Buying a Hotel in Thailand: Complete Checklist

Published on September 29, 2025 and written by Cyril Jarnias

Thailand, with its pristine sandy beaches, rich culture, and exquisite cuisine, attracts millions of tourists from around the world each year, making it an ideal destination for investing in hospitality. Buying a hotel in this tropical country may seem like a complex venture, but with proper preparation and an organized checklist, this process can become a highly lucrative opportunity.

Whether you’re a seasoned investor or a newcomer to the field, our article provides a comprehensive checklist that will guide you through the essential steps of purchasing a hotel in Thailand, highlighting the legal, financial, and cultural aspects to consider for a successful project.

Embark on this exotic adventure and discover how to pave your way to success in the Thai hotel industry!

Overview of the Hotel Market in Thailand

The Thai hotel industry is experiencing a sustained recovery in 2025, driven by a massive return of international tourists (over 35 million in 2024) and steady growth in domestic tourism. Forecasts project a national average occupancy rate around 75%, nearly returning to pre-pandemic levels. Average room rates are also increasing (+5% year-over-year), primarily in four-star hotels and above, which are investing in renovations and upscale repositioning.

Annual Growth of the Hotel Market (2025–2033)

Year	Estimated Market Value (USD)	Annual Growth (%)
2025	1.42 billion	5.67
Forecast*	–	Between 5% and 6%

*Forecast based on expected CAGR between 2025 and 2033.

Dominant Segments

• Luxury hotels and serviced residences: growth above the national average.
• International chains (Accor, Marriott, IHG): strong competitive presence against local groups like Centara or Dusit.
• Rapid expansion of the premium segment with an upscale shift in international clientele.

Geographical Distribution & Key Tourist Areas

Hotel investments are primarily concentrated in the following tourist hubs:

City	Estimated Share of National Transactions (%)	Strengths
Bangkok	~60	Regional business center; MICE* tourism
Phuket	~20	Upscale beaches; resort destination
Chiang Mai	~10	Culture/lifestyle; sustainable tourism

*MICE: Meetings, Incentives, Conferences & Exhibitions

Other regions are now benefiting from increased promotion through the development of the “Green Destinations” label (16 labeled destinations in 2025), fostering the emergence of sustainable tourism off the beaten path.

Opportunities for Investors

• Strong global tourist appeal: strategic position enhanced by potential visa exemption extensions for key markets.
• Return to normal transactional dynamics after the exceptional peak observed in 2024.
• Growing demand for upscale experiences (wellness/spa/gastronomy/events).
• Active promotion by the state through major sports/cultural events (“Amazing Thailand Grand Tourism & Sports Year”).

Main Challenges

• Vulnerability to global economic uncertainties and tourist seasonality.
• Gradual strengthening of environmental/local regulatory requirements aimed at promoting sustainable development.
• Heightened competitive pressure between powerful international chains and established local players.
• Need for cultural adaptation in response to the increasing diversity of Asian/Western clientele.

Recent Examples of Major Transactions

Non-exhaustive list:

• Hyatt Regency Bangkok Sukhumvit: historic record transaction completed in late 2024 (~THB22 billion).

On average, the unit transaction size reaches THB1.8 billion (~USD53 million), an increase of +80% compared to the previous ten-year average. Approximately USD385 million will be invested in the Thai hotel sector in 2025, according to recent projections.

Post-Pandemic Impact on Tourist Demand

Demand is shifting towards:

• Longer stays from certain key markets due to temporary or permanent visa exemption extensions;
• Increased search for “experiences,” combining localized wellness (spa/regional traditions), Michelin-starred gastronomy (>400 listed restaurants including Sorn – three stars), cultural sports/event phenomena;
• Strengthened interest in less saturated secondary destinations, promoting better geographical distribution of tourist flow;
• Gradual but steady rise of domestic travelers due to continuously strengthening local purchasing power.

The post-Covid context is thus accelerating two structural trends:

• Strategic refocusing on premium international clientele,
• Growing integration of sustainable/environmental values into all sector decision-making layers.

