Hello everyone,

I was thinking in renting a hotel business and after doing some research, I have seen that there are too many hotel properties for rent and that worries me, it feels like as if businesses were not going well around there or there were too many competitors.

Is there anyone in the area who can tell me the reason why they are renting so many businesses? Do you think that it is already too saturated and it is no longer profitable renting a hotel there?

Thank you very much for your answers!

Regards

Inventia wrote: ↑Sun Jul 30, 2017 1:48 am Hello everyone,

I was thinking in renting a hotel business and after doing some research, I have seen that there are too many hotel properties for rent and that worries me, it feels like as if businesses were not going well around there or there were too many competitors.

Is there anyone in the area who can tell me the reason why they are renting so many businesses? Do you think that it is already too saturated and it is no longer profitable renting a hotel there?

Thank you very much for your answers!

Regards

either the leases are going up
or its people opening businesses up with not much prior experience or decent business planning
at a guess

Not only on Siem Reap, PP is in the same situation. It all stems from the fact that property prices are going up, labour and most products are cheap and for the people with money or access to it, there is more money to be made building hotels, rather than leaving it in the bank or having a business working seven days a week.

As property prices increase, investors want a % return on their money , therefor you have higher rents asked. Higher rents mean less profit for people running a business from them.

A hotel with cheap rent will survive if run properly and if the tourist still keep coming.

This is bit like the gold rush in San Francisco.

The real, sustainable money was made selling pick-axes, shovels, and Levis.

If you have the right construction experience, you're in the money.

Too many people working for the landlord.

Thank you very much for all your answers!!

They have been very usefull for me.

Regards!

You can also look at it this way , a lot of people opened one up with no idea of what they were getting into and want out when they find out it is not just open the doors and take the money to the bank. They do no think about the upkeep, the help and the abusive customers.
Or they are leaving Cambodia because they are tired of the girl they bought it for.

popeyesretreat wrote: ↑Tue Aug 01, 2017 4:24 pm You can also look at it this way , a lot of people opened one up with no idea of what they were getting into and want out when they find out it is not just open the doors and take the money to the bank. They do no think about the upkeep, the help and the abusive customers.
Or they are leaving Cambodia because they are tired of the girl they bought it for.

And you know this for sure? Story's all story's. Something to talk over with a beer and a few mates.

AndyKK wrote: ↑Tue Aug 01, 2017 6:24 pm

popeyesretreat wrote: ↑Tue Aug 01, 2017 4:24 pm You can also look at it this way , a lot of people opened one up with no idea of what they were getting into and want out when they find out it is not just open the doors and take the money to the bank. They do no think about the upkeep, the help and the abusive customers.
Or they are leaving Cambodia because they are tired of the girl they bought it for.

And you know this for sure? Story's all story's. Something to talk over with a beer and a few mates.

That is exactly what I am saying, no one knows for sure but everyone is assuming. Negative people will reply in negative ways, the sky is always falling, he needs to do your own research and take the negative comment with a grain of salt just as the comments that is it is great and it is always sunny and the cows poop gold. few know for sure, I bought a Pizza shop here in Florida that 2 or 3 chains already failed, every body told me I was crazy but I seen the potential and made it very profitable for over a decade till I sold it for 8 times profit plus I made a very good income while doing it. I was just driving down a street that has a sports bar on it in the middle of no where that I thought was going to fail, well that was after 10 years so I guess I was wrong, the place is packed every night. It is all about the operator