Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

rogerrabbit · Post by **rogerrabbit** » Fri Jan 28, 2022 7:32 pm

John Bingham wrote: ↑Fri Jan 28, 2022 7:11 pm Any idea how much land we are talking about?

Almost 15 hectares, not including the land where Sokha hotel is.

Kammekor · Post by **Kammekor** » Fri Jan 28, 2022 8:09 pm

nerdlinger wrote: ↑Fri Jan 28, 2022 5:51 pm

I guess he’s trying to strike while the iron’s hot, in terms of the hotel’s recent spell in the spotlight.

While the current market seems to be a bit wobbly, I’ve a feeling that in 20-30 years time that land may actually be worth what he’s asking.

If it's worth that in 20-30 years with an interest rate of 7% the nett present value is about 1/5th of what he is asking. With 5% interest it's still only 1/3 to 1/4 of the quoted price.
In that calculation there's no factoring in of the civil unrest which might depreciate the value during that period of 25 years.

The price put on the property is 4-5 times the value everyone can calculate on the back of a beer mat. Even if that calculation is a bit off, the named price of 1.5 billion is simply ridiculous. Plus.... What will the place look like in 25 years?

Kammekor · Post by **Kammekor** » Fri Jan 28, 2022 8:22 pm

rogerrabbit wrote: ↑Fri Jan 28, 2022 7:32 pm
John Bingham wrote: ↑Fri Jan 28, 2022 7:11 pm Any idea how much land we are talking about?
Almost 15 hectares, not including the land where Sokha hotel is.

So that's about 80 million per hectare.

phuketrichard · Post by **phuketrichard** » Fri Jan 28, 2022 8:28 pm

its a steal for a chinese consortium
the money they can wash in a place like that, the mind boggles

Element6 · Post by **Element6** » Fri Jan 28, 2022 9:16 pm

I stayed there when in quarantine and it was $100 per night hotel at best. The wooden floors were already warping and buckling and the standard of materials used was appalling. The carpets in the hallways and corridors were already coming apart at joints.

Don't forget half of the rooms face inwards so don't have a view at all

I have been on the top floors in the event spaces for work functions and they were not better than much cheaper hotels.

The hotel on Bokor is similarly awful so perhaps that is his 'style'

Jack.R. · Post by **Jack.R.** » Fri Jan 28, 2022 9:30 pm

CEOCambodiaNews wrote: ↑Fri Jan 28, 2022 3:46 pm 6 mins ago - BREAKING NEWS
For sale: Phnom Penh’s iconic Sokha Hotel – price-tag $1.5 billion

Phnom Penh’s iconic Sokha Hotel – a dominant feature of the Phnom Penh riverside view since it’s official opening in 2015 – is now understood to be for sale for $1.5 billion in order to pay off debts and finance further development elsewhere.

The owner of the hotel, Sok Kong, a well-known billionaire who is the Chairman of the Board of Sokimex Investment Group, has stated that he wants to sell Sokha Phnom Penh Hotel and land in Chroy Changvar for $ 1.5 billion to invest in his Bokor resort, situated on Bokor Mountain in Kampot province, which is built on land leased from the government for 99 years.

Mr Sok confirmed that although he is eager to sell, he has not yet received an offer, stating in an interview with Fresh News that “…no one has come to negotiate and buy the Sokha Phnom Penh Hotel and land in Chroy Changvar.

No, just in the past, someone asked me if I want to sell, how much? I said that if I sell, I will sell for 1.5 billion dollars, and if I can sell, I will use some money to further develop the Bokor resort because I need to develop other areas and some to pay off their debts .”

The Sokha hotel, which boasts 523 rooms and is billed as ‘strategically located on Chroy Changvar peninsula, opposite to the Royal Palace and approximately 13 km from Phnom Penh International Airport. Offering breath-taking view of the majestic Royal Palace, Chaktomuk River and a wide sweeping view of the untouched greenery rural beauty opposite of Phnom Penh capital, Sokha Phnom Penh provides the peaceful, less busy side of the congested capital.’ achieved notoriety last year as the epicentre of the ‘February 20th‘ [Covid outbreak] incident.
https://www.khmertimeskh.com/501015196/ ... 5-billion/

Maybe 150 millions.

