TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Allamanda Condo Hotel Disintegrates

Category: Hotels, Posted:10 Aug 2009 | 05:47 am

One of the long standing condo hotel projects on the island Allamanda in Laguna Phuket appears to be on the point of disintegrating as a consolidated resort. For a number of years the three individual juristic bodies of the project Allamanda 1, 2 and 3 functioned and were managed by Laguna or through one of their affiliated companies faced growing issues by the various owners groups, which have now led to a parting of the ways.
With Allamanda 1 engaging CBRE to manage the common areas; it's been reported that the owners of Phases 2 and 3 will affiliate to an international branded hotel group in the near future. What the situation highlights is the current deficiency in Thailand's condominium juristic act (CJP) to ensure a long term guarantee of seamless management; and for condo hotel operator's its nearly impossible to ensure a long term presence should owners change their minds down steam and vote out the group.
For buyers who purchase on rental yields this can create a confusing situation as the branded project you buy into today may not be the same set up in a few years time. Many of the larger mixed use projects with villas or apartments that are combined with a hotel have used leasehold structure which is regulated under the far more favorable Land Development Act and allows for long term contracts of operators.
In coming years hopefully both amendments to both the CJP and Hotel Act will address relevant legislation but for now buyers of resort managed projects need to be fully aware of the longer term implications of rental programs with both upside and downside issues.

Other News

Read more

Who’s Caesar And Phuket’s Fastest Growing Hotel Group

Category: Tourism, Posted:04 May 2021 | 06:00 am Welcome to the latest Thai Road Trip episodes from C9 Hotelworks and Delivering Asia Communications. Listen to the Executive Director of Jee Teng Hospitality talk shop and what’s next. We also get out the kitchen and into the dining room handcrafted tableside food service. Check these two now – Inside Story. A Phuket Hotel Group […]
Read more

Sandstorm In the Sandbox

Category: Tourism, Posted:03 May 2021 | 09:39 am All eyes this week locally are on the fate of the Phuket Sandbox which remains a work in progress. The second round of local vaccinations were planned to start this week but given Thailand’s third wave it’s unclear whether the process can move on the expected timeline due to vaccinations being deployed elsewhere in needed […]
Read more

Posh Pool Villas Debut, Island Expat Jabs and Elephants Gone Wild

Category: Tourism, Posted:26 Apr 2021 | 06:00 am It’s Monday and time to get the inside story in these latest video episodes of Thai Road Trip from C9 Hotelworks and Delivering Asia Communications: Phuket Luxury Tourism Heads East Covid-19 Vaccinations For Phuket Expats. What’s Next Phuket’s Journey For Ethical Tourism