OFF AGAIN ON AGAIN Best Western Allamanda Laguna Phuket Opens

Last updated: Wed 17 Feb, 2010 7:34 am | Viewed: 376 times

It's been puzzling driving into Laguna Phuket and seeing first the placement of the Best Western Allamanda sign a few months ago, then it's removal and now again we have received a confirmation that yes the 129 room property is once again branded to the chain. The property is running under a franchise agreement with the US based brand and management services from local firm HMS; and it's been understood the delay in branding was subject to the property receiving quality control and standards approval.

There continues to be some controversy at Phuket's first condo hotel opened in the 90's, as the project is separated into 3 different juristic persons or legal entities. The Best Western is operating Phase 2 and 3 which front onto the golf course though check in is at the lagoon facing Allamanda 1. Though the latter through its owners have reportedly opted out of the condo hotel scheme, well respected property managed firm CBRE had provided management services which now have been taken over by the common area juristic person (CJP). For unit owners in the first phase, it now limits their rental options under the Best Western branded operation in the other two phases.

Confusing yes, we are not the only ones. But as for now this is the current state of play is somewhat clear, though unfortunately for buyers of condos who had hoped to benefit from ongoing rental returns, its either lucky or unlucky depending on your location in the various entities.

Tricky thing these mixed use developments / condominiums. They need management that have had both exposure to real estate + hospitality in order to balance the need and expectations of the hotel operating company, individual owners, guests and staff and lots of well considered structuring and agreements to avoid fall outs of the kind we've seen in Allamanda. Unfortunately there are many projects in Phuket (and Thailand as a whole) that have gone, or are going, the same way due to inexperienced management. In the US its common, in Thailand management are either property management or hospitality oriented and tend to stick to their guns, hardly ever is there a good blend of both....

Ian, Thu 18 Feb, 2010 1:05 pm

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