Before we get started I need to say this business is in Lao and not Cambodia. However it is close enough why not take a shot?

So the business consists of 4 run down dirty bungalows (don't fault me for being honest here I don't want to hear it.) there is one nicer small house and the potential of pool villas, one is already half built.

There is a 14 x 14 meter restaurant that is unfinished with a second floor in place that can be rooms or whatever Vlad and you guys can come up with. The restaurant is made of concrete and built with the appropriate amounts of metal and concrete. There is a potential of having a 3rd story beer garden on the top. In Laos you can only have rooms up to the 2nd floor but you can use the top.

All rooms are river front and include all the things one might need to become successful, such as hot water, beds, balconies and of course a roof for each of them. They are basic huts but command a good rate because of the pools and general resort ecosystem. Nothing special but pull okay money for what they are. The gardens and views are second to none except perhaps somebody has the first. Joking aside the gardens and view are very nice.

There is a substantial amount of kitchen equipment but the details of that are too lengthy and isn't what this sale would be based upon anyway.

The sale includes around a hectare of land the main business sits upon including a pool and all furntiure. I can show you the contracts for the main pool and the childrens pool and what was paid by a major manufacturer Desjoyaux.

Both pools are under ten year warranties and were built in the past 18 months. Desjoyaux covers warranties internationally regardless of the franchise holder in any given country. I can show the contracts of ownership and the international warranty. The larger pool is 14 x 10 meters and the adjoining kid/drunk pool is 6x4. There is seating for around 100 people comfortably.

There is a small shack of a bar which could be improved upon. Prices are typically at least 25% if not 50% higher than other places on the island because of the "pool" premium. The prices are still reasonable a large beer lao is $2. If you know how to make cocktail you can sell them around $6 each if they are good and big.

There is around $40,000 dollars worth of high end imported furniture that I bought through http://www.skylinedesign.com/ which is also basically brand new and under international warranty. Many of the pieces can be found in places like the JW Mariott or other 5 star hotels around the region. I did not skimp on these. It also has Sumbrellas http://www.sunbrella.com/en_us/ imported from the USA. You can google their catalogue to get a reference of what they sell.

The land is approximately 180 meters on the Mekong and around one hectare +/-. If you are interested I can dig up exact dimensions, I will need you to qualify yourself financially to make such an effort however. LOL I honestly don't know but anybody serious is welcome to come and take a look. It has year round access from road or river and is adjacent to the French bridge. 100% of tourists on the island pass this bridge for one reason or another. The other 0% are weird.

The land and guesthouse is owned outright with a hard title and there is no lease to pay. For those that can't legally own land in Laos this remains true. The offerings come with 3 other pieces of prime Mekong river front ranging from 22-30 meters of frontage. They do not adjoin but can be sold or further developed. They are all close to tourist areas and have excellent year round access via road or water. I estimate the price of one of these pieces to be approximately $25,000 so I would value them all at around $75k of course when they develop the bridges some of them will go up exponentially. All islands are slated to be connected by 2019 (we have heard that before) take into account with the flow through dam being built they will have the equipment to do it.

The name of the business is Long Island Guesthouse and Blue Lagoon pool bar.It is near the old French bridge in Don Det.

I played it sort of cautious so i own 49% of the land, 100% of the physical structures including the pools, and also have a 30 year lease. The lease and all property is transferable, the land is 100% transferable if you have a Lao partner. Otherwise you get 49% and the 30 year lease and will need to nominate a Lao partner at some point. Obviously if you are comfortable with the current partner this is fine, if not you can feel free to nominate who you wish to.

My books are a mess and I am forward about this. The income potential of the property with the only public swimming pool with in 100 KM is around $50,000 a year. I am lazy and don't do much but drink so if you throw parties or arrange events it wouldn't be hard to make more. The figure I listed is pretty much bare bones do nothing sort of thing.

The fee to go into the pool is around $4 per person, the bungalows are $20 a night x 5. So let's say I am not full but have two rooms and 25 customers, it is around $150 a day before we sell beer or food.

So assume a slow day or low season right now and you get around $280 (three months) on a good day in the high season and at least $80 a day in the low.

This is without events. The times I have done parties we have come out on an average of 50 people with around $400. I am not saying that is great but that is realistic.

Staff and pool chemicals and taxes will come out to be around $800 a month. So take around $9,600 a year off in expenses. These will be the same year round as you can not really shut the pool or lay off staff

Price $319,000


looking forward to being ridiculed,

Ryan


Show me the reasons that nobody in their right mind would seriously list a business here.

4000islandsguy wrote: looking forward to being ridiculed,

Show me the reasons that nobody in their right mind would seriously list a business here.

Hahaha! That's the spirit!

Did I miss the reason your selling?

An honest sounding ad, I must say.

I am better at developing something than running it. So I want to go try it again maybe around Tha Kek. I am also fatigued by backpackers, I am not used to it. I don't like to be chiseled and would prefer to retreat and regroup. There are so many beautiful places to go to that are opening up. Sure, it is painful to start over but that is the beauty for me. I am used to remote areas and although i am getting older thrive in the most remote and unlikely spots.

Is that in the area that will be under water when the dam is built ?

phuketrichard wrote:it sounds like a good deal BUT
Thats a ton of money for someone to come up with all at once AND wants to deal with backpackers ( those are what i assume is 90% of ur guests) AND live in a remote area of Laos

Have you considered taking on a working partner that owns a %? might be easier to find, especially with the 30 years

Good luck

Indeed it is a chunk of cash to come up with. Right now my Lao business partner runs it and he is trustworthy enough. I understand about not wanting to deal with backpackers that is part of the reason I would be willing to sell. One thing good about the pool is that if you increase prices of things and tack on the 35,000 Kip entry fee you eliminate most of your problematic people. Sometimes we get people who sneak in or think they are slick because they didn't pay on the way in. As soon as their toes touch the water they get a towel and are made to pay the fee. Also at $20 a night we usually get couples and families from online bookings. We have never tried to make a rasta bar sort of atmosphere as that isn't our target customer.

As far as the dam goes and it is the same guy that made this comment in another thread I had here.... it is a flow through dam that doesn't require a large reservoir. Beaker obviously doesn't grasp this concept. It is also being built on a different channel then the main one all the businesses are on. There is minor flooding from time to time in the area and that is just the nature of being on an island on the river. For the most parts the floods only do minor damage to some banks and are actually a really cool time to be there. My bungalows become a small island of there own sometimes with water surrounding them. They are accessible via a bridge all year round that is on the property. The pool is built on higher land. Should the area of the pool flood I will ring a bell to warn you as it would at that point mean Noah is building an ark.

When it floods what we do is grab a beer and a joint and relax and enjoy things. The floods bring nutrients into the land and or a good thing.

It is a fair deal but Phuketrichard is right it requires a very specific sort of person who has some capital and a desire to live in a remote place. Time is on my side and I am in no hurry.