Time to pour money into hotel projects
In 2016, Vietnam received 10 million foreign travelers and served 62 million domestic travelers.
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Olivier Chavy, president and CEO of Mövenpick, said Mövenpick management board had visited Vietnam to check the projects under implementation here. The group is gearing up with plans to manage five more hotels in Hanoi, Da Nang, Cam Ranh and Phu Quoc. The negotiations have wrapped up and management will begin from 2019.
Mövenpick wants to complete preparation soon because many other investors are also speeding up construction of new hotels.
Su Ngoc Khuong from Savills Vietnam said that the increasingly high number of foreign and domestic travelers is a big reason for investors to rush to develop hotel projects.
With the open policy created by the 2017 Tourism Law, Vietnam hopes to receive at least 13 million foreign travelers and obtain a growth rate of 30%.
According to the HCMC Tourism Association, the number of MICE tourists that the city serves each time is no more than 800. But some groups can reach 3,000 travelers. There is no hotel which has a hall large enough to organize conferences for 5,000 participants.
HCMC plans to build a conference center, covering an area of 10 hectares in Thu Thiem area to serve large-scale groups of tourists. Meanwhile, Hanoi Tourism Department’s director Do Dinh Hong said Hanoi has chosen locations for upscale hotel projects, and the city would have four or five more 5-star hotels by 2020.
InterContinental Hotels Group (IHG) has opened InterContinental Hanoi Landmark72.
Hilton is developing four hotel projects in Hanoi, Da Nang, Hai Phong and Ha Long which are expected to join the market in 2018-2020. It plans to run 20-30 hotels in Vietnam in the next five years.
Olivier Chavy from Mövenpick said the group has surveyed new locations such as Phan Thiet, Ha Long, Van Don and Long Hai, and met with investors to discuss opportunities.
According to Savills Vietnam, 5-star hotels in Hanoi have the best performance in the country, better than in Da Nang and HCMC, with growth rate of 10% over the last year. The hotel room rate there has increased sharply by 41%. It is expected that 900 hotel rooms would be put into operation by the end of the year.
According to FIA, the total FDI capital registered in the first nine months of the year reached a record high of US$25.48 billion, an increase of 34.3% over the same period last year. This includes US$1 billion worth of capital to develop 34 real estate projects.
