Love motels are expected to fade out in the next few years, and existing operators should create a new image by offering an atmosphere like that of three- or four-star hotels.
Sarun Limsawaddiwong, the second-generation owner of the popular love motel Peep Inn Ratchada, said short-time motels faced a decline and would probably disappear from central Bangkok in the next five years.
The main reason is soaring land prices in the inner city, which have caused love motel owners to sell their places to property developers to build condominium projects.
Some motel operators have moved to the outskirts of Bangkok, where the service charge is 20% lower, with maximum fees running to 400 baht for three hours.
"New operators should think twice before entering this business, as it will take longer for their investment to break even," Mr Sarun said.
Meanwhile, existing motel operators in the inner city have been trying to adjust to the changing situation.
"Clients need something new. Themed decor such as boxing stadiums, army tanks and rainforests are not enough to help love motels survive," he said.
Mr Sarun said the motels should be upgraded to have a similar atmosphere as three- or four-star hotels, highlighting cleanliness and safety for couples.
They should scrap the dark plastic curtains that prevent anybody from seeing a car parked in front of the room, he said.
The Peep Inn Ratchada is now undergoing renovation, with the first 20 rooms to be completed by year-end and a further 40 rooms revamped next year. Sexy bathrooms will be a highlight of the new look.
A major part of the 400-room motel has already been demolished and redeveloped as a three-star hotel called the S Ratchada, targeting Chinese tourists.
The existing 150 rooms will be adjusted and merged into only 60 for a total renovation cost of 60 million baht.
The room rate will increase to 1,000 baht for three hours, up from 500 baht at the present.
Each room should be occupied five times a day instead of only two or three times, Mr Sarun said.
If the target number of customers can be reached, the Peep Inn Ratchada will show the highest profit margin compared with other hotels in its group.
Apart from the Peep Inn Ratchada, Mr Sarun converted the Peep Inn Sukhumvit Soi 33 to the S33 boutique hotel in 2011.