Vietnam Hotels Struggle Amid Recession and Tourism Slump

Dow Jones carried a story on Vietnam hotels, another one discussing the less-than-stellar situations that are causing an avalanche of properties to be listed for sale. The article started with a commentary on a wave of HCM City hotels being put up for sale at deep discounts amid the ongoing recession and sluggish tourism market. The article described hotels in the Tan Binh District being put up for sale for around US$1.06 million each while a hotel on Bui Thj Xuan Street put up for sale at US$7.42 million. Without giving much in the way of details we have to take DJ’s word for it that these are discounts but they did say a three star 10 story hotel in District 1 was put up for sale for $11.5 million but there were negotiable discounts for serious buyers, whatever that means. The Vietnam Real Estate Association said many hotel owners, particularly small and medium-sized ones, are selling at significantly lower rates to maintain their cash flow while others are liquidating assets, trying to survive. Many hotels have closed or suspended operations while some are unable to keep up with operational and maintenance costs. There was more but this is the second time we have covered this so no need to keep hammering what is really happening in Vietnam.

Fiji Hotel and Tourism Association said the biggest issue now is Fiji Airways’ steadily increasing seat capacity bringing in more visitors to Fiji, something which is about to increase even further with two more wide-body aircraft being delivered next month as well as other airlines returning in earnest. Room inventory will be short by about 4,000 rooms. The Association said Airbnb and home stays have filled some of the gaps but smaller, affordable backpackers have been unable to return. The past decade has not seen any construction of large resorts as the investment climate has not been very conducive to attract the type of investments needed. Demand for hotels in the past 19 months has exceeded all expectations, something many other countries wish they could say. Forward booking trends show this appears set to remain for the rest of the year and into next year. Visitors are said to be spending more, staying longer and there are people traveling to Fiji who have never visited before.

Agung Sedayu Realestat Indonesia, in partnership with Ennismore, announced the opening of the first 25hour hotel property in Asia. The 25hour hotel The Oddbird Jakarta is expected to open in the fourth quarter of this year. The new hotel will mark a new chapter for ASRI’s hospitality collaboration with Ennismore. The new hotel is located in the District 8 complex, the final addition to the building complex in the heart of the Sudirman Central Business District. The hotel will offer a total of 345 stylistically distinct rooms that will be available for both hotel and residence. The hotel will offer a unique public area experience including a workplace fit for urban nomads, a vanity fair for odd birds, and a starting point for thorough expeditions in the city. The hotel also promises a slew of exotic food and beverage venues within the hotel, lobby lounge and bar, pool bar, ballroom, meeting and themed event spaces, and wellness facilities alongside an outdoor infinity swimming pool.

Lanson Place, a subsidiary of Wing Tai Properties Ltd., is set to open its new property in the Mall of Asia complex in Pasay City, Philippines, in collaboration with the SM Hotel and Conventions Corp. Lanson Place said the new development is set to open in the third quarter of 2023 with over 247 hotel rooms and 142 serviced residences. Wing Tai currently manages six properties under the Lanson Place brand, including luxury hotels and residences in Hong Kong, Shanghai, Kuala Lumpur and Singapore and is set to open a Melbourne property in 2024. SM Hotel has seven hotel properties with a combined inventory of 1,722 rooms and over 38,000 meters of leasable convention space.

IHG Hotels & Resorts announced the signing of a management agreement with AHG Hotels & Resorts Private Limited to develop the Holiday Inn Resort Kasauli. The new-build property will feature 300 rooms. The Holiday Inn resort will be located within one of Kasauli’s largest and most prominent resort areas. IHG said Kasauli has emerged as one of the most sought-after leisure destinations in northern India. The resort will overlook a charming valley within the Shivalik Hills. It will offer an all-day dining restaurant, lobby lounge and bar, gym, swimming pool and a 2,300 square meter meeting room.

Radisson Hotel Group said they added to their presence in Jammu and Kashmir in India with the opening of Radisson Hotel Sonamarg. This is the group’s seventh operational hotel in the region. The hotel includes multiple room categories including deluxe rooms, junior suites, and executive suites. The on-site restaurant is named Riwayat and includes a buffet and a la carte choices. The hotel is owned by Grand Mumtaz Resort 2.

Cygnett Hotels & Resorts announced the opening of Cygnett Inn Imperial Tezpur, a new addition to its portfolio of hotels in North East India. The property officially opened and is the hospitality chain’s fifth property in the region. The 50-room hotel is located in the heart of Tezpur, Assam. The hotel features the Metro Bar at Cygnett Inn Imperial Tezpur, C Pavilion all day dining restaurant and a range of MICE and wedding facilities. As part of its expansion plans, Cygnett Hotels & Resorts is looking to open 18 properties in the current financial year.

Hilton announced their Hilton Garden Inn brand signed an agreement with Premier Choice International to open a hotel in Islamabad in Pakistan. The franchise will open at Premier Choice’s flagship project Grand Orchard – a mixed-use development on Orchard Boulevard in DHA Phase 1. The Hilton Garden Inn at Grand Orchard will feature 120 guest rooms.