Phuket’s property market has seen a surge in demand from international buyers, and among the most attractive options for foreign investors are freehold hotel-licensed condominiums. These “condotels” offer a unique hybrid of legal ownership, short-term rental potential, and hassle-free management — all within the backdrop of one of Southeast Asia’s most desirable destinations.

But what exactly are hotel-licensed condos? And how do they benefit foreign buyers seeking a slice of paradise with income potential?

What Is a Hotel-Licensed Condominium?

A hotel-licensed Phuket condominium, often referred to as a “condotel,” is a condominium building that has obtained a hotel license from the Thai government. This license permits short-term (daily or weekly) rentals, something that is otherwise restricted in standard residential condominiums under Thai law.

These projects are typically managed like hotels, offering professional property management, guest services, and rental programs. As a buyer, you legally own your unit (often as a foreign freehold), while the management company handles bookings, maintenance, and operations.

Legal Ownership for Foreigners

Foreign nationals can legally own condominium units in Phuket in their own name under the foreign freehold quota (up to 49% of a project’s total floor area).

Buying a hotel-licensed unit within this quota provides the peace of mind of full ownership along with the income-generating benefits of a licensed short-term rental operation. Ownership is registered at the Phuket Land Office and backed by a Chanote title deed.

Benefits of Owning a Hotel-Licensed Condo in Phuket

1. Legal Short-Term Rentals

Only properties with a hotel license can legally offer daily or weekly rentals. This makes condotels ideal for buyers wanting to generate income from tourists.

2. Passive Income Opportunities

Many condotels offer guaranteed rental returns (e.g., 6-7% annually for 3-5 years) or shared revenue rental pools.

3. Fully Managed Properties

No need to manage guests, cleaners, or repairs yourself. Everything is handled by a professional operator, ensuring stress-free ownership.

4. Personal Use Benefits

Owners can typically enjoy free stays in their unit for a set number of days per year, combining investment with holiday convenience.

5. Prime Phuket Locations

Most hotel-licensed condominiums are built in Phuket’s most popular areas for tourists and property investors — such as Kamala, Kata, Patong, and Chalong.

What to Look for When Buying a Phuket Condotel

  • Confirm the hotel license is active and applies to the entire building
  • Check if the unit is available under the foreign freehold quota
  • Understand the rental program structure (guaranteed vs. shared revenue)
  • Review personal usage terms – how many days you can stay per year
  • Research the developer and management company’s track record

A Great Option for Foreign Investors

Hotel-licensed condominiums offer an appealing entry point for foreign investors who want:

  • Secure and legal property ownership in Phuket
  • Reliable rental income from the booming tourism sector
  • Minimal involvement in daily property operations
  • Flexibility to enjoy the unit personally throughout the year

With Phuket’s real estate market continuing to thrive and tourist arrivals growing steadily, condotels present one of the most practical and profitable ways for foreigners to invest in paradise.

FAQ – Phuket Condotel Ownership

Q: Can foreigners legally rent out condotel units short-term?
A: Yes. As long as the building has a valid hotel license and the unit is within the foreign ownership quota, short-term rentals are legal.

Q: How much personal use do I get with a condotel?
A: Most developers allow 15 to 45 days of free stay per year, but it varies by project.

Q: Are condotels a better investment than standard condos?
A: If you’re seeking rental income from tourists, condotels offer legal short-term letting and hands-free management, making them ideal for passive investors.

Q: Do I have to pay taxes on rental income?
A: Yes, rental income earned in Thailand is subject to Thai taxation. A local accountant or lawyer can help you stay compliant.

Q: Is it better to buy in a popular area?
A: Yes. Areas like Patong, Kamala, Kata, and Chalong tend to have higher occupancy rates and stronger rental returns.

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