Vietnam's Hotel Room Supply Is on the Rise
Skift Take
Savills Vietnam is predicting the hotel real estate market in Vietnam, particularly in Hanoi and Ho Chi Minh City, is predicted to see a big supply thanks to new projects in the 2024-2026 period. HCM City’s tourism targets to attract 6 million international visitors and 38 million domestic visitors in 2024 and earn 190 trillion VND (US$7.74 billion). The total supply currently in the southern metropolis is 15,991 rooms from 114 hotels, an increase of 3% year on year. Ramada Encore Saigon by Wyndham with 70 rooms and Sotetsu Grand Fresa Saigon with 125 rooms joined the market last year. By 2026, forecasts reveal that four other hotels with 800 rooms will open, while many projects are in the planning stages and have yet to have a specific opening date. Notably, the 5 star Hilton Saigon hotel will open in the first quarter of 2024. In Hanoi in the 2024-2026 period, 13 projects with 2,746 rooms are expected to come into operation including three projects that will start operation in 2024, namely Dusit Hanoi – Tu Hoa Palace with 207 rooms, Fusion Suites with 238 rooms, and My Dinh Pearl Phase 2 with 500 rooms.
Marriott International and Delonix Group announced a long term cooperation agreement under which the two companies will work together to grow Marriott’s Tribute Portfolio brand in mainland China. The Delonix portfolio currently includes 10 hotel brands with over 1,400 hotels open or in the development pipeline. The parties expect at least 100 properties could become part of the Tribute Portfolio over the coming years. The collaboration will include Marriott franchising its Tribute Portfolio brand in connection with selected Grand New Century and other premium brand hotels managed by Delonix Group. The hotels are expected to be available for booking through both companies’ direct booking channels and to participate in the parties’ respective loyalty programs. New Century is Delonix Group’s Chinese-chic, premium hotel brand with an open and pipeline portfolio of 180 properties and over 50,000 rooms in China. It was established in 2005.
Minor International Pcl is aiming to add 250 properties to its global hotel portfolio over the next three years as the revival of outbound Chinese travelers underpins the strong recovery of the global tourism sector. Most of the expansion will kick in after this year. Minor currently has 530 hotel properties in nearly 60 countries with most its Europe business through NH Hotel Group SA, which it acquired in 2018. While Minor believes the Chinese traveler will lead the positive tourism results, a Bloomberg Intelligence Survey said the opposite, as they reported results which indicate budgets for Chinese travelers, for both domestic and international travel, might decrease or stay flat in 2024 as macroeconomic headwinds drive cautious spending sentiment. Minor believes Chinese visitors will reclaim the top spot of foreign arrivals to Thailand this year. Increased flight capacity and a permanent bilateral visa waiver program, expected to start in March, is what they believe will accelerate the comeback of Chinese travelers.
Accor announced the addition of two new properties in the Philippines, expanding its hotel portfolio in Asia. The latest signings include Mercure and ibis brands. The ibis Styles Subic is set to become the first international branded hotel in the former military base of the US in the country. The facility is expected to open in 2026 with 175 rooms, swimming pool, meeting space and a gym. The hotel will be located just across from the Ayala Malls’ Harbor Point. The Mercure Subic will be adjacent to the ibis Styles and will have 250 modern designed rooms, all-day dining venue and a specialty restaurant, swimming pool complemented by a pool bar, gym and versatile meeting and conference spaces.
Club Mahindra from Mahindra Holidays and Resorts India Limited has strengthened in Southeast Asia by entering into strategic partnership with resorts in Vietnam and Indonesia. The expansion allows Club Mahindra members to access premier accommodations at two resorts in Vietnam – Citadines Pearl Hoi An and Citadines Bayfront, along with the exotic Ayodya Resort in Bali. With the new collaborations, Club Mahindra now offers leisure holidays at over 12 resorts in Southeast Asia and globally, at more than 60 destinations.
Century Properties Group announced plans to launch projects in the first half of 2024 under its Premium, In City Line. The first to be launched for this quarter is The Hotel Residences at Acqua in Mandaluyong City, Metro Manila. The second, drawing inspiration from the renowned Azure brand, CPG will launch its first mid-rise 12 story residential development at Azure North in San Fernando, Pampanga, with the first tower offering 375 units.
Indian Hotels Company Ltd. announced the signing of the third hotel in Ayodhya, Uttar Pradesh, on the day of the Ram temple inaugurations. The 150 key brownfield project will be branded as a SeleQtions hotel, spread over 1.3 acres. IHCL will now offer three distinct brands in Ayodhya of about 400 rooms. IHCL collaborated with KM Vyaparfor for the SeleQtions hotel.
Chennai Airport is planning to add a mini hotel within its new terminal, providing convenience to transit passengers with extended layovers. The ongoing expansion project includes the construction of a new integrated terminal building, with Phase II expected to incorporate the hotel. Approval is being sought from the Bureau of Civil Aviation Security. The expansion of the airport is being done in two phases. The second phase is the one that is expected to incorporate a hotel within the new integrated terminal building. Officials from the Airports Authority of India have conceptualized the idea and intend to seek approval for its implementations.
Leisure Hotels Group announced the signing of the mountainous resort, Baikunth Resort nestled amid nature in the serene hill station of Kasauli. The Group also signed a management agreement for a premium boutique hotel in the hill town of Mcleodganj. Baikunth Resort, Kasauli in India features 37 rooms and cottages with sweeping views of the valley. There is a multi-cuisine restaurant, Glass House Bar and more.
Personnel Move
Minor Hotels announced the appointment of Vijay Krishnan-Vazhvelli as Vice President – Operations, India. This was effective as of December 21, 2023. His most recent role before joining Minor was as VP Operations at Royal Orchid & Regenta Hotels & Resorts, managing multiple properties across India.