after being flat for five years. The performance of hotels of all grades in Bangkok had improved from last year. The average occupancy rate of hotels of all grades in Bangkok rose to 75% from 70% in 2012. The Average Daily Rate (ADR) was also on the rise at around THB 3,200 which was an increase of 7.0% Y-o-Y.

    Source: CBRE (Thailand)

  7. Checking out Hotel Licenses

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    An article on the requirements for obtaining a hotel license in Thailand, including information on the hotel market in Phuket.
    Phuket News - Checking Out Hotel Licenses
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