Allamanda Condo Hotel Disintegrates

Last updated: Mon 10 Aug, 2009 5:49 am | Viewed: 661 times

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.

Can anyone possibly tell me when the Best Western Laguna Phuket Resort

Allamanda condo hotel is going to open for reservations as I am interested to book a lagoon view 2 bedroom villa from 31 January there for 19 nights? Cay Man

Bill Barnett responds: They are accepting reservations you can go do the www.lagunaphuket.com site and they link to reservations.

Cay Man, Sat 10 Oct, 2009 9:54 pm

You put your finger or it, that's exactly the way it is. Professional operators of condo-hotels are few because of the risk of devoting time, resources and their good standing in the market but always face the risk of being voted out. Hoteliers shy away from management in those kind of properties because of it, and the fact that they have to report to, and answers queries from, as many as a 100 owners. When owners are told that the leadtime to make a development profitable is at least a year they all acknowledge it, but in the course of the year they tend to get impatient, band together and vote out the management. This in turn doesn't inspire faith with tour operators and indeed other hotel groups. Time for the condo owner to grow up and stop trying to muscle management and micro manage things if they want a return on their investment.

Ian, Thu 13 Aug, 2009 8:55 am

hope to know more about the hotel industry in Phuket.

Jefferson Wang, Wed 12 Aug, 2009 9:18 pm

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