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

[CEOCambodiaNews]

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/

[Jerry Atrick]

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 .”

[violet]

Those who know - is that reasonable or is he dreaming?

[Jerry Atrick]

Those who know - is that reasonable or is he dreaming?

Not a real estate guy, thankfully, but $1500,000,000 for some land with a substandard white elephant of a hotel sitting on top seems a touch high to me

[truffledog]

does anybody have pics when the hotel was looking like it would collapse??

[hanno]

I do not pretend to know how real estate works but I learned long time ago that in order to establish hotel room rates, you divide the investment per room by 1,000. Assuming an occupancy of 70% (unlikely), the average room rate would have to be $2,868 per night and room. More than a touch high.

[mannanman]

Location, location, location?
Hmm, maybe it it was on the riverside.

[Kammekor]

The hotel has 528 rooms. If they have a 70% occupancy @ 100$ / night on average the revenue is about 40k per night. If there are no other costs you will break even in just over 102 years if you pay 1.5bln out of your pocket.

Sounds like a decent business case to me.

[John Bingham]

Those who know - is that reasonable or is he dreaming?

Not a real estate guy, thankfully, but $1500,000,000 for some land with a substandard white elephant of a hotel sitting on top seems a touch high to me

Sure, it's a ridiculous price. The only time that hotel was ever busy was when people were forced to quarantine there. I suppose they need money to build more white elephants on Bokor.

[nerdlinger]

Sure, it's a ridiculous price. The only time that hotel was ever busy was when people were forced to quarantine there. I suppose they need money to build more white elephants on Bokor.

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. Right at the meeting of the Mekong and Tonle Sap feels like a super prestige location long term regardless of what the infrastructure and economics are today. Of course most of that hinges on whether anyone else will be allowed to build a taller building right in front of it.

More likely though is that the guy’s just managed to find a way to get his hotel talked about as a super premium place in the press, for free.