All Forum Posts by: Priti Donnelly

@Andrew Olmstead

Appreciated, thank you.

@Zach Edelman

Thanks for your question. The developers have no debt – no bank or private loans. They have 7 projects in total, all self-funded. Therefore, they can set their own terms.

Instead of getting 8%, for a suite, or several suites, investors can opt for developer funding. 25% deposit, with interest free payments on the balance over 17 months, and a balloon payment of 20% on the 18th month, payable when construction is complete.

Not sure if that answers your question. If not pls let me know. Happy to clarify.

@Mike Lambert

Thanks for your comments.

Although investing in the major cities in Thailand has been increasing in popularity, it is personal choice. That being said, I would like to clarify a few points as my initial post was a bit vague. The benefits to investors with Thailand are affordability and higher yield, unlike Canada, US, UK, Australia and other parts of Europe. Yes, your concerns are quite valid if you are investing in a residential condo -- you would own the condo but not the land it is on. This project however is owning a suite that is part of a commercial asset class in an international hotel chain, very different investment from investing in a residential condo. Happy to introduce you to the developers if you wish to explore the profitable differences between the two asset classes.

Regarding yield, 8% is the cash back for up to two years during the development. Upon development, yield is expected to be at 10.62% or higher. The hotel rate is approx. USD $51/night which can vary depending on occupancy. Yes luxury hotels have higher rates, but you cannot invest in individual suites; you would have to purchase the whole hotel.

Regarding comparisons to other countries, I have worked with the Japanese market for over 8 years. 8% is definitely high yield. In Japan that kind of yield would not be found in Tokyo, but in the higher risk areas where occupancy rates are lower. Also, the language barrier poses challenges for investors. I would be interested in knowing which countries you know of that have more than 8% yield and affordable.

As for the location, it is in Jomtien in a tourist attraction area. Columbia and Sony have also chosen this area for their theme parts because of its easy access and proximity to major cities. 

I would like to know about the “headaches” you are referring to. The benefit of this project is that it is fully maintained by Ramada, and when you are not using it, they will rent it out for you as well. Also, rooms are refurbished every 5 years at no cost to the investor.

I recognize Thailand might not be for you, but I hope I have clarified any misconceptions.

@Don Konipol

Thank you for your input. My post was intended for people to contact me if interested, but in doing so, posted it to the wrong section. And, yes, I agree with you, in this context the 10.25% appeared ambiguous. Let me try to clarify without sounding salesy. This is an actual project under development in Thailand, 6 hotels on 64,000 sqm. They are Wyndham licensed short-term rentals under the Ramada brand. Because the project is a commercial asset class in an international hotel chain, these short term rental yield higher than residential properties. Based on the area,
yield has already reached 8.98% with occupancy rates at 55%. Occupancy rates have been climbing and close to 65% where it was prior to covid. By April 2024 yield is projected to be at 10.62% or higher.

You asked, what if covid hits again. Even though the project is expected to be completed in one year, the developers have put a contingency in place for investors of 8% cash back for up to two years. On the 3rd year if the project is not completed, investors can request a refund as part of their contract.

I appreciate your advice on more effective ways to use BP to advertise and will certainly take it into consideration. I used to post in the “International” section, and thought I was doing that, but the site has changed and clearly I posted in error. My apologies to the group once again.

My apologies to the group. Sarcasm really wasn't necessary. I am still trying to navigate the site. Thank you @Michael Baum for the constructive input. 

International Investors,

The Thai market has opened up with exceptional yield and very affordable. Short-term hotel living rentals under development currently at 8% will have yield of at least 10.25% by April 2024. Prices are USD $80K and less.

Happy to share more info.

--Priti Donnelly

@Carlos Ptriawan and @Juan B.

Thanks for your comments. I'll connect with you and send you the information by email. I checked and yield right now in the area is at 10.25%. Upon completion it will easily hit the 15% range. 

If international hotel real estate appeals to you @Austin Sisk, we have 108 keys of a Wyndham/Ramada hotel in Thailand from which you would earn 100% revenue. It is a JV. The developers own the commercial aspect. This hotel is in development. During the development phase, the developers are paying 8% per annum until completion (2 years). With occupancy rates soaring, your returns once operational are projected to be upward of 10%. If that's of interest, happy to introduce you to the developers.

Hi @Jennifer Pauyo true not a balanced ratio, but doesn't matter to me. The men in my team are great to work with. Just briefly, I focus on the post-pandemic growing trend of ownership of individual hotel suites, Wyndham/Ramada, in Thailand with minimum yield of 8%. 

Fractional ownership is a growing post-covid trend. It allows everyday investors a chance to afford ownership of a property. The caveats are monthly fees, resale, and that you actually own the property rather than the "right to use" it. We sell fractional ownership as well with Wyndham/Ramada hotel resort suites in Thailand. No monthly fees because you own it. And you earn an income when not in use, as Ramada will rent it out for you. Quite popular.