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This sounds confusing and by mentioning 1110% 2 times, it perhaps isn't a typo? I would suggest confirming with the owner/agent the title of the property you are buying ie. HP, HM, HGB. If it is leasehold you need to know how many years remain on the lease. I would also suggest contacting a good notary in your area to seek further advice and check out all of the titles/documentation.regarding the 1110% ownership we are not sure just yet if this can be transferred or if it will revert to current laws
Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.
1110%
Spicy... I agree the 1st time I read it as a typo, the 2nd time had me thinking.Originally Posted by spicyayam
simmo32, is this a typographic error, or have you been told that there is 1110% ownership in the hotel... if you have, then walk away, no..... run!
No business can be 1110% owned - foreign or Indonesian it isn't possible.
- 100% is the maximum possible.
If it isn't a typo, then the 1110% may be a reference to the number of shares issued (@ whatever price per share) and that all of the shares are in foreign ownership.
If that's the case, I'd want to know who they are held by......if multiple shareholders (husband, wife, girlfriend, some guy they met in a pub - whatever) are ALL 100% (one hundred percent) of the shares (equty) in the company are being offered for sale. You really don't want to buy 1,110 shares in a business to discover that the total shares issued are 2,221 and you've now become the proud minority shareholder in a business that is going nowhere.
Also, regarding the room rates, I'm sure your degree in tourism management tells you, to get the place back on its feet, even drop the price to get bodies in the beds. Run the place for a number of years, before you even think about increasing the rates... there will be a reason that the current owner has pegged his rates low. It might be that that's all the market niche the property is pitched at is prepared to pay. To add even $5 might take it into a price bracket above the 'price range' selected by people on the hotel booking websites & therefore not show up as an option to the target market.
cheers all,
im not too sure where the 1100% came from im pretty sure its meant to be 110% - as in full foreign ownership. but all will be looked at thoroughly.
With regards to rates, other than the 'regulars' that book with this place there is no other advertising done (would only be word of mouth) no websote, nothing???
rates wouls stay the same for quite a while but the main objective is getting the place first and getting it up to date
cheers
YES, most definitely. When we took over our guesthouse, we had to pay all the unpaid back taxes, before they would renew our licence.
I give up
don't read between the lines..i think the words are clear enough...:)
Me too
Look simmo32 THERE CAN ONLY BE 100% foreign ownership.... not 1110% or 1100% or even 110% - that is one-hundred-percent
I think maybe you have been so caught up in the 'quirks' or Indonesian/Bali regulations that you left your real-world business knowledge at the check-in counter.
From your comments here, you're going to get eaten alive
One suggestion I would make is to meet with hotel owners themselves and have a chat with them about buying and running a hotel in Bali. It probably looks like a relaxing job/business as a guest, the reality as you might imagine is quite different. 99% of customers are great, it's just dealing with the other 1% and trying to make them happy so they don't leave a bad review. I rarely write reviews, but I sometimes enjoy reading reviews of places that I know. Some people can be very cruel! Reading the reviews is also a good way to learn what people expect thesedays from accommodation.
Give a man a fish and he will eat for a day. Teach a man to fish and he will sit in a boat drinking beer all day.
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