My Life as a Hotelier in Cambodia I, II and III
Posted: Tue Jan 21, 2020 10:47 am
My Life as a Hotelier in Cambodia I, II and III
By KJE
AUGUST 6, 2018
.. I wanted to counter the declining prices of natural rubber on my rubber plantation by diversifying and investing in another business – a business that I was familiar with from my past professional experience as a tourism expert in Europe, the U. S., and Asia. Being a beach person and an avid boater I chose Sihanoukville – at that time the only resort town with acceptable beaches.
The front building was 10 years old when we took it over. It had been rented to the Australian consulate general while there was one in Sihanoukville. The furniture was a little dated and of the traditional Cambodian style. The advantage though was they were all triple or even quadruple rooms. As price points were rather attractive they were well booked. But the downside was it dragged our rating down. The majority of guests just didn’t like rooms.
We didn’t expect to make $10,000 a month but at least expected compensation in line with Cambodian pay scales, which would have been $3,000 a month for 2. Whenever there was a profit that would have enabled us to that kind of pay we needed to spend the money on repairs, purchase of new equipment etc. It did get better the last 18 months when we finally managed to pay ourselves a bit more.
Operating a business requires working capital in addition to the actual investment, of course. A hotel our size had overheads in the amount of $11,000/month on average excluding our own pay. This is exactly the amount we thought we needed. In order to be on the safe side we put in $15,000, one year even $30,000 to tide us over those financial bottlenecks. Again, this situation eased up the last 18 months when we didn’t need any additional working capital as the liquidity was sufficient to fund the operation.
As mentioned in a previous article we returned the property to the owner who turned around and leased it to Chinese people at more than twice the rent we had paid. What these people want to do with this property baffles us to this day.
Most difficult and absolutely the worst: French
Overseas Cambodian 2 out of 10 – 10 being the best
A close second: Italian 3
Third: Spanish, Finnish 4
Fourth: Austrian, Vietnamese 5
Fifth: Dutch, Belgian 6
Sixth: Russian, Japanese 7
Seventh: Scandinavian, Chinese 8
Eigth: American, British, Irish,
Cambodian, Thai 8-9
Ninth: German, Swiss,
Australian, New Zealand 9
Full. https://about-cambodia.blogspot.com/201 ... dia-i.html
https://about-cambodia.blogspot.com/201 ... ia-ii.html
https://about-cambodia.blogspot.com/201 ... a-iii.html
By KJE
AUGUST 6, 2018
.. I wanted to counter the declining prices of natural rubber on my rubber plantation by diversifying and investing in another business – a business that I was familiar with from my past professional experience as a tourism expert in Europe, the U. S., and Asia. Being a beach person and an avid boater I chose Sihanoukville – at that time the only resort town with acceptable beaches.
The front building was 10 years old when we took it over. It had been rented to the Australian consulate general while there was one in Sihanoukville. The furniture was a little dated and of the traditional Cambodian style. The advantage though was they were all triple or even quadruple rooms. As price points were rather attractive they were well booked. But the downside was it dragged our rating down. The majority of guests just didn’t like rooms.
We didn’t expect to make $10,000 a month but at least expected compensation in line with Cambodian pay scales, which would have been $3,000 a month for 2. Whenever there was a profit that would have enabled us to that kind of pay we needed to spend the money on repairs, purchase of new equipment etc. It did get better the last 18 months when we finally managed to pay ourselves a bit more.
Operating a business requires working capital in addition to the actual investment, of course. A hotel our size had overheads in the amount of $11,000/month on average excluding our own pay. This is exactly the amount we thought we needed. In order to be on the safe side we put in $15,000, one year even $30,000 to tide us over those financial bottlenecks. Again, this situation eased up the last 18 months when we didn’t need any additional working capital as the liquidity was sufficient to fund the operation.
As mentioned in a previous article we returned the property to the owner who turned around and leased it to Chinese people at more than twice the rent we had paid. What these people want to do with this property baffles us to this day.
Most difficult and absolutely the worst: French
Overseas Cambodian 2 out of 10 – 10 being the best
A close second: Italian 3
Third: Spanish, Finnish 4
Fourth: Austrian, Vietnamese 5
Fifth: Dutch, Belgian 6
Sixth: Russian, Japanese 7
Seventh: Scandinavian, Chinese 8
Eigth: American, British, Irish,
Cambodian, Thai 8-9
Ninth: German, Swiss,
Australian, New Zealand 9
Full. https://about-cambodia.blogspot.com/201 ... dia-i.html
https://about-cambodia.blogspot.com/201 ... ia-ii.html
https://about-cambodia.blogspot.com/201 ... a-iii.html