Silver Reef Hotel

Don't recall the investment details though did tour the Silver Reef. Assume 20 rooms at 650 baht per night totals 13,000 baht, x 30 nights = 390,000 baht per month, x 12 = 4.7 MB annual, now x .7 to reflect 70% occupancy, = 3.3 MB, less operating costs of say 1.3 MB, leaves 2 MB net profit, or 10% return on asking price, if 70% occupancy achieved.

For naysayers saying it is overpriced, how much is city center land, and replacement cost of building and contents? Details please. I can only guess the building alone at least 12 MB, probably going higher every year.

The more crowded the location, the higher the commercial potential, and thus higher land cost. This explains why even unsightly Udon Thani property is expensive. The rice soup shop opposite the Post Office on Srisuk Road (near Maya) just bought two adjoining shophouses, each 4 meters wide, total land 50 square wah, they paid 12 MB plus 1 MB for renovations. This so they could sell bowls of soup for 30 baht each.

Downside of that area around the bus station and Silver Reef is that it seems to have riff raff 24 hours per day.

rct wrote:Don't recall the investment details though did tour the Silver Reef. Assume 20 rooms at 650 baht per night totals 13,000 baht, x 30 nights = 390,000 baht per month, x 12 = 4.7 MB annual, now x .7 to reflect 70% occupancy, = 3.3 MB, less operating costs of say 1.3 MB, leaves 2 MB net profit, or 10% return on asking price, if 70% occupancy achieved.

For naysayers saying it is overpriced, how much is city center land, and replacement cost of building and contents? Details please. I can only guess the building alone at least 12 MB, probably going higher every year.

The more crowded the location, the higher the commercial potential, and thus higher land cost. This explains why even unsightly Udon Thani property is expensive. The rice soup shop opposite the Post Office on Srisuk Road (near Maya) just bought two adjoining shophouses, each 4 meters wide, total land 50 square wah, they paid 12 MB plus 1 MB for renovations. This so they could sell bowls of soup for 30 baht each.

Downside of that area around the bus station and Silver Reef is that it seems to have riff raff 24 hours per day.

The Thai's ROI criteria is often far different from a Western person. IMO this is why a Thai might consider something a good deal while a Westerner will laugh and walk away. So who's right; is the deal a good one or not? They are both right! As long as an investor is happy with his investment it's a good deal.......for HIM.

Its a great place to stay. Tiffany and her hubby both lived in Canada as I recall and she is originally from Udon they are super nice and helpfull. I always found the place clean and quite, I like the fact that there is not a late night bar in the lobby that way I can keep the beers and the bed a little further apart and the five minute stroll from the action is good for reflecting/sobering up

i stayed there the first time i come to udon thani. it was a very convenient location to the plaza, bars and markets but the owner whom at first was friendly and chatty to me when i arrived, soon became otherwise.
she really appears to be wanting to be somewhere else. somewhat sad looking.

a candian chap staying there had some kind of anger management problem as he was often having difficulties with the other guests.

i think they do very well indeed due to the bus & train stations nearby.