Resort idea for outskirts of Udon

Post by **ozaddy** » September 27, 2012, 7:30 pm

Hi, firstly, I have no experience in the hotel industry and and would seek professional advise before going ahead with anything, but would like to hear your thoughts on a new boutique hotel idea.

The hotel/resort to be located just outside of the Udon Thani town limits, approximately 3km. Have 20 rooms inside the main structure of the complex with an additional 10 in individual huts (though same quality and size as the hotel rooms). Inside the hotel a restaurant and bar that would need to not only accommodate 100% occupancy, but also non-residents for a good quality meal and atmosphere. 2 eight ball tables and 2 small karoake rooms (8-10 people max in each room). Of the 20 rooms, 15 are studio deluxe and another 5 one bedroom deluxe each with own balcony. Inside would also have business centre, another 30 person conference room, small gym, kids play area, laundry, kitchen, managers office, staff room, managers residential premises all under the same roof on two levels.

Outside would include a swimming pool, small thai hut for massages, small bar near pool, toilets, etc. There would be a nature area, where people could just relax outside reading, lounging, snoozing, what ever. Also an area with grass for kids to kick a football, etc. and a kids playground. Also outdoors is a stable and a couple horses including ponies that kids could ride or learn to ride in a safe environment.

It sounds like a big project for a newcomer and if we could assume the money to build it is not an issue (though feel free to throw in figures if you have an idea). I would like your thoughts on if it would have enough going for it to attract people to stay outside of the city limits and pay a premium to do so. We'd also like to be able to cater for weddings and receptions and the grounds would be landscaped to give the bride pride on her big day.

Does Udon need something like this? and can it be made profitable?

Post by **Prenders88** » September 27, 2012, 10:13 pm

There is already a resort similar your idea.
Castle Howchow Resort in Kranuan near Khon Kaen.
Go and have a look, spend a night there. Howard the owner is a nice bloke.
Castle Howchow is IMO, the best resort in Issan.

www.castle-howchow.com

Post by **ozaddy** » September 28, 2012, 4:09 am

Thanks Prenders88, that gives me some idea. I will definitely spend time investigating what is currently on offer in the region and outside the region where they have similar resorts to my vision.

Post by **ozaddy** » September 28, 2012, 4:28 am

I see with Castle Howchow that prices start at 1000 baht a night and that they have accomodation for 146 guests, say approximately 65 guest rooms at a guess. Is the 1000 price point something a ceiling that many guests wouldn't go above? I was thinking only 30 rooms, but was thinking 1500-1750 minimum room, with a 4 star finish, including the flatscreen tv, bath, shower, kitchenette, safe, balcony, etc. I haven't worked out the numbers, but having a look at what is around 1500 minimum would be on the higher end of the price range, but I am picturing a top quality resort with top quality finishing and enough for both businessmen and families to keep occupied during the day. Something like http://www.phunacomeresort.com

Post by **mak** » September 28, 2012, 9:29 am

You might take a look at Nakhaburi Resort, which is 14k north of Udon on the Nong Khai highway.

Post by **ozaddy** » September 28, 2012, 9:40 am

Cheers mak, in my research so far, I did have a look at that one. It looks like they have a pretty snazzy water amusement setup there. What are peoples thoughts on being 14km out of the city centre compared to 3km? Is 3km close enough for people to ride a bike into town to look around? Also what are people's thoughts on kitchenette's? Are they worthwhile, or would they take too much revenue away from the restaurant?

Post by **Frankie 1** » September 28, 2012, 9:51 am

There are more holiday resorts in the region, this one for instance:

http://www.interresort-udon.com

This one is not so far from Phu Foilom.

And also be sure that people understand what kind of resort it will be. There are two kinds of resorts here. The holiday resorts and the resorts for "other" activities

.

Post by **rick** » September 28, 2012, 10:04 am

Hmm, hard to know if Udon is ready for such a place yet. Doubt if there is enough farang around who would use it much; You would need to have something that appealed to Hi-so Thais to make a go of it, so need something very special that will give them that 'oneupmanship' feel when they take guests there. Also consider a 'day pass' for people to use facilities but not stay overnight.

Kitchenettes. Hmm if you can afford the resort, you can afford to buy meals. but maybe something along the lines of being able to put some snacks on a plate and peel some fruit. Could always try one or 2 and see how it goes.

But if it doesn't take off, you need a plan B which does not involve loosing money every month.

