The inspection was carried out at 4pm at the ‘Patong Hotel’ on Phra Metta Rd by a special operations unit of the Phuket Provincial Administration led by Phuket Provincial Palad (Chief Administrative Officer) Rungruang Thimabut.
Officials from the Provincial Administration, police investigators and other relevant agencies joined the operation following complaints that a foreign investment group was illegally operating a hotel at the premises.
During the inspection, authorities found that the property was operating as a hotel without the required licence.
Investigators said that the business was controlled by a Russian national who used Thai nominees as a front to lease the building and operate the hotel.
According to officials, the hotel had 83 rooms in operation, with listings placed on online hotel booking platforms to attract foreign tourists.
Mr Rungruang said the operation was part of ongoing efforts by provincial authorities to protect the livelihoods of Thai operators and maintain Phuket’s tourism image by preventing illegal foreign business activities.
The operator was initially charged with operating a hotel without a licence.
Officials are also expanding the investigation to examine potential violations related to the use of Thai nominees to hold assets on behalf of foreign investors, which is prohibited under Thai law in businesses reserved for Thai nationals.
Authorities said further legal action may follow depending on the outcome of the investigation.
Provincial officials noted that administrative authorities have direct power to supervise hotels and service establishments to ensure they comply with the law.
If evidence confirms the use of nominees to allow foreign nationals to operate restricted businesses, officials may pursue both criminal and administrative penalties.
These measures could include prosecution of those involved and possible revocation of company registration if fraudulent transactions are found, said an official report of the arrest.