Case Update - 29 February 2016

 

Siam City Law Offices Limited advised an accommodation renting company on the unique issue of the “sale of a 30-day package” to their clients. The important aspect of this matter is that the sale of the membership package stay for 30 non-consecutive days at the property is being interpreted as ‘operating a hotel business’, and the renting company is clearly not in that business.

The applicable law relating to this issue is the Hotel Act (the “Act”) and the Ministerial Regulations (the “Regulations”).

 

It was important to advise the client that their membership sales do not come with the description provided as operating a hotel business; hence, advising them to change the wording of the sales package as the “sale of membership package” with the stipulated duration of time and the relevant period for the membership purchase.

 

A further issue that was raised in this line of thought was that the number of rooms have to be at least of a certain number the right number in order to be classified as the operation as a hotel, as well as the issue of renting out ‘individual condominiums’ on a daily rate through any renting agents; and if this would breach the Act. This is an interesting point made and, pursuant to the Building Control Act, condominiums and hotels have different purposes and, therefore, the renting of an ‘individual condominium’ on a daily rate basis does not come within the definition of a hotel (because it is less than four rooms).

 

This interesting overlap between hotel and condominium matters was advised by our Partner Khun Vira Kammee and assisted by Thiti Homjabok.

 

 

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