Post by **parrot** » September 28, 2012, 11:00 am

http://www.fahluangresort.com/map.php
A mere 16km outside of Udon, it's the closest thing to a mountain setting near Udon (that I know of). Lots of mature trees, a large paddle boat pond, soccer field, camping, restaurant, fresh air, restaurant, meeting room, bungalows along the water or more modern style rooms in three new buildings.
I pass by often on my bike.......but see few restaurant or overnight customers. Can't tell you why........but if you're interested in starting a resort, this would be a good place to study.
Another large resort is the one near Naka, 12 or so km outside Udon on the way to Nongkai. A wide variety of bungalow or more modern style rooms, large restaurant/meeting rooms, swimming pool....all alongside one of the busiest highways leading into the city. I haven't been by there in some time, maybe some other members can chime in on the kind of service/food/prices.

If you're looking to invest a chunk of change in a resort in the area, I'd come to town for a month and study the many existing resorts to see what makes some of them work and many not.

Post by **maaka** » September 28, 2012, 11:11 am

will you ever get your money back on such a big venture ?
A Time Share Complex might be a better go..
No offense to Udon, but Udon is a flat dry agricultrual township, doesnt really have that pulling power as a place to relax and enjoy, say compared to a beach area, or the Mekong river area..I dont no if a pool with some sand around it, will draw the crowds, and if you are staying there, you want to go places on day trips..there are a couple of touristy spots within an hour drive, but not any island boat trips, beaches, mountain forests with elephants and that sort of thing..I guess if the the Khon kaen Kastle has good numbers attending then that is some sort of guide..

Post by **monkeyman** » September 28, 2012, 11:19 am

I have stayed with my family in the resort you mentioned (http://www.phunacomeresort.com/) many times and I personally consider it to the best accommodation in Loei, it keeps busy with ' health conscious guests' and is also very popular with trendy Thais,

I think that if you were to replicate that type of resort here it would do very well especially if it were a bit outside of the hussle bustle of town in the rural Isaan countryside..... not ideal for location, location...but that is the attraction of its theme....

Post by **fatbob** » September 28, 2012, 11:26 am

I have eaten in the resort on the way to Nong Khai, the food was good, the buildings are all traditional Thai with a lot of timber and very nice with a good relaxing feel, gardens all done with a lot of heart, every time though we have dined alone, never seemed to have guests in the rooms as the car park was virtually empty, although seen the odd bus in there, very strange for something done well.

As they say though the most important thing about real-estate and success in developing is location, location, location.

Would I build a resort in Udon? I would if it was for enjoyment or to keep myself active as a hobby but would I if it was to make money or to give any return on my money then most definatley not, to high risk, you can put your money in a Thai bank now and get 3.5% at no risk. From what I have witnessed over the years being involved in construction there is a good chance the developer will lose, break even or make very little if he is lucky but the first person to buy from the developer nearly always doe's well as they always seem to buy for less than land purchase and construction cost. This is my observation and of course if a market is hot then money can be made, will those days ever return?

Post by **ozaddy** » September 28, 2012, 11:36 am

Cheers for the feedback. It gives me much more to ponder.

Post by **trubrit** » September 28, 2012, 11:56 am

Well a couple of the local resort owners I know tell me their main market is catering for various local government seminars, which fill the place up, restaurant and all . Outside of that they tick over with family groups, about ten to a bungalow, cooking for themselves. Then they have the numerous Thai holidays when they are generally full with out of towm visitors .Now they are starting to get interest from Korean tour groups which they see growing .However the price ceiling seems to be 1,000bht per night room rate, pro rata for multi occupation bungalows. So I suppose success or failure would be decided by who you know, either in government or the tour operators. Incidentally the only Farang occupancy is limited to the occassional wedding party .

Post by **MaM Korat** » September 30, 2012, 5:21 pm

I used to stay at Tanita Resort in Udon Thani when I traveled there. It was quite nice. There is a big lake, swimming pool, a private balcony hut adjacent to the lake. If I am not mistaken, I paid 1000 baht. The drawback is it is out of town.

Post by **jagemi77** » October 9, 2012, 2:04 pm

Hi,

you might want to consider other development instead of a resort. as for what I know, a lot of investors are plotting somethings in UDON Thani or even the north part of Thailand. The main reason is due to their positioning which not really affected by the flooding system.

Udon Thani is not very well known as this moment, this reduces the patrons to the area which adversely affected the economy in that region. Despite, some investors already tried to develop the area into another attraction by creating UD town and Central Mall. It does attract the locals from other provinces however, the main thing is how to attract more tourists to the Town. Once the town has more people, creating more jobs...your resort will not only attract the locals but tourists around the world.

As such, it will be good if you can create something which has a "X" factor...if not....your ROI will be very very slow...

Cheers.

Jag

Post by **Prenders88** » October 9, 2012, 4:13 pm

Udon has not got any World Class attractions, which keep tourists here, instead of passing through, that's part of it's problem.
Shame really, as the airport is woefully under used and so near China, Laos, and Vietnam.
Some of the attractions it does have, suffer from poor facilities, lack of investment, zero health & safety standards, and sometimes overcharging for "foreigners".