Hotels become cheap enough to buy during COVID-19

Though receiving some guests during the April holiday, hotels are still not doing well. Some have had to close and others are operating at a moderate level.

According to the Khanh Hoa provincial Tourism Department, the hotel room occupancy rate was 2.81 percent in the 4-day April holiday, while it was 82.75 percent last year.

Hotels become cheap enough to buy during COVID-19

A four-star hotel in HCM City



Le Van Son, CEO of Liberty Central Nha Trang, said the hotel can maintain operation with the occupancy rate of 15-17 percent. Its guests are domestic travelers and some foreign travelers who cannot return home because of Covid-19. Though the hotel has applied measures to cut costs, problems still exist.

“The market remains very quiet and it will only see changes in 1-2 months. We are offering best discounts to lure travelers,” he said.

The hotel is offering a service package with the discount of up to 70 percent. Travelers pay VND550,000/night per person for 3-day-and-2-night services, which include one day of touring four islands, two breakfast buffets, one lunch on island and one dinner.

CBRE Vietnam said since the beginning of Q2, the firm has noticed an increase in desire to purchase hotels which are facing problems in cash flow. It also noted that there are no 4-5-star hotels up for sale.

According to Son, who is also deputy chair of the Nha Trang – Khanh Hoa Tourism Association, only 10 percent of hotels in Nha Trang still is operational.

 


The situation seems to be better in Phan Thiet, with 70-80 percent of hotels and resorts having resumed their operation. However, hoteliers remain very cautious when talking about the market prospect.

“There still have not been many optimistic signs from the domestic market after the April holiday,” said Nguyen Van Khoa, CEO of Mui Ne Bay Resort in Binh Thuan.

“The international market remains stagnant. Some partners still hold contracts, but it’s not clear when they will send guests again,” he said.

The market is also frozen in HCM City. Hoteliers would feel happy with just 10 percent of occupancy rate. A lot of accommodation facilities still cannot reopen after a long time of closure.

According to CBRE Vietnam, the hotel room occupancy rate in HCM City was 42 percent in Q1, while the revenue per room dropped by 47.9 percent compared with the same period last year.

Time to hunt for hotels

CBRE Vietnam said since the beginning of Q2, the firm has noticed an increase in desire to purchase hotels which are facing problems in cash flow. It also noted that there are no 4-5-star hotels up for sale.

This is because the owners of the hotels are large groups with plentiful capital which allowed them to overcome the Covid-19 crisis.

A 4-star hotel with 100 rooms in good position in Nha Trang City can be sold at VND200 billion or less.

“It’s now the time to buy. The price could be 20 percent lower,” a broker said.

Kim Chi 

In Vietnam, hotels are being sold as owners take losses amid Covid-19

In Vietnam, hotels are being sold as owners take losses amid Covid-19

Many owners cannot maintain operation of their hotels during the epidemic and want to sell them.

Most hotels and resorts to reopen this month with attractive promotions

Most hotels and resorts to reopen this month with attractive promotions

Most hotels and resorts in Vietnam would resume operations in May with attractive promotions as the country was entering its post-pandemic recovery, Mauro Gasparotti, director of Savills Hotels Asia Pacific said.

 
 

Other News

.
Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
BUSINESSicon  03/07/2020 

Chubb Life Vietnam has been recognized as one of the “Best Companies to Work for in Asia 2020” by HR Asia, the continent’s leading publication for Human Resources professionals.

Predatory debt collectors hustling on borrowed time
Predatory debt collectors hustling on borrowed time
BUSINESSicon  02/07/2020 

Debt-collecting businesses are to be banned in Vietnam as part of local government action to protect customers’ rights, with the upsurge of predatory lending services triggering heated debate and eroding public trust.

RCEP benefits on horizon for ASEAN
RCEP benefits on horizon for ASEAN
FEATUREicon  02/07/2020 

With the Regional Comprehensive Economic Partnership scheduled to be signed this November, doors will soon open to attract more investment and swell Vietnam’s trade with international partners.

An abundance of advantages to diversify ops into Vietnam
An abundance of advantages to diversify ops into Vietnam
BUSINESSicon  02/07/2020 

Amidst the new wave of foreign investment and relocation after the pandemic, director general of the Foreign Investment Agency Do Nhat Hoang explained Vietnam’s outstanding advantages and how it can seize arising opportunities.

Vietnam closes in on tech app tax avoiders
Vietnam closes in on tech app tax avoiders
BUSINESSicon  02/07/2020 

Apple and Google are once again under fire over tax avoidance in Vietnam, with none of their revenues from their app markets being retained in the country. However, a new law could soon enable local authorities to take their cut.

