Hotels Covid -19 Question?

[glenjean]

Hi All,

I have a two (2) part curiosity, subjective question, an opinion based question for all:

As we all know Pattaya and Jomtein and the surrounding areas (IMHO) has a higher concentration of smaller hotels, boutique hotels, guesthouses and bars that have rooms to rent out and restaurants that have rooms to rent out than probably any other city of its size in the world.

My question to the forum is specifically speaking of the smaller hotels, guesthouses and bars and restaurants that rent out rooms and accommodations in the price range………….. From 500B up to 2000B per night.

Note * I am not speaking of the 3, 4 and 5 star hotels or any hotels that have 25 or more rooms.

My 2 questions?

1. How many (in your opinion) do you think will survive (the Corvid 19 pandemic and economic fallout and collateral damage thereof) and remain open or the ones that have already closed………………will they ever reopen again?

Note * this is taking in consideration that no one really knows when the Thai government will allow International travel without quarantine restrictions to resume?  

 2. Going forward how much of this dynamic will affect the pricing and availability of rooms in smaller hotels, guesthouses and rooms bars and restaurants.…….under whatever “the New Normal” ………..will be? Will there be discounts or higher prices?

Note* I fully realize that if a hotel / guesthouse or bar or restaurant that rents out rooms are in debt and is depending on income (which presently is near zero) to repay their debt, then they are likely to go under and close or maybe never reopen under the current management…….whereas on the other hand, if they own their guesthouse or bar……etc. and have ample savings they will simply continue to remain closed until, hopefully the economy opens up again.

Additionally, I fully realize that under the current market conditions, there will always be crafty visionary cashed up business people who will be able to pick up a nice hotel or guesthouse or other property at a real bargain price.

Anyway as a long time visitor to Thailand and Pattaya specifically I am very curious as to what current long time stayer’s or ex-pats with boots on the ground think about my 2 questions. Thanks.

Stay safe,

 

 

 

[keepitfun]

1 Some

2 same same

[Eric Le Roi]

I'll let you know in about 18 months.

[wadman]

1. I would say that most of the smaller hotels and guesthouses are not owned by current management.  So if they go under, the landlords merely rent to another operator when business picks up.

2. IMO prices should go down a bit, maybe 10-20 percent.  Don't expect a huge price drop because it still costs a certain of money to keep a hotel up and running.

[Revanchist]

I wouldn't expect any sort of price drop at all. The survivors who have dipped into cash reserves to get through the downturn are going to want to rebuild those cash reserves or at least stop the bleeding.

The small places that are just one shophouse, or two knocked together... the landlord won't care if the operator goes under. There's not much stopping a new leaseholder from opening another guesthouse, or a retail business that just happens to have a few weird bathrooms in upstairs storerooms.