A view of Nha Trang Beach in Khanh Hoa province. (Source: baoquocte.vn) Hanoi (VNS/VNA) - Vietnam's growing tourism industry and thrivingeconomy have drawn interest in the country's hotel and resort market frominvestors across the region, making Vietnam one of the most talked aboutmarkets in Asia Pacific.
According to Jones Lang Lasalle Property (JLL), the industrial renaissance hasdriven corporate demand for hotels across the country, while visa exemptions,new direct air routes and improved marketing have boosted the country’s appealto leisure travellers.
Like much of Southeast Asia, leisure demand has been driven by mainland Chinesetourists which hit a record last year in terms of arrivals growth.
Last year, Vietnam received 15.5 million international tourists, up 19.9percent over 2017, according to the Vietnam National Administration of Tourism(VNAT).
The number of international visitors to Vietnam this October hit 14.5 million,13 percent higher than the same month last year.
As the three biggest economic and tourism hubs, Ho Chi Minh City, Hanoi and DaNang, see the tourist growth during the year and they also report theconstruction of more hotel rooms to serve demand.
By September, HCM City's tourist arrivals grew 14.3 percent compared to thesame time last year. This year, the city has recorded 1,114 new hotel rooms,lifting overall supply to 20,200. By the end of 2021, its supply is forecast tohit 22,000 rooms, 55.4 percent of which will be in the upscale segment.
Tourist arrival growth in Hanoi was 9.5 percent up to September. In the fourthquarter this year, 1,008 rooms will be added to the capital city’s hotellandscape, increasing total supply to 18,699 rooms, with approximately 97 percentof the new supply in the midscale and upscale segments.
By the end of 2021, Hanoi will have more than 20,400 rooms with approximately59.8 percent in the upscale segment.
With tourist growth of 26.1 percent by this July, during 2019-21 Da Nangexpects to add 9,479 rooms to current supply, of which 81.8 percent areprojected to be in the upscale and midscale segments.
Thanks to tourism and economic growth, the hotel transaction market in Vietnamhas had a busy year.
According to realty experts, in Vietnam foreign investors are seekinginvestment opportunities with higher returns in operating hotel assets within-place cash flow, while most domestic investors want to develop hotels andresorts from vacant land banks.
Some outstanding transactions in the market this year include Ho Tram GrandStrip resort's sale sold to Warburg Pincus investment fund, while Berjaya Grouptransferred 75 percent of TPC Nghi Tam village's shares to the Hanoi HotelTourism Development Co., Ltd.
TPC Nghi Tam village owns the Intercontinental Hotel in Hanoi with a value ofmore than 53.4 million USD.
On November 7, IHG (InterContinental Hotels Group) signed agreements with HoTram Project Company Limited (HTP) to rebrand The Grand Ho Tram at the Ho Tram Stripintegrated resort to InterContinental Grand Ho Tram within a year./.
VNA