Drugmakers fight to attain approval
Drugmakers fight to attain approval
BUSINESSicon  02/07/2020 

Switzerland’s drug maker Novartis Pharma Services AG has announced a GMP qualification for Lek Pharmaceuticals d.d. within the scope of certification for medicines in Vietnam,

PouYuen lays off thousands  due to Covid-19 difficulties
PouYuen lays off thousands due to Covid-19 difficulties
BUSINESSicon  02/07/2020 

More than 6,000 workers of the Taiwanese company, PouYuen, in HCM City have been laid off due to the company's business difficulties during the Covid-19 pandemic.

Fitch Solutions revises up Viet Nam’s 2020 GDP growth
Fitch Solutions revises up Viet Nam’s 2020 GDP growth
BUSINESSicon  02/07/2020 

Fitch Solutions have revised up its 2020 real GDP growth forecast for Viet Nam slightly to 3.0 per cent, from 2.8 per cent previously.

Zalo Bank not licensed by SBV and MoIT
Zalo Bank not licensed by SBV and MoIT
BUSINESSicon  02/07/2020 

The State Bank of Vietnam (SBV) and the Ministry of Industry and Trade have affirmed that they have not licensed Zalo Bank to provide online built-in financial services.

EVFTA to come into effect in a month
EVFTA to come into effect in a month
BUSINESSicon  02/07/2020 

The EVFTA will abolish 65 per cent of the duties on EU exports to its developing partner, with the remainder phased out over a 10-year period.

Footwear sector to improve supply chain to take advantage of EVFTA
Footwear sector to improve supply chain to take advantage of EVFTA
BUSINESSicon  02/07/2020 

Vietnam’s leather and footwear industry should improve its supply chain performance to take advantage of the milestone trade deal that Vietnam has signed with the EU and to recover from the effects of the COVID-19 crisis, 

World Bank Vietnam has new head
World Bank Vietnam has new head
BUSINESSicon  02/07/2020 

From July 1, Ms. Carolyn Turk will work at the World Bank (WB) Hanoi office as its country director in Vietnam, according to the office.

China maintains position as Vietnam's largest import market
China maintains position as Vietnam's largest import market
VIDEOicon  02/07/2020 

Despite the first half of the year seeing Vietnamese export turnover to China only reaching a mere US$34.8 billion, China retained its place as the country’s largest import market, according to the General Statistics Office.

VN's rice exports bounce back after one-month interruption
VN's rice exports bounce back after one-month interruption
BUSINESSicon  03/07/2020 

While exports of many products have plunged because of Covid-19, rice exports are growing, with prices of some products reaching an 8-year high.

Will demand for corporate bonds become weaker because of a new law?
Will demand for corporate bonds become weaker because of a new law?
BUSINESSicon  02/07/2020 

Under the amended Enterprise Law ratified by the National Assembly on June 17, nonprofessional investors are prohibited from trading corporate bonds issued in private offerings from January 1, 2021.

Retail industry to face being "swallowed" once EVFTA comes into force
Retail industry to face being "swallowed" once EVFTA comes into force
BUSINESSicon  02/07/2020 

With the implementation of the EU-Vietnam Free Trade Agreement looming, besides providing opportunities, the Vietnamese retail market is anticipated to face numerous challenges, 

Vietnam sees greater budget transparency
Vietnam sees greater budget transparency
BUSINESSicon  01/07/2020 

Vietnam’s Open Budget Index (OBI) increased rapidly in 2019 compared to 2018, according to a survey released on July 1.

Vietnam to create “Miracle on the Red River” with implementation of Doi Moi 4.0
Vietnam to create “Miracle on the Red River” with implementation of Doi Moi 4.0
BUSINESSicon  01/07/2020 

The Vietnamese Government has made bold and reasonable decisions to fight against the COVID-19 pandemic and be proactive with comprehensive initiatives for economic recovery.

Administrative reforms would help unlock EVFTA's potential: EuroCham
Administrative reforms would help unlock EVFTA's potential: EuroCham
BUSINESSicon  01/07/2020 

 Administrative procedure reform is the key to unlocking the full potential of the Europe-Viet Nam Free Trade Agreement (EVFTA), said participants at a conference on Tuesday.

Nation’s economic forecast leads way
Nation’s economic forecast leads way
BUSINESSicon  01/07/2020 

With its success in fighting COVID-19, Vietnam has continued to be the best performer in Southeast Asia, laying a firm foundation for the country to attract more investment and spur on production.

 
 
 
Leave your comment on an article

OR QUICK LOGIN