Vietnamese Hotels Face Occupancy Woes 

Savills Hotels said the hotel industry in Vietnam is lagging amid low occupancy rates though room rates are near 2019 levels in most areas. Savills said the weakness in Vietnam’s hotel business is attributed to the slow recovery in tourism markets like Russia and China, compounded by increased supply in coastal destinations since 2020, as many projects delayed during the tourism boom are now coming online. If you feel like Vietnam’s tourism, hotel and casino industries have always seemed to underperform expectations, we feel the same way. Savills said the first half of 2024 saw the number of international tourists visiting Vietnam reaching 8.8 million, slightly higher than what it was pre-pandemic but while the demand side has recovered, oversupply in certain destinations to apparent undersupply in other spots like HCM City are impacting results. Savills said things like poor planning on condotels, oversupply and certain markets slow to recover have resulted in a trend of rebranding and repositioning with hotels and condotels enhancing competitiveness and market share through brand changes, upgraded F&B offerings and other strategic adjustments. Less than 25% of hotels in Vietnam were affiliated with international brands in 2013. This is projected to rise to 40% in the next three years and that is with a lot more supply. Savills sees a rise in interest in lifestyle brands emphasizing F&B offerings, particularly within mixed-use buildings. There is also a growing preference for properties offering limited or no F&B services, known as focused service hotels.

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Nomura Real Estate Master Fund agreed to acquire a Hokkaido, Japan hotel from Japanese builder Daiwa House Industry for JPY 6.3 billion (US$43 million). The REIT is buying La’gent Stay Hakodata Ekimae in Japan’s northernmost main island at a 26% discount to the independent appraisal value, according to the announcement. The 261-room hotel is located at the Hakoviva commercial complex in Hakodate.

Dusit International has signed a property management agreement with King Square Development Co. Ltd, a Bangkok-based real estate company established by Saha Group and Tokyu Corporation, and King Square Suites Co., Ltd. to manage Dusit Suites Kingsquare Bangkok and KingsQuare Residence – an upscale hotel and luxury residential project slated to open in 2026. The two properties are part of a brand-new lifestyle complex that will also include a community mall. Dusit Suites Kingsquare, Bangkok will serve as both a serviced apartment and hotel, comprising 60 hotel rooms and 49 spacious serviced suites, ranging from twin rooms to two-bedroom suites. Alongside the hotel, Dusit will also manage the KingsQuare Residence. It will be managed by Dusit Hospitality Services and will be a 52-story tower with 222 residences ranging from one-bedroom unit to three-bedroom homes. There will also be penthouse and duplex penthouse options starting at 324 square meters. Communal facilities include a swimming pool and barbeque terrace, co-kitchen and private dining space, kids playroom, basketball court and private meeting space.

Minor Hotels announced the Avani Ratchada Bangkok Hotel will open from September 1, 2024. The 402 key property is owned by CP Land Public Company Limited and was formerly known as Grand Fortune Hotel Bangkok. Following an extensive renovation it will start operating under the Minor umbrella, marking the 12th Avani hotel in Thailand and 3rd in Bangkok. The hotel includes 402 rooms and suites with a 169-square-meter Presidential Suite. On the 25th floor is the AvaniClub Lounge as well as a selection of culinary offerings. The wellness center occupies an entire floor and features a lap pool, AvaniFit gym and spa facilities, including a Japanese Onsen and sauna. There will be 16 event and meeting venues, including the 924 square meter ballroom.

BWH Hotels announced the launch of Best Western Sagita Hotel Jayapura, the brand’s inaugural hotel in the Papua province. The modern midscale hotel comprises 72 rooms and suites, a social lobby lounge, along with local, Pan-Asian and international cuisine at the all-day dining restaurant. There are six outfitted meeting rooms for business travelers or for events. BWH Hotels now offers 17 hotels and resorts across Indonesia.

Shangri-La Phnom Penh, under Oxlew Worldbridge (Cambodia) Co., Ltd., is set to open its doors in the fourth quarter of this year. Located in the southern tower of The Peak, the hotel spans from floors 30 to 54, with a dedicated meeting and events space on the 12th floor. The hotel offers 303 guest rooms, suites and apartments, ranging from 45 to 135 square meters. Online reservations will be available from October onwards. Event spaces cover more than 1,600 square meters and includes the 1,150 square meter Angkor Grand Ballroom on the 12th floor. The hotel will feature five restaurants and bars.

The Ascott Limited, the lodging business unit owned by CapitaLand Investment, said they have more than tripled their portfolio under their Unlimited Collection to 11 properties across Asia, Europe and the Middle East over the past year. Ascott is launching a brand refresh to accentuate its focus on cultural charms. The Unlimited Collection debuted in 2020 with three properties in Singapore. Ascott added eight new properties in the past year and the brand now comprises more than 900 units, both operating and in the pipeline, spanning eight cities globally. The brand refresh is a continuation of Ascott’s Brand360 strategy, a groupwide initiative to strengthen its brand portfolio through sharpened brand stories and the introduction of signature experiences and programs unique to each brand.

Quest Apartment Hotels, a member of The Ascott Limited, announced the start of construction for the new Quest Southport, located in the Gold Coast in southeast Queensland. This is part of Quest’s ongoing expansion and commitment to providing top-tier accommodation across Australia. This $50 million venture will feature a 10 story building comprising 90 modern units, a gym and a rooftop pool. Ascott Australia now has 10 properties and around 850 apartments under development across three brands and four states and expects to announce further signings and properties commencing construction during Q3 2024.

Club Wyndham South Pacific has commenced renovation work at Ramada Marcoola Beach, Queensland, Australia. The $2 million project includes a complete makeover of 24 holiday apartments and hotel rooms, infusing them with a “Hamptons-style” aesthetic. The resort is on Marcoola Beach and offers a 60-meter-long outdoor lagoon pool, children’s wading pool, day spa, gym, restaurant, bar, and multiple rooms for functions and events.

OYO has raised INR1,475 Cr (US$175 million) in a new round led by CEO Ritesh Agarwal, Patient Capital, J&A Partners and ASK Financial Holdings. It was a bit of a tough pill to swallow for the OYO CEO as the funding shows a valuation of US$2.37 billion. In 2019, OYO was getting money thrown at them with a US$10 billion value. Patient Capital invested INR 830 Cr, J&A Partners chipped in INR 120 Cr and ASK INR 14 Cr. InCred will also be investing an additional INR 76 Cr through Ashish Kacholia.