By Phuket News Property · January 29, 2022

Foreign buyers in Thailand often hear the term “hotel-licensed condo” used by developers or sales agents. It usually describes a condominium development that operates partly as a hotel, often offering short-term stays, rental programmes, or branded hotel management. For many buyers, the key question is whether these projects allow foreign freehold ownership.

What Is a “Hotel-Licensed Condo” in Thailand?

The phrase “hotel-licensed condo” is widely used in the market, but it is not an official legal category. Instead, it refers to a development where two separate legal structures operate together:

  • The building, or part of it, is registered under the Condominium Act and carries a condominium licence.

  • The project also holds a hotel licence that governs operations, hospitality services, and short-term rental activity.

In other words, a portion of the development is a legally registered condominium, while the overall project may function as a hotel. This dual-licence arrangement is common in resort areas such as Phuket, Pattaya, and Samui.

Why Do Some Condo Projects Have a Hotel Licence?

A hotel licence allows a development to:

  • operate legally as a hotel

  • host short-term guests

  • run hospitality-style facilities such as reception areas, housekeeping and food services

  • market the project as a hotel or resort

When combined with a condominium licence, this creates a hybrid model where some units are privately owned while the development continues operating with hotel-style services.

Can Foreigners Buy Freehold Units in These Developments?

Yes, foreigners can often buy freehold units in hotel-licensed condominium projects, as long as the following conditions are met:

  1. The building or section containing the unit is formally registered under the Condominium Act.

  2. The unit has an individual title deed.

  3. The foreign ownership quota has available space.

  4. Funds are transferred correctly from overseas to support foreign freehold ownership.

Even if the wider project has a hotel licence, foreign freehold ownership is still possible inside the condominium-licensed portion.

What Parts of a Hotel-Licensed Project Are Not Freehold?

In many hybrid developments, certain areas or units cannot be sold as foreign freehold. These may include:

  • buildings registered purely under a hotel licence

  • key operational areas such as lobbies, restaurants and service spaces

  • units designated for hotel-only use

Only the condominium-licensed sections can be individually owned.

Understanding Mixed-Use Structures

Some projects separate their legal structures clearly. For example:

  • one building is registered as a condominium

  • another building operates entirely under a hotel licence

  • facilities are shared between the two through legal agreements

Other developments blend these functions more closely. Buyers should always ask for confirmation of the legal status of the specific building or wing where their unit is located.

Why Clarity Matters for Buyers

A foreign buyer does not purchase a “hotel-licensed condo” as a single unified concept. Instead, they purchase:

  • a condominium unit with a title deed;

  • inside a development that may also have a hotel licence;

  • with operational rules that differ from a traditional residential condo.

This distinction affects ownership rights, rental options, and how the building is managed.

Key Questions to Ask Before Buying

Foreign buyers should confirm:

  • which parts of the project have a condominium licence

  • whether the specific unit is in a condo-licensed or hotel-licensed section

  • whether the foreign quota is available for this unit

  • the management structure and any rental programme requirements

  • whether common areas fall under condominium or hotel regulations

Clear documentation prevents misunderstandings and protects the buyer’s position.

Why Developers Use the Term “Hotel-Licensed Condo”

The phrase is primarily a marketing term. It signals that the project combines:

  • hotel-style operation

  • condominium ownership

  • structured rental programmes

  • shared facilities between hotel and condo sections

However, the legal reality is always based on the underlying licences and the building’s registered status, not the marketing label.

Final Thought

Foreigners can buy freehold units in hotel-licensed condo projects, but only when those units are part of the condominium-licensed section of the development. Buyers should always verify the building licences, unit title status, and quota availability to ensure they are purchasing genuine freehold ownership.