Investors rush to build 5-hotels in anticipation of tourism boom
The Ho Chi Minh City hotel market this year has welcomed many foreign brands, including Mandarin Oriental, Movenpick and Best Western Premier.
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Mandarin Oriental, one of the world’s leading luxury hotel groups, in May joined forces with Union Square Saigon to build the first high-end 228-room hotel in Vietnam bearing the brand Mandarin Oriental Saigon.
Meanwhile, Movenpick Hotels & Resorts has announced it will develop Movenpick Hotel HCMC into a 815-room hotel, including 288 hotel rooms and 527 serviced apartments.
According to Savills, a real estate consultancy firm, the number of hotels bearing international brands soared from 30 in 2010 to 79 in 2017.
With the foreign investment increase, it is estimated that more than 30,000 hotel rooms would be put into operation by 2019.
In 2017, Vietnam received 13 million foreign travelers, an increase of 30% over 2015, and served 74 million domestic travelers, an increase of 19%. The industry brought revenue of VND515 trillion, or US$24 billion, an increase of 23%.
Vietnam targets 16 million foreign travelers in 2018 and 80 domestic travelers, hoping to earn VND620 trillion.
HCMC Tourism Department head Bui Ta Hoang Vu said the increasingly high number of travelers has led to more demand for hotel rooms.
HCMC has 20 5-star hotels and 120 hotels meeting 3-4 star standards.
If the 20% growth rate in number of travelers is maintained, the city would receive 10 million travelers by 2020 and need 10,000 high-end hotel rooms to satisfy accommodation demand.
“We are encouraging investors to develop accommodation facilities meeting 5-star standards and higher,” Vu said. “HCMC will release the accommodation development program and solutions to promote tourism.”
Together with luxury hotels, many resorts have also arisen. FLC Group is implementing over 50 resort projects in Sam Son (Thanh Hoa), Quy Nhon (Binh Dinh), Quang Binh and Quang Tri.
Of these, FLC Quy Nhon Beach & Golf Resort has the longest artificial coastline and the largest infinity swimming pool (1 kilometer).
The high occupancy rate in the first season of operation prompted FLC to speed up the construction of The Coastal Hill Quy Nhon and FLC Lux City Quy Nhon.
Vingroup and Sun Group are also executing a series of resort real estate projects.
The former has put into operation Vinpearl Phu Quoc Ocean Resort & Villas, Vinpearl Phu Quoc Paradise Resort & Villas, Vinpearl Riverfront Condotel and VinPearl Da Nang Ocean Resort & Villas. The latter has launched Sun Premier Village The Eden Bay in Phu Quoc.
