Analysts: High-end hotels hold appeal among investors
Analysts from real estate consultant Jones Lang LaSalle have said domestic and foreign investors alike are actively seeking to purchase high-end hotels in downtown areas, mostly due to limited land supply.
Restricted credit going to domestic investors is also expected to see more foreign investors arrive, especially those hoping to buy shares in existing projects.
The total worth of hotel purchases in Vietnam last year was US$358 million, accounting for about 17% of the Southeast Asian region’s total.
HCM City is one of the most searched markets in Vietnam but there have been no deals recently.
Coastal areas are considered more promising, with a deal for the 280-room Sheraton hotel in Nha Trang being of particular note.
The capital Hanoi saw share purchases in the 138-room InterContinental Hanoi Westlake hotel and the 90-room Somerset Westlake Hanoi serviced apartment building.
Since COVID-19 broke out, both Hanoi and HCM City have posted declines in their revenue per available room (RevPAR) index.
The index grew 7.4% annually on average during 2014-2019, with hotel supply up 7.6% and the total tourist numbers up 9% on average each year.
The index has rebounded in both cities since May, with month-on-month increase of 33.4% in Hanoi and 7.1% in HCM City.
According to analysts, hotels in Hanoi have attracted domestic visitors and businesses from nearby localities as the city is less affected by the border shutdown.