Guide to Acquiring a Hotel in Thailand

Key Steps to Acquire a Hotel in Thailand

• Development of a detailed business plan (feasibility study, local market analysis, financial projections).
• Research and selection of hotels based on specific criteria: location, size, historical profitability.
• Engagement of a specialized lawyer to secure the transaction and verify legal compliance.
• Thorough due diligence: verification of property titles, existing licenses, condition of facilities, and ongoing contracts.
• Price and terms negotiation with the seller; signing of a reservation agreement with deposit into an escrow account.
• Finalization of the acquisition after complete validation (required documents: land title, building/hotel operation permit).

Legal and Administrative Considerations Specific to Thailand

• Foreigners cannot directly own land; acquisition through a majority Thai corporate structure or long-term leasehold.
• Mandatory license acquisition:

• Hotel license specific to the number of rooms and services offered
• Restaurant license if a restaurant is present
• Alcohol/tobacco license if these products are sold
• Other permits depending on ancillary activities (seminars/entertainment)

Hotel Type	One-Time License Fee	Annual Fee Per Room
≤50 rooms	10,000 THB	80 THB
With restaurant	20,000 THB	80 THB
Restaurant + seminar	30,000 THB	80 THB
Dining + entertainment	up to 40,000 THB	80 THB

The process typically takes about six months.

Financial Aspects to Anticipate

Financing

• Significant personal contribution required; limited access to bank credit for non-residents. Local partnership often essential.

Operational Costs

• Local staff salaries (+ social charges)
• Regular maintenance of tropical infrastructure
• Fixed charges: electricity/air conditioning, water
• Digital/local marketing

Profitability Forecasts

Concrete example:

Item	Estimated Monthly Amount
Accommodation revenue	variable by season
Payroll expenses	from ~12,000–20,000 THB/person
Energy & maintenance

Adjust forecasts based on local average occupancy rate (~60–75% outside peak season), regional competition.

Cultural Differences & Expectations of Local Employees

• Pronounced hierarchical respect — prioritize clear but respectful communication.
• Strong expectations regarding contract stability & social benefits.
• Importance placed on collective events (local/religious holidays).
• Multicultural management: adapt Western methods to a local participatory approach. Train expatriate managers in Thai culture.

Concrete examples:

• Regularly organize informal meetings around a traditional meal.
• Value seniority with appropriate rewards during national holidays.

Practical Tips for Adapting the Tourist Offer

• Offer both Asian AND continental breakfasts — meet diverse expectations.
• Facilitate bookings via international mobile platforms (Booking.com/Agoda) AND local ones.
• Integrate typically Thai excursions into the offer: floating markets, local temples…
• Adapt decor/rooms: “boutique hotel” style blending international modernity & authentic local touches.

Summary Table – Hotel Market Trends

Key Trend	Concrete Example
Eco-tourism	Use of local/organic products, waste awareness
Immersive Experience	Thai cooking classes/guided outings.
Digitalization	(Automatic check-in/mobile app).

Key takeaway: focus on personalized service while respecting local traditions to retain both international and domestic clientele.

Key Elements for Hotel Due Diligence in Thailand

Foreign Ownership Restrictions

• In Thailand, foreigners generally cannot directly own land. They can, however, hold shares in a Thai company that owns the land, subject to compliance with local foreign ownership legislation.
• It is crucial to verify the type of land title, ownership structure, existence of mortgages, leases, or other registered encumbrances.
• Consultation with a local lawyer is highly recommended to secure the transaction and avoid non-compliant setups.

License and Permit Requirements

• Obtaining a hotel license is mandatory to operate a hotel in Thailand. It must first be ensured that the building permit authorizes hotel activity.
• The license must be renewed every 5 years and only a Thai director, with the required experience or training, can sign the application.
• In case of a purchase, the license must be transferred to the new owner.
• Additional requirements exist for projects benefiting from Board of Investment (BOI) advantages, such as minimum room count and minimum investment per room.

Comprehensive Financial Analysis

It is essential to examine in detail the historical revenues and expenses of the target hotel: turnover, occupancy rate, ancillary revenues, operating expenses, potential debts.

The analysis should cover several years to identify trends, seasonality, and hidden financial risks.

Financial Element	Points to Verify
Revenues	3-5 year history, by segment
Expenses	Detail of fixed and variable charges
Operating Result	EBITDA, net margin
Financial Commitments	Debts, guarantees, ongoing contracts

Review of Operational Aspects

• Evaluate online reputation (TripAdvisor, Booking, Google ratings).
• Analyze customer reviews to detect operational strengths and weaknesses.
• Examine employment contracts, staff structure, and any potential labor disputes.

