Tourism to boost hotel real estate segment in Vietnam

Viet Nam's growing tourism industry and thriving economy have drawn interest in the country's hotel and resort market from investors across the region, making Viet Nam one of the most talked about markets in Asia Pacific.

According to Jones Lang Lasalle Property (JLL), the industrial renaissance has driven corporate demand for hotels across the country, while visa exemptions, new direct air routes and improved marketing have boosted the country’s appeal to leisure travellers.

Like much of Southeast Asia, leisure demand has been driven by mainland Chinese tourists which hit a record last year in terms of arrivals growth.

Last year, Viet Nam received 15.5 million international tourists, up 19.9 percent over 2017, according to the Vietnam National Administration of Tourism (VNAT).

The number of international visitors to Viet Nam this October hit 14.5 million, 13 per cent higher than the same month last year.

As the three biggest economic and tourism hubs, HCM City, Ha Noi and Da Nang, see the tourist growth during the year and they also report the construction of more hotel rooms to serve demand.

By September, HCM City's tourist arrivals grew 14.3 per cent compared to the same time last year. This year, the city has recorded 1,114 new hotel rooms, lifting overall supply to 20,200. By the end of 2021, its supply is forecast to hit 22,000 rooms, 55.4 per cent of which will be in the upscale segment.

Tourist arrival growth in Ha Noi was 9.5 per cent up to September. In the fourth quarter this year, 1,008 rooms will be added to the capital city’s hotel landscape, increasing total supply to 18,699 rooms, with approximately 97 per cent of the new supply in the midscale and upscale segments.

By the end of 2021, Ha Noi will have more than 20,400 rooms with approximately 59.8 per cent in the upscale segment.

With tourist growth of 26.1 per cent by this July, during 2019-21 Da Nang expects to add 9,479 rooms to current supply, of which 81.8 per cent are projected to be in the upscale and midscale segments.

More investment in hotels, different investor tastes

Thanks to tourism and economic growth, the hotel transaction market in Viet Nam has had a busy year.

 

According to realty experts, in Viet Nam foreign investors are seeking investment opportunities with higher returns in operating hotel assets with in-place cash flow, while most domestic investors want to develop hotels and resorts from vacant land banks.

Some outstanding transactions in the market this year include Ho Tram Grand Strip resort's sale sold to Warburg Pincus investment fund, while Berjaya Group transferred 75 per cent of TPC Nghi Tam Village's shares to the Hanoi Hotel Tourism Development Co., Ltd.

TPC Nghi Tam Village owns the Intercontinental Hotel in Ha Noi with a value of more than $53.4 million.

On November 7, IHG (InterContinental Hotels Group) signed agreements with Ho Tram Project Company Limited (HTP) to rebrand The Grand Ho Tram at the Ho Tram Strip integrated resort to InterContinental Grand Ho Tram within a year.

Serena Lim, Vice President, Development for IHG South East Asia & Korea, commented: "As international and domestic travel continues to grow, the expansion of the property and facilities puts us in a great position to provide different experiences for a diverse group of guests."

JLL has also consulted a 5-star hotel transaction in Nha Trang City, Khanh Hoa Province recently.

Vo Quoc Phuong Trang, Vice President, JLL Hotels & Hospitality Asia Pacific told Viet Nam News: “In Viet Nam, realistically, selling price is more expensive than this given the amount of capital there is to be allocated to the market, especially from those still able to achieve cheap corporate debt from 2 per cent to 4 per cent in countries such as Japan, Korea, Hong Kong and Singapore.

"In the current market situation, the yield recorded in successful transactions could be compressed to 7-8 per cent dependent on the asset types and investment strategy.

"It is notable that the 8 per cent is lower than the loan in Viet Nam though and hence why most local groups focused on development where returns may be higher.”

JLL said while Ha Noi and HCM City are expected to remain as the top two cities on the radar, coastal cities Da Nang and Nha Trang are the two next hot spots set to attract investors. — VNS

Hanoi, HCMC are top picks for hotel investment in Vietnam

Hanoi, HCMC are top picks for hotel investment in Vietnam

Foreign investors are actively seeking investment opportunities with higher returns in Vietnam via operating hotel assets with in-place cash flow.

Online hotel booking in Vietnam a hot market

Online hotel booking in Vietnam a hot market

The owners of some private hotels in Hanoi and HCMC say their monthly revenue in the past was VND60-80 million. Later, RedDoorz and OYO, the two online booking platforms, asked for cooperation, promising to pay 150 percent of the revenue.

 
 

Other News

.
Vietnam-China bilateral trade: overcoming chronic weaknesses
Vietnam-China bilateral trade: overcoming chronic weaknesses
FEATUREicon  19/07/2021 

According to data from the Vietnam General Department of Customs, Vietnam’s total import-export value by June 15, 2021 had reached US$288.68 billion, up 33%, or $71.55 billion, year on year.

HCM City faces severe shortage of vegetables, eggs
HCM City faces severe shortage of vegetables, eggs
BUSINESSicon  19/07/2021 

Vegetables and eggs are in short supply in HCM City due to disruptions in supply chains caused by COVID-19.

