Leasing hotel in Siem Reap

[Johan009]

Good afternoon all,

I am moving to Siem Reap in a couple of weeks to find a hotel to lease for a couple of years, can anyone assist in the process to lease a hotel/ guesthouse? I am already in contact with an agent but it’s always good to know the process.

When leasing long term do you only pay the monthly rent amount and the deposit or is there a lump sum amount over and above the monthly rental amount?

[TWY]

Have you ever been to Siem Reap?

I'd really caution against showing up and leasing a guesthouse on the basis of a recommendation of an agent.

There are a ton of 2-3 star guesthouses that are for rent. Many are just put up for lease just to see if there is a large enough sucker around. And outside of that - there are simply too many small guesthouses here in Siem Reap - just down the road from us there is one that is a virtual ghost town. Literally, I walk by often times early evening and its all locked up as there are no customers that evening.

I'd recommend spending some time here so you can understand the different areas of Siem Reap - and ideally staying as a guest a few times at whatever guesthouse your considering. Unless you've done this before, this isn't where I'd want to start learning.

Good luck.

[kritsana77]

Have you ever been to Siem Reap?

I'd really caution against showing up and leasing a guesthouse on the basis of a recommendation of an agent.

There are a ton of 2-3 star guesthouses that are for rent. Many are just put up for lease just to see if there is a large enough sucker around. And outside of that - there are simply too many small guesthouses here in Siem Reap - just down the road from us there is one that is a virtual ghost town. Literally, I walk by often times early evening and its all locked up as there are no customers that evening.

I'd recommend spending some time here so you can understand the different areas of Siem Reap - and ideally staying as a guest a few times at whatever guesthouse your considering. Unless you've done this before, this isn't where I'd want to start learning.

Good luck.

This is very great advice.

[Username Taken]

Have you ever been to Siem Reap?

I'd really caution against showing up and leasing a guesthouse on the basis of a recommendation of an agent.

There are a ton of 2-3 star guesthouses that are for rent. Many are just put up for lease just to see if there is a large enough sucker around. And outside of that - there are simply too many small guesthouses here in Siem Reap - just down the road from us there is one that is a virtual ghost town. Literally, I walk by often times early evening and its all locked up as there are no customers that evening.

I'd recommend spending some time here so you can understand the different areas of Siem Reap - and ideally staying as a guest a few times at whatever guesthouse your considering. Unless you've done this before, this isn't where I'd want to start learning.

Good luck.

This is very great advice.

Yes it is, but a lot of assumptions are made of the OP, and it doesn't even come close to answering the OP's questions.

[Pedroviera]

Good afternoon all,

I am moving to Siem Reap in a couple of weeks to find a hotel to lease for a couple of years, can anyone assist in the process to lease a hotel/ guesthouse? I am already in contact with an agent but it’s always good to know the process.

When leasing long term do you only pay the monthly rent amount and the deposit or is there a lump sum amount over and above the monthly rental amount?

Owners (and agents) get you for whatever they can up front. A high lump sum/deposit is free money for them when/if you go bust. Maybe the norm but unreasonable for you. Check out Facebook rentals/expat/groups in siem reap. Many motels guesthouses different asking amounts deposit, upfront ect... . Though many owners have pride and resources to just let motel rot cuz farfetched terms . If you are in siem reap face to face you could find a minimal (comparably) cash up front deal. I'd place ad facebook minimal terms only and weed out be entertained by responses might catch an ok offer or beginning ok price negotiation . There are so many motels/guesthouses available. Many foreigners bailing and you catch fire sale that way...Im not trying to discourage you but I've lived in several decent good , clean, secure guesthouses siem reap for 8-15 per night and they low occupancy . Hats off to foreigners that have made it long term I don't know how the heck they do it. Very common asking rents 2500+ a month and not that many rooms considering

[Soyoung123]

Dear Johan -

With respect, I do not recommend leasing a hotel in Siem Reap. It is impossible - impossible - to make money. About 15 years ago it was a great market, but since then we have seen an overproduction of hotels which did not reflect growth in tourism. Way too many rooms, not enough people.

In addition, many Cambodian nationals have entered the market. They do not need to pay rent or often salaries (as families fill in as staff). This is a huge competitive disadvantage, especially in the low season, where you occupancy will be 15% but you still need to pay your team and landlord

Lastly, do NOT trust real estate agents. They want to see you fail and will tell you anything to believe you can make a profit. Why? They get their commission they day after you enter into a contract (typically first months rent). They want you to go out of business as soon as possible. Why? Because then they can re-list the hotel, rent it out to the next sucker, get another commission. Rinse and repeat.

DO NOT TRUST.

----

If you don't believe me, look at Agoda.com:

Currently 20+ establishments renting beds for $1.00-$2.00/night

Boutique Hotels in the $10-20 range

5 Star (Relatively Speaking) in the $25 - 45 Range.

These are before a 15-30%+ commission is taken by Agoda.com if you want to get any visibility on the page.

--

If you would like to start a hotel their is the possibility in more rural provinces. I was surprised by the limited options in Kratie, for example. Virtually no boutique hotels and the hostels I visited were full (in the low season). I could see both ecotourism bringing more travelers there as well as expats living there as they flee coastal communities. They would need a place to stay and a restaurant to drink 0.50 cent beer at.

--

If you have any questions feel free to PM me. Happy to go into more details and save you money. I might also reach out to the following, expat owned hotels who are surviving: Golden Gecko Villa and Baby Elephant Boutique about their experiences.

[phuketrichard]

mods:
how does someone get +3 karma points from the same person?

Do agree, oversupply and dont recommend unless you have Japanese, Korean or Chinese connections to fill ur rooms.

[angkorjohn2]

Good afternoon all,

I am moving to Siem Reap in a couple of weeks to find a hotel to lease for a couple of years, can anyone assist in the process to lease a hotel/ guesthouse? I am already in contact with an agent but it’s always good to know the process.

When leasing long term do you only pay the monthly rent amount and the deposit or is there a lump sum amount over and above the monthly rental amount?

SIr, there are currently over 850 hotels and guesthouses in Siem Reap, approx 25% are on the market either openly or on the quiet. It is low season so plenty of people who wanted to live the dream until reality bit are looking to palm it off onto the next sucker so by all means you will find one. Usually when leasing a hotel here they request a deposit of anytthing between 4months-1 year. You may be buying an existing place off someone so they would expect a purchase fee that may include the name, equipment recipes...etc. goodwill is a severely overvalued commodity here.

WHy rent a hotel for a couple of years? Unlikely you'd turn any profit until Year 3.

[Bubble T]

[whiteribbon]

WHy rent a hotel for a couple of years? Unlikely you'd turn any profit until Year 3.

A friend of mine takes leases on hotels here, completely renovates them within a year and sells the leases on for a very good profit. It can be done if you got balls of steel.