Many hotels in Vietnam have been put up for sale, one of the signs that there are fewer investors interested in this sector in Vietnam.
VinaCapital Vietnam has hired Jones Lang LaSalle Company to sell 50% of their stake in Metropole Hanoi
Among those on or going on the market in Vietnam is the Metropole Hanoi. VinaCapital Vietnam has hired Jones Lang LaSalle Company to sell 50% of their stake in the hotel at USD58.7 million.
In addition, several hotels are in need upgrades and are seeking foreign and domestic investors to achieve this goal. Lotte has bought the five star hotel Legend Saigon in HCM City.
According to CBRE, in the first six months of this year, hotels in Hanoi welcomed 929,000 foreign guests, up to 21.5% on-year. However, local three-to-five star hotels’ occupancy rates only reached an average of 57%. Room rental was at around USD73 per night, down 3.5% from the quarter before and 5.1% from last year. This has resulted in an on-year drop of 4.6% in Revenue Per Available Room (RevPar) to USD41.
The situation is forecast to worsen as the hotel room supply would reaches nearly 10,000 rooms by the end of the year, up 13.5% compared to the same time of last year. Two big hotel projects, namely Intercontinental Hanoi Landmark (359 rooms) and JW Marriot (450 rooms) are expected to be launched.
Richard Leech, Managing Director of CBRE, said the investment withdrawal can be mostly attributed to the decrease in hotel occupancy rental rates.
Meanwhile, the Vietnamese tourism sector is less competitive than that of many regional nations. A four-day and three night tour to Cambodia is roughly USD200 per person, but return airfare from on the Hanoi-HCM City route can cost up to USD300.