After the busy summer tourism season, many hotels in Da Nang are now on sale. The hotels, both small and 4-5 star rated, are mostly located in the districts of Ngu Hanh Son and Son Tra. 

Hotel sales in Da Nang first occurred when the pandemic broke out and then lasted for a long time.

Acting as buyers, VietNamNet reporters contacted a broker, P, who advertised to sell a hotel on Vo Van Kiet street, with 17 stories and 70 rooms, for VND100 billion (over US$4 million). 

“The bank loan interest rates are high, which is unbearable for hotel owners. A lot of hotels have asked us to help them sell their properties,” P said.

H, another broker, said investors have suffered because of the long pandemic. “Investors have to sell hotels to pay bank debts and restructure their investments. Most hotels are sold via brokerage companies,” H said.

Nguyen Duc Lap, director of the Da Nang Real Estate Research and Training Institute, confirmed that bank loan interest rates have increased sharply, while the market is witnessing a supply shortage as localities are adjusting their overall development planning. 

Meanwhile, the resort estate market has been affected by the weak recovery of the tourism industry. 

Da Nang’s tourism has not fully recovered and the number of travelers to the city remains modest compared with 2019. The city has entered the low tourism season, so no big improvement is expected from now until the end of the year.

Analysts are not optimistic about foreign travelers in the time to come as China has not opened yet. The revenue of hotels is low compared with their designed capacity. 

“The real estate market is entering a declining cycle. There will be one more difficult year for this market segment,” Lap said.

Ho Giap