523 rooms if each one was sold as an apartment building for a generous 100.000$ each it would be worth 52 million.

Even estimating it at 2x because of the extra land and ground floor it would be 100 millions.

Add an extra 50millions in goodwill (lol) and you get to 150million.

But 1.5 billions? Utter no sense.
The outside of the building has the style of a Soviet apartment block...

For 1.5 billions you could buy cell card and wing including their head offices and have enough money left to build a copy of that hotel....

John Bingham · Post by **John Bingham** » Fri Jan 28, 2022 9:32 pm

Kammekor wrote: ↑Fri Jan 28, 2022 8:22 pm
rogerrabbit wrote: ↑Fri Jan 28, 2022 7:32 pm
John Bingham wrote: ↑Fri Jan 28, 2022 7:11 pm Any idea how much land we are talking about?
Almost 15 hectares, not including the land where Sokha hotel is.
So that's about 80 million per hectare.

If nobody else can do it I'll figure this out when I get home. How much does this work out per square meter?

Jack.R. · Post by **Jack.R.** » Fri Jan 28, 2022 9:50 pm

The Soka hotel is built on 5.2ha of land including parking lots and all.

At 1.5B the land would be worth an insane 29.000$/m²

However if the empty plot of land with the temple is also included in the sale than it's 13.5ha selling at 11.000$/m²

Still far above land values there, it should be half of that even with the great views.

Other main road lands around it are around 2000$~3500$/m2 because that is a great spot it could be valued at 5000$/m2 but more than that i don't see it.

Anyway personally i would consider it worth a look from some investment group at 500millions if it is really 13.5Ha but not more than that.

But maybe there is more land included in the deal.

Jerry Atrick · Post by **Jerry Atrick** » Fri Jan 28, 2022 9:52 pm

John Bingham wrote: ↑Fri Jan 28, 2022 9:32 pm
Kammekor wrote: ↑Fri Jan 28, 2022 8:22 pm
rogerrabbit wrote: ↑Fri Jan 28, 2022 7:32 pm
John Bingham wrote: ↑Fri Jan 28, 2022 7:11 pm Any idea how much land we are talking about?
Almost 15 hectares, not including the land where Sokha hotel is.
So that's about 80 million per hectare.
If nobody else can do it I'll figure this out when I get home. How much does this work out per square meter?

$8000

nerdlinger · Post by **nerdlinger** » Fri Jan 28, 2022 9:53 pm

Kammekor wrote: ↑Fri Jan 28, 2022 8:09 pm
nerdlinger wrote: ↑Fri Jan 28, 2022 5:51 pm

I guess he’s trying to strike while the iron’s hot, in terms of the hotel’s recent spell in the spotlight.

While the current market seems to be a bit wobbly, I’ve a feeling that in 20-30 years time that land may actually be worth what he’s asking.
If it's worth that in 20-30 years with an interest rate of 7% the nett present value is about 1/5th of what he is asking. With 5% interest it's still only 1/3 to 1/4 of the quoted price.
In that calculation there's no factoring in of the civil unrest which might depreciate the value during that period of 25 years.

I’m not basing it on the notion of steady year on year gain, but on the idea that Phnom Penh is likely to see seismic transformational growth over the next decades, along the lines of the kind of changes other major Asian cities saw in the 70s-90s. Maybe I’ll be proven wrong some day, but for me a big part of the appeal of Cambodia is seeing the parallels between it and those “before and after” photos of the old vs new skylines of cities like KL, Seoul, Singapore, Dubai and other such places that went from Developing status to housing literal billionaires in a few decades.

The issue with your 7% is applying a number that’s reasonable in aggregate across a whole nation to something that represents only the wealthiest part. We’ve seen many times this century so far that the top 0.01% end of the wealth spectrum doesn’t obey the same numbers as the rest of us.

Edit: for clarity, I’m not saying that $1.5B is a good deal, it absolutely isn’t. Just that it might become one at some point within our lifetime.

Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

Re: Phnom Penh's Famous Sokha Hotel For Sale - Only $1.5b

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