Vietnam hotel market attracts foreign investors
Vietnam hotel market attracts foreign investors
The hotel market has been growing quickly, with the number of projects developed by foreign investors and managed by foreign brands increasing from 30 in 2010 to 79 by the end of 2017.
Mauro Gasparrotti of Savills Hotels Asia Pacific said that the Vietnam market has great potential in the resort market segment, which will continue to interest investors and managers.
The strong development of tourism has given a push to the Vietnam hotel market. According to the Vietnam National Tourism Administration (VNAT), 6,708,428 foreign travelers visited Vietnam in the first five months of the year, an increase of 27.6 percent compared with the same period last year.
South Korea is the fastest-growing market for Vietnam (62.1 percent), with 1,441,756 South Korean travelers in the first five months.
Vietnam has been seeing a strong rise of a new accommodation type – condotel – in the last two years. Savills Hotels estimated that condotels account for 65 percent of future supply in major tourism markets by 2020. At this moment, condotels account for 25 percent of total hotel supply.
However, most condotel projects are planned without regard to factors needed for operation. As a result, it will be difficult operate to due to lack of facilities, logistics areas or lobby services.
The world’s big hotel brands
The first months of the year alone witnessed the arrival of well-known hotel brands, including Mandarin Oriental and Movenpick in HCMC, and Best Western Premier in Quang Binh and Long Hai.
Mandarin Oriental, one of the world’s luxury hotel groups, has announced cooperation with Union Square Saigon to develop its first high-end hotel in Vietnam, named Mandarin Oriental Saigon.
Expected to open in 2019, Mandarin Oriental Saigon comprises 228 rooms, six restaurants and bars, spa, gym rooms and outdoor swimming pool in accordance with international standards.
Best Western, one of the world’s largest hotel management groups, has signed an agreement with FLC on attaching Best Western Premier brand to FLC’s hotel now under construction in Quang Binh province.
In the last three years, a series of new brands have been introduced, including Ozo and X2 Vibe, at New Hoi An City project; Double Tree by Hilton at projects in Ha Long, Vung Tau and Hanoi; Four Seasons in Quang Nam and Hanoi; and Oakwood and Mai House in HCMC and Glow in Da Nang.
Mauro Gasparrotti said that resort projects are attracting managers more than years ago thanks to higher quality, more confidence of international management groups and investors’ willingness to create original products.
Savills estimates that more than 30,000 hotel rooms would open by 2019.
