Condotels and Hotel-Licensed Condominiums in Phuket

A Condotel is a hybrid species of Phuket real estate combining the services of a hotel and a condominium. It is a common concept in other parts of the world, which permits individual units to be privately purchased, and then rented as hotel accommodation. In short, this type of ownership is for anyone purely interested in investment, not for someone seeking a second home or a personal holiday retreat.

For investors interested in foreign freehold property ownership in Phuket, Condotels present an attractive legal option. The owner of a Condotel unit may rent it out on a monthly, weekly, or even daily basis. (For anyone who has followed the restrictions being placed on Airbnb by cities and countries around the world, this is a huge advantage for any property investor.)

A hotel management company is typically employed to run the resort, and these companies all have attractive rental programs. The owner is usually allocated a fixed number of days per year to use their unit, but for the remainder of the time the management company treats the unit as a normal hotel room. Under most arrangements, they also take care of maintenance and repairs to the unit.

Most Phuket Condos set up with hotel licenses offer either a guaranteed return or the option to enter into a “rental pool,” which requires the owner to make their unit available for rental (together with the other participating owners). The owners then “pool” the rental income, and share together in the profits.

The attraction of a Condotel investment for a foreigner is obvious. Firstly, they are permitted to own a Phuket freehold condominium unit in perpetuity. Secondly, they are legally allowed to have the rental of their unit managed for them by a professional hotel management company. They can therefore take advantage of Thailand’s flourishing real estate sector, while simultaneously capitalising on Phuket’s booming tourism industry. At the same time, they can also enjoy “free” accommodation in Phuket for a few weeks every year.

To function effectively as a condo, as well as a hotel, a Condotel development should apply for commercial use on day one. It is theoretically possible for the juristic person at a condominium to allow (or at least condone) short-term rentals, effectively “commercialising” the condo for use as a Condotel. If the juristic person chooses to allow this, the agreement of the owners is not required. But to apply for the hotel license, thus officially making the development into a Condotel, not only must the juristic person agree, but this legal commercialisation of the common area also requires the assent of 100% of the owners.

It is unfortunate that many Phuket condominium projects were rushed into development without first contemplating their use as a hotel. Shorter-term rentals (e.g. daily and weekly) are technically illegal in Thailand without a hotel license, yet many condominium developments offer guaranteed returns based largely on the short-term rental market.

It is also possible that many of the people profiting from short-term rentals are not paying tax on their income. Anyone who gets to know Thailand soon understands that nothing is a problem until lawmakers decide to take action. In other words, everything is OK… until it isn’t.

If Phuket should experience a slowdown in tourism, hoteliers may campaign in strength for an end to illegal short-term rentals. Any development already run with a hotel license would of course be immune from the potential backlash. So, if hoteliers were successful in any such campaign against short-term rentals, Condotels, especially those offering foreign freehold property ownership in Phuket, would profit right along with them.

You can read more about the situation with short term rentals in our article on the subject here: 

An Overview on the Current Situation of Short-Term Rentals in Phuket 2025

Branded Residences and Foreign Freehold Property Ownership in Phuket

Phuket’s luxury real estate market also offers a unique hybrid of hotel living and investment property that can be owned freehold by foreigners. While some branded residences in Phuket are private villas, many are legally structured as condominiums, allowing foreign freehold property ownership in Phuket under the Condominium Act.

The appeal for high-net-worth investors is clear: ownership in a residence managed to the exceptional standards of a world-class 5-star hotel brand, often with access to a rental pool program if the owner is not living on site. Buyers enjoy the prestige, service, and design synonymous with luxury hospitality, combined with the convenience of fully managed property maintenance.

Globally, the popularity of branded residences has surged over the last two decades. While the USA holds roughly one-third of the world’s total, there are now more than 50,000 branded residence units across 400 developments worldwide.

The concept dates back to 1927 when the Sherry-Netherland Hotel opened on Fifth Avenue in New York. Although other examples followed, the sector truly regained momentum in the 1980s, when Four Seasons launched condominiums alongside its Boston hotel. Phuket joined this elite market soon after with the Amanpuri, which transformed the concept with its tropical resort setting.

In the last 30 years, over 70 hotel groups have entered the branded residence market. Notably, the boom periods for these developments, the 1920s, the 1980s, and today, have all coincided with global surges in wealth creation.

According to UBS’s Global Wealth Report 2025, there are now over 60 million millionaires worldwide, and Forbes estimates nearly 2,800 billionaires. In the last decade alone, these numbers have more than doubled.

This rising wealth is excellent news for Phuket’s branded residences. Priced above traditional condominiums, they deliver unmatched value through world-renowned architecture, exquisite interior finishes, exceptional resort amenities, and breathtaking views. The hotel brand association not only helps them command premium sales prices but also ensures strong rental demand at top market rates.

In Thailand, branded residences have proven especially popular with wealthy domestic buyers. In Phuket, where up to 49% of a condominium development can be sold freehold to foreigners, the remaining 51% is often eagerly taken up by Thai investors. This demand suggests the luxury condominium sector will continue expanding Phuket’s collection of branded residence investment opportunities that align perfectly with the benefits of foreign freehold property ownership in Phuket.

The first branded residence in Thailand was the iconic Amanpuri in Phuket, which redefined the concept by combining luxury hotel services with private ownership in a tropical resort setting. Its success set the stage for Phuket to become one of Asia’s leading destinations for this type of investment.

Over the past three decades, the sector has expanded rapidly, with more than 70 global hotel brands now offering branded residences worldwide. The timing of each growth surge, from the 1920s origins, to the 1980s revival, to today’s unprecedented expansion, has coincided with significant global wealth creation.

According to UBS’s Global Wealth Report 2024, there are now 58 million millionaires and almost 2,800 billionaires worldwide. Both figures have more than doubled in the last decade, signalling a deepening pool of buyers with the resources and appetite for high-end branded property.

This demographic shift is excellent news for Phuket’s branded residences. While priced above conventional condominiums, they offer exceptional value for money through world-class architecture, bespoke interior design, and meticulous attention to detail. In Phuket, these residences are often set within lush resort grounds, featuring outstanding amenities and spectacular sea views.

The prestige of a luxury hotel brand not only drives higher resale values but also ensures consistent rental demand at premium rates. This dual appeal, as both a lifestyle investment and an income-generating asset, makes them an attractive option for foreign freehold property ownership in Phuket as well as for wealthy Thai investors.

In a Phuket condominium project, up to 49% of the units can be sold foreign freehold, with the remaining 51% typically absorbed by domestic buyers. With strong demand from both Thai and foreign investors, the luxury condominium market in Phuket is set to deliver more branded residence projects, blending five-star living with secure foreign freehold property ownership in Phuket.