Why investment flows to multibillion dollar complex Ho Tram Strip
Why investment flows to multibillion dollar complex Ho Tram Strip
The Ho Tram Strip is currently a magnet attracting investors to the Vietnamese resort market, especially the condotel market. It not only attracts more than 200,000 visitors a year but also helps Vietnamese and foreign investors make attractive investment deals.
Fifth development in the multibillion-dollar integrated resort
Besides its ideal location (beachfront and only two hours away from Ho Chi Minh City), the Ho Tram Strip is alluring because of four developments (at an investment of over $1 billion) undertaken by the developer in the last 10 years.
In July 2013, the Grand Ho Tram Strip opened, the first development on such a scale in Vietnam, with 541 five-star hotel rooms professionally served by a team of more than 2,000 carefully trained employees. It is best known as an entertainment complex that offers 10 bars and restaurants, a first class spa, children's playgrounds, swimming pools, a shopping mall, and, on top of all, Vietnam’s first and biggest fully licensed casino for foreign players. This perfect combination made The Grand the first truly Las Vegas-style integrated resort in Vietnam.
In October 2014, The Bluffs, a links 18-hole championship golf course, opened. Located opposite The Grand Ho Tram Strip, The Bluffs was designed to international standards by golfing legend Greg Norman.
This course was the cherry on top, enabling The Grand Ho Tram Strip to win prestigious awards, including the World’s Best Golf Hotel, Best Luxury Hotel in Vietnam, and Best Luxury Coastal Resort Worldwide in 2015. The Bluffs also swiftly secured a high ranking in the World’s 100 Greatest Golf Courses. This was impressive testimony to the quality of the integrated development and underlined the status of this multibillion-dollar complex.
After the impressive first phase, the developer moved on to the second phase to maintain the competitive edge as well as prepare for future growth. In late 2016 the developers launched Gallery Villas with 60 three-bedroom villas planned and integrated into the Bluffs.
Next year The Beach Club—the 560-room second hotel tower—will begin welcoming guests to meet the increasing demand for a range of accommodations in Ho Tram.
In addition, more amenities will be added, including a water park, an outdoor auditorium accommodating 2,000 guests, family dining areas, movie theaters, and six bowling alleys, all of which will bring a fresh new look to the complex. This strategic vision represents a commitment to The Ho Tram Strip and to the integration of all projects on the Strip.
Another fact worth noting is that according to research reports, property prices in Ba Ria-Vung Tau province are likely to rapidly increase as Long Thanh International Airport is being accelerated. In addition, a private airport at Loc An (at an estimated cost of up to $50 million) to meet the Ho Tram Strip’s air transport demand has been approved and the location of the site is being acquired. According to the developer HTP, Kahuna Ho Tram Strip will not only be a high-end recreational project but also a means for the Ho Tram Strip to maintain its position as the leading entertainment complex in Vietnam.
Ramada Kahuna Ho Tram Strip, a smart long-term investment
Unlike a lot of other isolated condotels, Ramada Kahuna Ho Tram Strip receives strong support from the Ho Tram Strip Integrated Resort. Situated on the beach, with the Grand Ho Tram Strip to the south and The Bluffs to the west, Ramada Kahuna will have access to all premium services in this billion-dollar complex.
Ramada Kahuna Ho Tram Strip has a competitive edge in terms of location, transportation, investment, brand value, and potential customers, illustrating the developer’s commitment of bringing the promise into reality.
The Ho Tram Strip’s reputation and future potential is one of the reasons Wyndham (the world’s largest hotel operator) has committed to operate Kahuna under the prestigious Ramada brand.
The brand name will guarantee global quality standards at the resort, ensuring the best experience for visitors throughout their stay and increasing loyalty to the Strip. Besides, Ramada Kahuna Ho Tram Strip can also take advantage of Wyndham’s global presence in 80 countries as well as allow its loyal members to vacation at the Ho Tram Strip.
In doing so, Ramada Kahuna Ho Tram Strip is expected to not only ensure high occupancy rates, but also encourage visitors to prolong their stay. This will positively impact the project’s revenue and profit. With units going from VND2 billion and guaranteed returns (8 per cent for the first two years and 9 per cent for the next two years), the developer is also confident to apply a 60/40 net revenue sharing model for the 10-year Rental pool arrangement.
It means investors can expect to get 60 per cent of the net rental income without deduction of operating costs in general (except for easily identifiable costs such as booking fees paid to third parties, cleaning services and management fees).
This model will shield investors from cost increases and other factors affecting their profit margin. These will increase the value of Ramada Kahuna over time. Therefore, for investors, Ramada Kahuna is not just a cash cow but also a source of potential capital gains through the Ho Tram Strip’s 10-year journey.
