Hotel Due Diligence & Compliance Review in Thailand

Investing in or acquiring a hotel in Thailand requires more than evaluating its financial performance or physical condition. Hospitality businesses must comply with a broad regulatory framework involving land use, licensing, environmental requirements, zoning restrictions, and operational duties. BASE Law Firm provides thorough legal due diligence services to ensure that hotels (both existing and under development) meet all statutory requirements before purchase, development, or rebranding.

Our service include:

Land-title verification review
Zoning and land-use checks
Construction permit compliance
Hotel-license eligibility assessment
Contract and structure auditing
Full risk-analysis reporting

Why Legal Due Diligence Is Critical for Hotel Investments

Hotels in Thailand are subject to a unique combination of commercial, property, administrative, and hospitality-specific regulations. A failure to identify even one area of non-compliance can lead to:

Delays in opening or operating
Penalties or forced closure
Difficulties transferring ownership
Unexpected financial liabilities
Inability to apply for required hotel operating licenses

To prevent these risks, a structured legal review is essential before acquisition or development begins.

Our Focus Areas in Hotel Compliance Assessments

1. Property Title & Land Use Verification

Before any development or transaction, we review:

Type of land title (Chanote, Nor Sor 3, etc.)
Permitted land use under zoning laws
Existing encumbrances or third-party rights
Restrictions relating to coastal or environmentally sensitive areas

This establishes whether the hotel can lawfully operate or expand on the site.

2. Construction & Development Legality

If the hotel is under construction or newly completed, we examine compliance with construction regulations, including:

Building permits
Environmental impact requirements
Fire safety and structural compliance
Factory or machinery permits, if applicable

We identify whether all documentation was properly issued and if any irregularities may block later licensing.

3. Hotel Licensing Requirements

A hotel cannot lawfully operate in Thailand without the appropriate hotel license, except under very limited exceptions. We assess:

Eligibility under the Hotel Act
Required building classification
License status and history
Pending or potential compliance issues
Ministerial regulations affecting hotel size, category, or building type

If the hotel is unlicensed, we outline the exact steps necessary to bring it into compliance.

4. Operational Contracts & Business Structure

Hotels often operate through complex contractual arrangements. We review:

Management and operations agreements
Franchise or brand agreements
Lease arrangements
Service provider contracts
Employment compliance under Thai labor law

Our objective is to identify obligations, risks, and any terms that may hinder transfer of ownership or operations.

5. Corporate & Financial Due Diligence

For acquisitions involving shares or business restructuring, we examine:

Corporate registration documents
Shareholder and director structures
Accounting records and tax compliance
Outstanding liabilities, litigation, or administrative penalties

This provides buyers with a full picture of the hotel’s operational health and potential exposures.

Why Work With BASE Law Firm?

Industry-Specific Legal Knowledge

Our team is experienced in hospitality-sector regulations, enabling us to identify issues that general due diligence may overlook.

Comprehensive, Practical Reporting

We produce clear, actionable reports detailing compliance status, risks, and recommended solutions—empowering investors and developers to make informed decisions.

Cross-Functional Advisory Support

Beyond due diligence, we assist with:

Hotel license applications
Ownership structuring
Contract negotiation
Foreign-ownership considerations
Ongoing compliance and regulatory updates

Strategic Guidance for Investors, Developers & Operators

We work closely with hotel owners, real-estate developers, foreign investors, and management companies, ensuring every transaction is supported by sound legal analysis and practical solutions.

Typical Engagements We Handle

Reviewing legal and zoning compliance for hotels prior to acquisition
Verifying legality of land use for resort developments
Conducting full legal audits of hotel portfolios for investors
Supporting licensing and regulatory approvals for newly built hotels
Assessing risks in franchise or hotel management agreements

How We Deliver Our Services

Consultation & Scoping

We begin with a detailed discussion to understand the project’s size, intended use, and transaction structure.

Document Collection & Legal Review

Our team reviews all relevant permits, titles, contracts, tax records, and corporate documents.

Site-Specific Evaluation

We identify regulatory issues that affect hotel operation, classification, or licensing viability.

Final Reporting & Recommendations

We deliver a clear legal assessment, highlighting issues, solutions, and steps required to achieve full compliance.

Ongoing Support

If desired, we continue to assist through licensing, negotiation, restructuring, or operational compliance.

Speak With Our Hotel Due Diligence Team

If you are planning to purchase, develop, or operate a hotel in Thailand, BASE Law Firm provides the comprehensive legal assurance needed to protect your investment and ensure regulatory compliance.