Infrastructure and Equipment Audit

• Technical inspection of buildings, rooms, common areas, pools, technical equipment (air conditioning, elevators, kitchens).
• Verification of compliance with safety, hygiene, and accessibility standards.

Location Evaluation

• Accessibility: roads, transport, signage.
• Proximity to major tourist attractions, beaches, shopping centers, restaurants.
• Future development potential of the region: new infrastructure projects, evolution of tourist demand, natural risks.

Criterion	Elements to Consider
Accessibility	Distance to airport/train stations, main roads
Environment	Neighborhood, noise, safety
Attractiveness	Tourist sites, local life
Future Development	Upcoming public/private projects

Engagement of Local Professionals

• Hire a specialized lawyer for verification of titles, ownership structures, and contracts.
• Consult a local accountant to audit accounts and taxation.
• Engage a real estate consultant for market analysis and valuation.
• Appoint an engineer or inspection bureau for technical building audit.

Thorough due diligence conducted with the assistance of local professionals is the best guarantee to secure a hotel investment in Thailand and minimize legal, financial, and operational risks.

Analysis of Tourism Statistics in Thailand

Current Tourism Trends in Thailand

Indicator	2019 (pre-pandemic)	2024	2025 (January-April)
International Arrivals	39.8 M	35.5 M	~11.2 M (as of April 20)
Annual Target	—	—	37–40 M
Chinese Tourists	11 M	~6.7 M	Decrease of -30 %
Tourism Revenue	—	—	+7 % in Q1 /471 Bn THB

• Visitor numbers remain dynamic but below expectations, with a post-pandemic recovery marked by overall stagnation and particular difficulties in the Chinese market.
• European and American markets are progressing while China is experiencing a historic drop in arrivals (-30% in the first months of the year), influenced by a difficult economic context and local security issues.
• The Thai government is lowering its forecasts for the year, now expecting between 37 and 40 million arrivals compared to nearly 40 million initially targeted.

Tourist Seasonality

• High season: November to March (dry climate, maximum international influx)
• Low season: May to October (rainy season)

Most Popular Regions

• Bangkok
• Phuket
• Pattaya
• Chiang Mai
• Krabi

Demographic Data & Main Source Markets

List of main source countries:

• China:
  • Sharp decline in 2025 (~30% only of pre-Covid volume)
  • Main cause of the overall downturn
• Europe:
  • Continuous progression; France is the third European market after the UK and Germany
• North America:
  • Steady recovery but volumes less significant than Asia or Europe

Source Market	Estimated % Share Pre-Covid
China	~28–30
Europe	~18–21

Asian tourists remain the majority, but their recent decline benefits European markets, which are recording relative growth. The average daily number of international visitors now peaks below 60,000, far from pre-crisis peaks.

Economic Impacts

• Contribution to national GDP: around 12 to 15% in recent years.

Revenue generated reaches 471 billion baht in Q1 (+7%) despite overall stagnation.

The annual target has been revised downward: 2,000 billion THB expected in tourism revenue compared to nearly 2,300 billion initially hoped for.

Evolution compared to previous years:

Despite a slight increase (+1.9%) early 2025 vs. early 2024, the sector remains below record levels (nearly –25% vs. pre-Covid).

Future Projections for the Tourism Sector

• Optimistic forecasts if rapid recovery on the Chinese side (>40M possible by end of 2025).
• Prudent scenario currently favored (~37M expected).
• The Bank of Thailand regularly adjusts its expectations in response to the Asian economic situation.

Government Initiatives

• Marketing campaigns targeting new premium segments (“high-value tourism”)
• Temporary easing/extension of visa exemptions for certain key countries
• Investments in major hotel/airport infrastructure
• Strengthened security measures to reassure international clientele

Structural Challenges

⚠️ Main challenges:

• Persistent dependence on the Chinese market;
• Pressure on natural resources in some islands/coastal regions;
• Need for more sustainable tourism in response to environmental issues;
• Increased management of overtourism during seasonal peaks;
• Vulnerability to regional geopolitical/economic uncertainties.

In summary:
Thai tourism is going through a transitional phase marked by an Asian downturn partially offset by a Western resurgence. The economic weight remains major but fragile; sustainability is becoming an unavoidable strategic axis in all recent sector projections.