Tag Archive | Hotel

Setting up a Hotel or Guesthouse in Cambodia

Opening a hotel or guesthouse in Cambodia involves a number of administrative steps. While it would be nice to simply find a suitable space and open one’s doors to paying guests, the reality is quite different.

Hotels and guesthouses (the difference is really one of size and nomenclature) are businesses like any other. That means that, while not strictly necessary, it is highly advisable that the owners establish a private limited company. Otherwise, they would be personally liable for the debts of the business. Like any company, you’ll also have to pay taxes – meaning obtaining a Patent Certificate and making periodic tax payments. Finally, you’ll need to obtain a hotel or guesthouse license from the Ministry of Tourism. This in turn requires a number preliminary approvals to check the sanitation and safety of the facilities. A fuller explanation of the procedures and applicable laws and regulations can be found in our recent report.

Failure to follow the proper procedure can lead to delays in opening and fines. Best to do it correctly from the start.

Company profile and registration

Trying to Invest in a Guesthouse/Small Hotel in Cambodia

In this context I usually use the term owner’s benefits, which includes salary, car expenses, entertainment expenses, health insurance; but these are all part of the expenses and do not constitute profit. The above naturally applies to leased properties only as foreigners are not allowed to own land. The accounting would be somewhat different in that case.  If you are married to a Khmer spouse, you can buy the land in her/his name, but the capital required makes this unfeasible for most. Frankly, I would not invest $2.0 million in land and a hotel in Cambodia. There are better ways to earn very good money with this kind of capital without the headaches that accompany the management of a larger hotel.


Sihanoukville is on the verge of transitioning from backpacker central to a flashpacker and middle-class tourist destination. It still lacks mid and upper range properties. Although there is a handful around, it is not nearly enough to arouse serious interest from larger tour operators in Europe, Australia, the U.S., Korea, Taiwan, etc. This transition will also help shed Sihanoukville that noxious reputation of being a haven for sex tourists, pedophiles, and other low-life that frequent such places as Victory Hill – the sooner the better. Cambodia could do without the riff-raff. Meanwhile, we keep on looking.

Read more…

Global hotel group sees profits rise 20 per cent

Global hotel group sees profits rise 20 per cent

Wed, 7 August 2013

Intercontinental Hotels Group, one of the world’s leading hotel companies and operator of InterContinental Hotels & Resorts – one of whose hotels is located in Phnom Penh – said first-half-of-year profits rose 20 per cent on strong gains in the Americas region.

According to a statement released yesterday, operating profit before tax for the first six months until June 30 reached $338 million, compared to $281 million last year.

Total revenue, the income before costs are subtracted, for the UK-based company that operates 4,643 hotels globally climbed seven per cent. In the Americas region, revenue grew by 14 per cent.

“Our global scale has allowed us to reinvest in the business while growing margins, resulting in solid underlying profit gains led by our Americas region, and strong cash flows,” Richard Solomons, chief executive of IHG, said in an earnings statement.

Stefan Voogel, general manager of the InterContinental on Mao Tse Toung Boulevard, could not be reached for comment yesterday.

According to Luu Meng, president of the Cambodia Hotel Association, overall revenue for hotels in Cambodia climbed by about 20 to 25 per cent this year.

He said an estimate of 510 hotels are registered in the country, compared with around 1,200 guesthouses.

Besides InterContinental Hotels & Resorts, IHG operates eight other hotel brands, including Crowne Plaza and Holiday Inn, its website said.