Embracing development of hospitality and real estate in Vietnam
Embracing development of hospitality and real estate in Vietnam
At Vietnam’s largest hospitality and real estate conference titled Meet the Experts 2022 on November 10, analysts and businesses exchanged crucial information and openly discussed the evolution of and barriers to the country’s real estate and hospitality markets.
On November 10, Savills Hotels cooperated with the WeHub community to hold Vietnam’s largest hospitality and real estate conference entitled Meet the Experts 2022. With the theme of Embracing long-term development, the conference saw the presence of more than 20 leading speakers, including senior industry players and decision-makers.
In the first ten months of the year, domestic tourism rebounded well with 91.8 million domestic travellers, exceeding the 85 million that were seen in 2019. However, the return of international guests was underwhelming with only 2.3 million arrivals over the same timeframe, equal to only 16 per cent of the performance in 2019. Russia and China are key source markets, and political and pandemic-related disruptions mean these guests have not returned.
Vietnam’s real estate and hospitality market is currently going through tremendous changes and short-term challenges. Looking forward, there are calls for industry upgrades to meet the growing demand for quality products. At the conference, more than 20 leading speakers discussed the current market situation with a focus on long-term plans for enduring and sustainable growth.
Mauro Gasparotti, director of Savills Hotels Asia-Pacific and host of the Meet The Experts conference said, “The hospitality industry is transitioning. We will witness short-term difficulties but this will deliver long-term improvements, especially in transparency, the quality of products, and management. The recovery for coastal resorts has been slower than anticipated because of the weak international demand.”
However, Mauro pointed out that several luxury and boutique resorts have performed well, which shows that high-quality management and products pay off, especially in moments of market weakness.
He added that several hotels in Ho Chi Minh City and Hanoi have made a full recovery with encouraging results from business travellers, long-term guests, and MICE (meetings, incentives, conferences, and exhibitions) groups.
During the discussion sessions, representatives from Perceptions Hospitality, BIM Group, Booking.com, The Ascott Ltd., Fusion Hotel Group, Archipelago, VinHMS, and Cityland Education Vietnam shared the outlook for the hospitality market in 2023 and the potential challenges for near-term growth.
Speakers from QUO Global, TUI BLUE Hotels & Resorts, Pico Play, and WT Partnership discussed various emerging business models, including theme parks and all-inclusive resorts, and looked at the power of branding and how construction costs are changing.
Industry experts and senior professionals from Savills Hanoi, Capella Hotel Group, Hilton Worldwide, Baker McKenzie, Ziva Asia, Dusit International, and EuroStyle explored branded residences and their appeal.
Director of Savills Hanoi Matthew Powell commented, “Vietnam's market for branded residences is continuing to expand, especially the urban and resort segments, which have very strong potential. There is live interest for brands to enter the new market and look for new locations to grow their portfolios. The same goes for developers, who are also looking to explore this sector”.
He said that younger customers and affluent, globally-mobile individuals will continue to be a factor to drive demand for branded residences.
The conference also stressed the associated risks of poorly planned projects. The failure to hand over projects on time or with the expected financial commitments has impacted the appetite for the second home market.
The pandemic and market downturn mean industry stakeholders have had time to reflect on what has been done right and what could be improved to ensure lasting growth.
