Hotel Due Diligence
Bali is an island full of tourist attractions and tourist destinations. From the beautiful white sand beaches and crystal clear waters of the Ocean to the beautiful and majestic mountains and forests of Bedugul and Kintamani, you can experience it all when visiting Bali. Whenever you visit a country, one of the requirements is the hotel where you will stay.
There are many beautiful hotels in Bali as it is one of the tourist hotspots in Southeast Asia. And because of the constant inflow of tourists to Bali, many foreigners are considering establishing their business in Bali, and some are considering taking over existing businesses in Bali.
One type of business taken over by foreigners in Bali is the hospitality industry. Hotels in Nusa Dua, Kuta and Ubud were taken over and brought in by foreign investors. However, there are certain risks when buying a pre-existing hotel or other business. To avoid this risk, you must carry out Due Diligence regarding the business you are interested in, with SPHM Hospitality, we offer Hotel Due Diligence, Corporate Due Diligence. Factory Due Diligence, Property Due Diligence, and Real Estate, etc.
Purpose Of Hotel Due Diligence
I'm a paragraph. Click here to add your own
Hotel Acquisition is a major business transaction, therefore, a Hotel Due Diligence came to life in order to safeguard the interest of the buyer or the one who will take over the business. Hotel Due Diligence focuses both on the physical nature of the hotel and the hotel assets and liabilities.
During a Hotel Due Diligence, the buyer must be able to understand the hotel’s structure and environment, the buyer must also be introduced to the hotel’s market and viability of the business itself. And, before finalizing or engaging with the seller of the hotel, it is also important to raise awareness for the buyer regarding the legality of the transaction and the background of the hotel and its owners.
Hotel Due Diligence usually tackles and checks any liabilities of the current shareholders and owners of the Hotel.
Furthermore, the process also checks any possible liabilities that may be bequeathed to the potential buyer.
Essentials Of Hotel Due Diligence
There is currently no stipulated checklist for Due diligence in Thailand under the Thai law, however, for SPHM & Consulting we have our essentials as how we call it when we do our Hotel Due Diligence process, below are the following essentials by SPHM & Consulting:
-
Legal Issues and Legality Check - Our Hotel Due Diligence service includes going to the court and checking whether there are current or previous cases related to the hotel or its owners/shareholders or even management employees. We make sure that all court case records of the hotel and its employees will be checked if there are any.
-
Operational and Technical Inspection of the Hotel - Part of our Hotel Due Diligence service is going to the hotel site and checking their operational component and the surroundings of the hotel to record and to make sure that any claims of the seller will be validated
-
Document Confirmation - Any document related to the establishment of the hotels such as licenses, permits, company documents, etc, will be confirmed and validated by our team at the respective government offices overseeing the issuance of such documents.
-
Business History - We also check the history of the business such as any sale and purchase or takeover transactions, any changes with the management, etc.
-
Financial and Legal Liabilities - We are keen on making sure that the hotel is ready for takeover or selling, so we also check all possible liabilities between the hotel and its shareholders/managers and possible debtors
