Hotel Licence and Business Transfer Checks in Thailand

Quick answer: A hotel transaction does not automatically transfer every right needed to operate. Buyers and incoming tenants should confirm the hotel licence position, building use, operator, premises, safety compliance and other approvals before completion. The required route depends on the deal structure and the actual property.

1. Identify the transaction structure

Establish whether the deal is a property purchase, company-share purchase, asset purchase, lease, management agreement or a combination. Each structure affects who owns the property, who operates the hotel, which contracts continue and which applications or consents may be required.

2. Examine the hotel licence

Obtain a clear copy and verify the licensee, hotel name, address, room information, validity, conditions and issuing authority. Compare it with the current company records, title or lease and the physical operation. Ask the responsible authority how a change of company, operator, control or premises arrangement affects the licence.

3. Confirm lawful building use

Review building permits, approved plans, use permissions and later alterations. Compare approved use and layout with the actual room count and facilities. Check whether additions, conversions, rooftop use, kitchens, lifts or other works require further approval.

4. Review fire and life safety

Inspect alarms, detectors, extinguishers, exits, emergency lighting, evacuation information and relevant systems. Review inspection and maintenance records. A technical inspection should be performed by appropriately qualified professionals, not only by the commercial buyer or broker.

5. Check related operating requirements

Depending on facilities, a hotel may need additional requirements for food, alcohol, pools, spas, signs, music, transport or other activities. Verify every material permission by holder, address, expiry and conditions. Do not assume a licence continues merely because the business name remains the same.

6. Connect approvals to completion

The transaction documents should state which party obtains each consent, the evidence required, the deadline, and what happens if approval is refused or delayed. Consider conditions precedent, retention of funds or other protections appropriate to the transaction.

7. Verify after handover

After completion, confirm that required notifications, operator changes, tax registrations, insurance, staff registrations and authority records have been updated. Keep copies of submissions, receipts and approvals with the permanent hotel records.

Documents to request

• Hotel licence and related correspondence
• Company records and signing authority
• Title, lease and landlord consent
• Building permits, plans and use records
• Fire and safety inspections
• Food, alcohol, pool, spa, sign or activity permissions
• Insurance, tax and employee records

Official starting points

Check company information with the Department of Business Development, land matters with the Department of Lands, and hotel-administration requirements with the Department of Provincial Administration and the responsible local authority. Confirm the current process for the particular transaction and premises.