VietNamNet Bridge - Thang Loi, Hilton and Kim Lien and hotels of the State Capital Investment Corporation (SCIC) are seeking new investors.

SCIC has announced it will sell 52 percent of its stake in Kim Lien Hotel it is holding. According to the Hanoi Stock Exchange, 3.6 million of Kim Lien Hotel’s shares will be put into auction on December 22 in bulk at the starting price of VND30,600 per share. If the price is fixed, the deal will be worth VND112 billion.

Kim Lien Hotel, run by Kim Lien Tourism, has had a hotel in Hanoi for a long time, covering an area of 3.5 hectares on Dao Duy Anh in Dong Da district. It has nine buildings, 437 rooms and five restaurants.

Besides SCIC, which is the biggest shareholder, Kim Lien has other shareholders including GP Bank, PTFinance and GP Invest, which hold 21.6 percent, 6.7 percent and 6.6 percent of shares, respectively. 

An analyst commented that the Kim Lien share auction will attract many investors because Kim Lien is located on an advantageous position in the central area of Hanoi. 

Meanwhile, investors believe that it is now the right time to invest in hotels as the tourism industry has been developing rapidly.

The State some days ago released a decision on divesting shares of 10 profitable enterprises, including big names like Vinamilk (dairy producer), FPT Telecom, Binh Minh Plastics and Vinare (reinsurer).

The decision was made in the context of the high budget deficit, while the Ministry of Finance repeatedly warned that it may not fulfill a government bond issuance plan to get money for government spending.

The Vietnam Association of Finance Investors (VAFI) has suggested that the government should sell some big hotels as well because these are attractive goods in the eyes of investors.

The 4-star Thang Loi is one of the names which analysts believe ‘are suitable for sale’. It is located on 4.5 hectares on Yen Phu Street in Tay Ho district, an advantageous position in the city.

Established in 1975 as a state-owned enterprise, Thang Loi once called for the public’s capital following a Prime Ministerial decision on restructuring enterprises. BRG then had the opportunity to contribute capital to Thang Loi to become a big shareholder.

BRG, a powerful conglomerate in the fields of finance & banking and golf course, is also a strategic investor of Thang Long GTC.

Thang Long GTC is not a big name in the hotel sector, but its big value lies in investments in joint ventures of Hilton Opera, of which it holds 30 percent of stake, InterContinental Westlake and Capital Tower.

The other two big hotel names which could attract investors are Daewoo and Sofitel Metropole. 

VNE