Bangkok Cracks Down on Illegal Condo Hotels
Thai authorities are intensifying their efforts to combat the burgeoning illegal daily rental market in condominium buildings, primarily targeting those operating as unlicensed hotels. A coordinated sting operation on March 6, 2025, led to arrests and charges in Bangkok, exposing a widespread network of illicit accommodations and highlighting a growing challenge for Thailand’s hospitality sector.
In a meticulously planned operation in Bangkok’s Pratunam area, undercover agents from the Investigation and Legal Affairs Office, posing as tourists, booked two rooms through an undisclosed popular application. They secured rooms 1001 and 914 for a single night at a rate of $82.40 USD per room. Upon arrival at 2:00 PM, they were met by an individual who escorted them to the rooms using keycards. The furnished rooms, equipped like standard hotel rooms, provided concrete evidence of illegal hotel operations, directly violating Thailand’s hotel laws.
Mr. Chaiwat Junthirapong, Director-General of the Administrative Department, who oversaw the operation, revealed that three additional room keys were found in the escort’s possession. This further solidified the case against the room owners and those involved. Evidence was collected, and a formal complaint was filed with investigators at the Phaya Thai Police Station, paving the way for legal action against the unlicensed operators.
Simultaneously, in Bangkok’s Huai Khwang-Sutthisan area, a parallel operation led by legal expert Mr. Ratthawich Jitsujaritwong uncovered three unlicensed daily rental establishments: The Athena, The Oasis, and Chang, collectively offering hundreds of rooms for daily and monthly rentals. Inspections were conducted, arrests made, and complaints filed with the Sutthisan Police Station.
The problem extends beyond the capital. Dr. Sitthipong Sitthipattraprapha, President of the Hat Yai Hotel Association in Songkhla Province, highlighted the growing trend of condominium investments specifically for daily rentals in Songkhla, fueled by Thai and foreign investors, particularly from Malaysia. He categorized the illegal operators into three groups: individual condo owners or monthly tenants subletting daily; owners of houses and villas offering daily rentals; and monthly apartment buildings also engaging in daily rentals. Dr. Sitthipong emphasized the unfair competitive advantage these operators enjoy by avoiding taxes and permit requirements imposed on legitimate hotel businesses, disrupting the market with significantly lower operating costs. A staggering 400 such operators were identified in Hat Yai district alone, a number projected to rise without effective intervention.
Mr. Chaiwat underscored the legal ramifications, citing the Hotel Act of 2004, which stipulates penalties including imprisonment, substantial fines, and additional daily fines for continued violations. He also revealed ongoing investigations into suspected nominee systems involving foreign investors circumventing ownership restrictions. The Administrative Department is actively reviewing and updating relevant laws to address these evolving challenges.
The issue reached the national stage when Bangkok MP Karunphon Thiansuwam raised an urgent question in parliament about foreign nationals engaging in illegal daily rentals. Deputy Interior Minister Theerarat Samretwanich confirmed the illegality of these operations and outlined collaborative efforts between government agencies to address the problem. She stressed the government’s commitment to enforcing existing laws and the importance of cooperation between residents, condominium juristic persons, and authorities.
Ms. Theerarat clarified that while condominium owners can legally rent their properties, the minimum rental period must exceed one month. She acknowledged the need for greater awareness among residents and juristic persons regarding their rights and responsibilities, and for updated regulations to reflect the current situation. The government is also reviewing the existing 49% limit on foreign ownership of condominium units, with the possibility of reducing this percentage.
The crackdown on these illegal rental operations signifies a concerted effort by Thai authorities to protect the integrity of the hospitality industry, ensure fair competition, and uphold the rule of law. The government’s commitment to reviewing existing legislation and increasing public awareness signals a long-term strategy to address this complex and growing issue.
