Sapa hotel

Sapa hotel: HCM City needs 27,000 more hotel rooms

HCMC will need around 27,000 more hotel rooms, with around 6,700 rooms meeting three- to five-star standards, to accommodate some seven million international tourists and 24 million domestic ones in 2020.

The five-star Pullman hotel is under construction on Tran Hung Dao Street in HCMCs District 1. The city needs 27,000 more rooms by 2020 to meet the demand.

Truong Vinh Tho, head of the Hotel Division under the Department of Culture, Sports and Tourism, said that the hotel room demand was calculated based on the tourist growth, accommodation demand and the average length of stay.

The current growth is around 10% per year for international arrivals and a slightly lower growth for domestic tourists. However, the calculation of hotel room supply is based on average growth rates of 8% and 6% for the numbers of international and domestic tourists respectively.

The average length of stay is 2.6 days for international tourists and 2.5 days for domestic tourists.

Tho said such figures on hotel room demand and the growth of tourist arrivals are included in the draft plan on hotel system development until 2015 and a vision towards 2020 which will be submitted to the HCMC government this quarter.

HCMC currently has around 40,900 rooms, with 4,622 rooms of 61 three-star hotels, 2,114 rooms of 15 four-star hotels and 4,587 rooms of 14 five-star hotels. The remaining number of rooms belongs to hotels of lower quality.

According to Tho, the development pace in the hotel sector in HCMC has slowed down in recent years, and most of the hotel projects are implemented slowly due to capital shortage and slow site clearance.

Several five-star hotel projects such as the expansion of Majestic and Kim Do hotels and the construction of Pullman hotel have fallen behind schedule. In addition, the number of investors interested in this sector is fewer, Tho said.

“HCMC was expected to have 11 more hotels last year, but only two hotels were finished at the years end. However, I believe that the implementation progress will be accelerated as existing investors are determined to speed up their unfinished projects,” he said.

Although HCMC has planned to locate hotel projects in District 7 and District 2, investors still prefer developing projects in downtown areas like District 1 and District 3. In District 1 alone, there are 5-6 high-end hotels under progress, according to Tho.

HCMC attracted over one million international tourists in the first quarter, and the average room occupancy rate at three- to five-star hotels has reached 68-70%.

Vietnamese investors hunting for foreign developed resorts (part 1)

A lot of luxury hotels, tourist sites and resorts developed by foreign investors in Vietnam have fallen into the hands of domestic investors. The big guys are ready to spend big money to possess the assets which they believe can bring long term benefits. Sapa hotel

Multi-million dollar affairs completed in silence

While many real estate developers are trying to bargain away property projects to foreign investors before withdrawing from the market because of the lack of capital, many other Vietnamese investors are trying to acquire the big foreign developed projects.

Hanel Hanoi, which became well known as an electronics enterprise, has bought 100 percent of stakes of the five star hotel Daewoo Hanoi from a South Korean enterprise. This is one of the biggest and most luxurious hotels in Hanoi, located on the “golden land” with advantageous position.

Though the value of the deal has not been revealed, experts believe that the assignment deal is worth multi-million dollars.

The information that the Hilton Opera Hotel has changed hands would surprise many people, who could not imagine that a Vietnamese businessman would be powerful enough to buy the hotel from the German and Austrian owners.

The information about the deal was only exposed to the public after the deal was wrapped up. The deal was made so quietly that people only heard about it when staying at the hotel and reading the introductions about the new investor put on the table in their rooms.

The buyer is the BRG group owned by Nguyen Thi Nga, a well-known person in the business circle as the owner of the two golf courses in Do Son (Hai Phong City) and Soc Son in Hanoi. Nga is also the owner of the “golden land plot” on the Thanh Cong lake side, the President of SeABank, a joint stock bank headquartered in front of the head office of the Ministry of Finance.

Especially, Nga became more famous after the equitization of Intimex – a big enterprise of the Ministry of Industry and Trade. Nga succeeded in the struggle to obtain the post of the president of the company, which possesses a lot of real estate products. These include the land plot on Le Thai To Street that faces the Hoan Kiem Lake in the central area of Hanoi.

Some five star resorts, considered the first five star resorts in Vietnam, now well known all over the world have also been transferred to Vietnamese investors. Furama resort in Da Nang City is an example. In mid 2005, Sovico, a domestic conglomerate, bought all the stakes of the Bac My An tourism complex, run by the joint venture of the Vietnams Da Nang Tourism Company and Hong Kongs Lai Sun group.

Sovico Holdings is also a well-known name in Vietnam. It is one of the founding shareholders of Techcombank and VIB Bank. The group is trying to expand its business scale by jumping into the hotel sector, holding the controlling stakes in Ho Guom Hotel in Hanoi, teaming up with Saigontourist to develop the Phu Quoc tourist site. It is also building a five star resort, a part of Arivana project in Da Nang City. Especially, Sovico Holdings is the biggest founding shareholder of VietJet Air.

Another big deal made recently was the one in which Thien Minh Tourism Company bought the Victoria hotel and resort chain in Vietnam and Cambodia. After the deal, the five resorts and hotels bearing Victoria brand developed by Hong Kongs EEM Victoria in Vietnam and Cambodia have been transferred to Thien Minh. These include Victoria Phan Thiết Beach Resort & Spa, Victoria Sapa Resort & Spa, Victoria Can Tho Resort, Victoria Chau Đoc Hotel, Victoria Hội An Beach Resort & Spa in Vietnam, and Victoria Angkor Resort & Spa (Cambodia).
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