Cambodian business sense

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pczz
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Cambodian business sense

Post by pczz » Sat Dec 23, 2017 11:26 am

Just saw a 10 room guesthouse for rent for $1500 a month in kampot. You can usually get a room for 7 to 10 a night down there so 10 rooms X $10 is roughly $3000 a month if u were full all the time. at 70% occupancy that would be $2100 so you could make a whopping $900 a month BEFORE paying for staff, electric, water, laundry.
This is a common theme in Cambodia. The landlord wants all the profit and none of the headache. Looked at another property that needed a few thousand spent on it and the landlord would only give a 6 months lease with rent increases every 6 months , or a 1 year lease for 20% more than the 6 month one.

Is it just me or are Cambodian landlords totally insane (and the people who rent form them)
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Re: Cambodian business sense

Post by ArnieP » Sun Dec 24, 2017 3:10 pm

Seeing this all the time here in Kampot and Kep. Short leases, not much room for profit ( and since the past couple of years, shit tons of competition) ...
Don't blame the landlords though. As long as there are people putting their fingerprints on contracts,...
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Arget
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Re: Cambodian business sense

Post by Arget » Sun Dec 24, 2017 3:21 pm

The title of the topic is an oxymoron in itself, generally.
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Re: Cambodian business sense

Post by Username Taken » Sun Dec 24, 2017 3:40 pm

Just like shutting off the beach front at Sihanoukville during the high tourist season, then expecting the current tenants to come back two+ months later (start of the low season) and pay double rent. Who are the winners?

:facepalm:
... give 'em a quick, short, sharp shock ...

https://BooksAboutCambodia.com
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AndyKK
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Re: Cambodian business sense

Post by AndyKK » Sun Dec 24, 2017 3:44 pm

In most countries the building and land owners will always be the steady winners.
Always "hope" but never "expect".
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Re: Cambodian business sense

Post by willyhilly » Sun Dec 24, 2017 4:10 pm

Like most parts of the world the business owner works for the landlord.
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paparazzi
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Re: Cambodian business sense

Post by paparazzi » Sun Dec 24, 2017 9:08 pm

The Sihanoukville beach front being closed from January 4th is more likely to be highrise resort casinos in the future. This is a prime location!!!!

Anyone thinking new beach bars will be built best rethink.
I know many of the present bar owners are leaving town.

This land can return big dollars if leased to Chinese casino/hotel chains. It will likely be 2 or 3 years a construction site. In the mean time all the Khmer beach workers better look for new ways to survive.

Any Chinese coming to Sihanoukville better enjoy swimming in front of noisy, dusty and ugly building sites possibly. That wont bring then here in the thousands a week as the casinos are betting on. 3 years out may well be nice hotels but thats going to mean a tough few years coming up.

I could be wrong but l doubt it.

Wonder why Western hotel chains steering clear of the place? Could be infrastucture not going to keep pace with development.
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Re: Cambodian business sense

Post by SmartAston Martin » Sun Dec 24, 2017 9:32 pm

I hear the Chinese Navy docks there frequently, also.

Could be like this? I am extrapolating here, projecting a *possible* outcome.

US fleet in Thailand, mostly.
Chinese (and Russian?) fleet in SHK.

I can't imagine a Chinese base, but possibly? I see VN trying to put a stop to that.
Then the US pushes for Cam Ranh Bay by Nha Trang again. Nobody wants that, but if hawkish forces have their way ...

US-Cambodian military drills already cancelled, AFAIK.

Dizzying changes in geopolitical landscape, haha.
Melvin Udall: Never, never, interrupt me, okay?

Not if there's a fire, not even if you hear the sound of a thud from my home and one week later there's a smell coming from there that can only be a decaying human body and you have to hold a hanky to your face because the stench is so thick that you think you're going to faint.

Even then, don't come knocking...Not for ANY reason.
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Re: Cambodian business sense

Post by rogerrabbit » Sun Dec 24, 2017 10:19 pm

paparazzi wrote:
Sun Dec 24, 2017 9:08 pm
The Sihanoukville beach front being closed from January 4th is more likely to be highrise resort casinos in the future. This is a prime location!!!!

Anyone thinking new beach bars will be built best rethink.
I know many of the present bar owners are leaving town.

This land can return big dollars if leased to Chinese casino/hotel chains. It will likely be 2 or 3 years a construction site. In the mean time all the Khmer beach workers better look for new ways to survive.

Any Chinese coming to Sihanoukville better enjoy swimming in front of noisy, dusty and ugly building sites possibly. That wont bring then here in the thousands a week as the casinos are betting on. 3 years out may well be nice hotels but thats going to mean a tough few years coming up.

I could be wrong but l doubt it.

Wonder why Western hotel chains steering clear of the place? Could be infrastucture not going to keep pace with development.
Are they? Intercontinental, Marriott and Novotel are all opening their doors within next 3 years in Sihanoukville.
pczz
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Re: Cambodian business sense

Post by pczz » Mon Dec 25, 2017 12:28 am

The saddest bit is its happened before everywhere and the Cambodians are repeating other peoples mistakes. over reliance on 1 source of tourism and investment income is not sustainable. As a byword, the house my mate rentd in snooky for $650 a month last year is currently occupied by Chinese paying $2000 but yesterday I went to see a nice newish apartment in pp that was advertised at $600 and they will take $450 even for a short let. the bubble is beginning to go Bitcoin shaped, in PP at least. Oversupply
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