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.