They tend to prefer the high-rise glamour of the Melia Hua Hin Hotel next door, though Thai families do enjoy the bungalows on the Sofitel's adjacentproperty, called Central Hua Hin Village (Central comes from the hotel's management by the Central Group).
On the other hand, residential and commercial streets could be more easily devolved via some form of homesteading by adjacentproperty owners, a possibility Walter Block has discussed in The Privatization of Roads and Highways, with its voluminous references to the history of private provision of roads.
In my jurisdiction part of the permitting process is also acquiring permission from riparian, fishing, and adjacent parties to the property for which it is located.