Vietnam named among world’s top 20 host economies for FDI for first time
Vietnam named among world’s top 20 host economies for FDI for first time
BUSINESSicon  19/07/2021 

Vietnam was named among the world’s top 20 host economies for foreign direct investment (FDI) for the first time in 2020 with an inflow of 16 billion USD.

Major transport projects to get underway this year, others to be completed
Major transport projects to get underway this year, others to be completed
BUSINESSicon  18/07/2021 

The Ministry of Transport plans to begin work on nine major infrastructure projects in the south this year to reduce traffic congestion and improve connectivity.

Support for businesses vital for economic recovery
Support for businesses vital for economic recovery
BUSINESSicon  18/07/2021 

During the current ongoing Covid-19 pandemic, it is of utmost importance that government authorities introduce policies that provide maximum support to keep businesses afloat, and sustain the economy as well.

Many hotels in HCMC increase room capacity
Many hotels in HCMC increase room capacity
BUSINESSicon  18/07/2021 

Many hotel owners in Ho Chi Minh City yesterday said that the number of booked hotel rooms has increased from 10 percent to 20 percent.

Hanoi targets GRDP growth up to 7.5% in 2021
Hanoi targets GRDP growth up to 7.5% in 2021
BUSINESSicon  18/07/2021 

Hanoi will take advantage of a shift in investment capital worldwide to attract foreign direct investment into the city.

ASEAN, Czech Republic look to standardise customs procedures
ASEAN, Czech Republic look to standardise customs procedures
BUSINESSicon  18/07/2021 

The Association of Southeast Asia Nations (ASEAN) Committee in coordination with the Customs Administration of the Czech Republic has held a webinar to introduce the electronic customs of the European country.

SBV allows banks to expand credit room
SBV allows banks to expand credit room
BUSINESSicon  18/07/2021 

The State Bank of Viet Nam (SBV) has just officially approved credit room extension for some banks.

Live streamers compelled to register with MIC if new draft decree adopted
Live streamers compelled to register with MIC if new draft decree adopted
BUSINESSicon  18/07/2021 

The Ministry of Information and Communications has proposed that only licensed social networking sites and accounts should be allowed to livestream to generate revenue.

VIETNAM BUSINESS NEWS JULY 18
VIETNAM BUSINESS NEWS JULY 18
BUSINESSicon  18/07/2021 

Over 425 million tonnes of cargo handled at seaports in seven months

Vietnamese top list of most online shoppers in SEA
Vietnamese top list of most online shoppers in SEA
BUSINESSicon  17/07/2021 

Vietnam has the highest number of people shopping on e-commerce platforms in the Southeast Asia region with some 49.3 million people, according to the E-commerce White Book 2021 released by the Vietnam E-Commerce and Digital Economy Agency.

Vietnam ‘promised land’ for digital banking
Vietnam ‘promised land’ for digital banking
BUSINESSicon  17/07/2021 

Vietnam is among the regional countries that are seeing new digital bank models, experts have said.

Textile and garment makers seek multitude of options
Textile and garment makers seek multitude of options
BUSINESSicon  17/07/2021 

As the current outbreak of the pandemic remains complicated, textile and garment makers fear lasting impacts on their operations, 

Bumps ahead for the giants of transport
Bumps ahead for the giants of transport
BUSINESSicon  17/07/2021 

After enduring months of losses, state-owned transport giants Vietnam Railways and Vietnam Airlines are pinning hopes on a financial lifebuoy to recover from the incurred losses – but even significant support may not be enough for them.

Tardy public spending will hinder post-pandemic economic recovery
Tardy public spending will hinder post-pandemic economic recovery
BUSINESSicon  17/07/2021 

The COVID-19 health crisis and the resulting economic downturn has thrown a spanner in the works of already tardy public spending, hindering Vietnam’s efforts to revive its post-pandemic economy and speed up slowing GDP growth.

Vietnam moving out of the epidemic more slowly than others, needs new policies
Vietnam moving out of the epidemic more slowly than others, needs new policies
FEATUREicon  18/07/2021 

Prime Minister Pham Minh Chinh affirmed that Vietnam’s development goals have not changed and agreed with the two GDP growth scenarios for 2021 developed by the Ministry of Planning and Investment.

Vietnam among top 20 FDI destinations in the world
Vietnam among top 20 FDI destinations in the world
BUSINESSicon  16/07/2021 

For the first time, Vietnam is among the top 20 countries attracting the most foreign direct investment (FDI) capital in the world, according to World Investment Report 2021 by the United Nations Conference on Trade and Development (UNCTAD).

Six cities and provinces to pioneer in use of e-invoices
Six cities and provinces to pioneer in use of e-invoices
BUSINESSicon  16/07/2021 

The General Department of Taxation plans to launch the electronic invoice system at tax departments in Ha Noi, HCM City, Quang Ninh, Hai Phong, Phu Tho and Binh Dinh by the end of this year before rolling it out nationwide in 2022.

VIETNAM BUSINESS NEWS JULY 17
VIETNAM BUSINESS NEWS JULY 17
BUSINESSicon  17/07/2021 

Businesses have expressed their hope that customs agencies and relevant ministries and sectors will further simplify administrative procedures, which, they suggested, should be completely handled online, according to a survey.

 
 
 
Leave your comment on an article

OR QUICK LOGIN