Vietnam Has an Oversupply of Hotels

STR reported China hotel data for the week ended July 1. The end of the first half of the calendar year 2023 was a week that had China hotel RevPAR up 50.4% year over year, up against a decline of -7.6% comp. When compared to the same week in 2019, China hotel RevPAR was up 13.2%.

Vietnam’s General Statistics Office said the number of international visitors to Vietnam in the first half of 2023 reached 5.6 million, which is 70% of their 2023 projection and at 66% of 2019 levels at 64 million visits. Total revenue from tourists in the first 6 months was estimated at 343.1 trillion VND. The Vietnam Tourism Association said while the number of international visitors to Vietnam has increased rapidly, it has been below expectations as the competition with other countries is fierce and the economic recession is still in place. The tourism market from China has also not fully recovered. AZA Travel described 2023 as more tragic for the tourism industry as even domestic tourism is slumping as tourists run out of money. For Lunar New Year 2023, the number of domestic tourists were 50% compared to last year with revenue plunging sharply. Out of 9 million visitors arrivals, only 2 million stayed over, down -37.5% over the same period with average room occupancy at 40%-45%. The National Tourism Administration said demand decreased while the supply and fund of new rooms entering the market is increasing very quickly. The oversupply of hotels is said to be most clearly reflected in Da Nang and Nha Trang.

The Vietnam Joint Stock Commercial Bank for Industry and Trade, called VietinBank, is offering 400 assets as collateral for defaulted debts. They are primarily hotels and resorts in Hoi An City in the central coastal province of Quang Nam. The inventory includes about 30 restaurants, hotels and resorts in Hoi An City, in the three- to five-star range, with sizes ranging from hundreds to thousands of square meters. A four-star hotel with 98 rooms is listed for sale at VND420 billion, occupying a 2,000 square meter area. Three land plots spanning from 1,000 to 4,300 square meters are also available for purchase. The most valuable asset in the group is said to be a five-star hotel in Danang City, priced at around VND600 billion. It encompasses a 1,200 square meter land parcel and features 236 rooms. VietinBank said they are open to price negotiations for several resorts in Danang City, as well as in the coastal provinces of Khanh Hoa and Binh Thuan. This includes a 4,500 square meter resort located in Ham Thuan Nam District, Binh Thuan Province.

Hyatt Regency Danang Resort & Spa, a five-star family lifestyle resort on Vietnam’s central coast, announced the launch of Vive Oceane, a new seafront venue that has become the first and only beach club restaurant in Danang. This opening forms part of an extensive program of upgrades at the resort, which has also seen the revitalization of other F&B outlets. The five star resort features 198 rooms and suites, 144 one to three bedroom residences and 18 three-bedroom villas, plus five outdoor pools, a fitness center, spa, restaurants and bars. Under the renovation project, an expanded Camp Hyatt kids’ club, revitalized villas and an all-new art gallery have been revealed.

Worldwide Hotels Group subsidiary Legend Land Melbourne Pty Ltd has acquired the Novotel & ibis Melbourne Central Hotel for A$170 million. CBRE Hotels brokered the sale on behalf of Well Smart Investment Holdings as part of the group’s capital recycling strategy which has already seen them acquire Lindeman Island in Queensland. Legend Land’s acquisition of the 472-room Australian hotel represents the largest hotel transaction in Melbourne in over six years. The hotel was built in 2018 as Australia’s first dual-branded high-rise hotel. It comprises a 259 lower-level ibis room component and a 213 Novotel room component with amenities including two restaurants, a bar, conference and meeting spaces, recreation facilities and undercover car parking.

Simultaneously, Worldwide Hotels Group announced an agreement to acquire the ParkRoyal on Kitchener Road in Singapore for US$388 million, the largest ever single-asset Singapore hotel transaction. The purchase consideration of S$525 million to Midtown Properties represents the second-largest in Asia Pacific in 2023.

Marriott Hotels announced the opening of Zhuhai Marriott Hotel Jinwan in China. This is the first international high-end brand hotel with complete service facilities in Jinwan District of Zhuhai city, jointly developed by Zhuhai Huafa Group Co., Ltd.and Marriott International. The hotel is located in the commercial complex of Huafa International Business Center in the middle of Aviation New City, 18 kilometers away from Zhuhai Airport. Zhuhai Marriott Hotel Jinwan has 296 guest rooms and suites, all with independent work areas, lounge areas with lounge chairs and coffee tables and views of the city or lake. There are two dining venues and a lounge, more than 2,000 square meters of meeting and event space and the M Club offered to higher end Marriott Bonvoy member and guests who stay on the Executive Floor. There are leisure and fitness facilities including a 25 meter outdoor swimming pool.

OYO Hotels announced it will be adding 500 new hotels in India within the next three months. The Economic Times said the 500 new hotels will be added across several host cities of the upcoming Men’s Cricket World Cup. The tournament begins on October 5 and concludes on November 19 and will take place in the cities of Hyderabad, Delhi, Dharamsala, Chennai, Lucknow, Bengaluru, Mumbai, Kolkata and Pune. The final will be placed in Ahmedabad. The new hotels will be strategically located near these stadiums.

Indian Hotels Company Limited announced more portfolio expansion with the signing of 11 hotels and the opening of 5 new hotels. IHCL said they executed 11 agreements across all its brands in the first quarter. Taj further strengthened its presence with a 400-room hotel in Delhi and a 120 room hotel in Kochi and entered new markets like Raichak in West Bengal and Dhaka in Bangladesh. IHCL said they signed a SeleQtions in Kumbhalgarh and Naukuchiatal. IHCL’s current portfolio is 270 hotels making the company well-positioned to achieve its vision of 325+ hotels by 2025.

Oberoi Group will be setting up a 7-star hotel in Tirupati in India. This will be the first 7-star hotel in the pilgrim city which already has three 5-star hotels. AP Tourism has allocated 20 acres of land on a 90-year lease to Oberoi group on Alipiri – Zoo Park road at survey number 604/9 in Peruru village of Tirupati. The Oberoi Group will invest Rs 250 cr on the project.

BS Gautam announced the opening of the Days Inn by Wyndham Gangtok Tadong. Gangtok is located in the eastern Himalayas range in India, the main base for Sikkim tourism. Days Inn by Wyndham Gangtok Tadong is situated in the Upper Tadong area of the Gangtok City. The hotel offers 43 contemporary rooms with all-day dining, meeting facilities, gym and a pool. The hotel marks Wyndham’s first Days Inn hotel in Gangtok and fifty-eighth hotel opening in the Eurasia region.

The Oaks Casuarina Santai Resort in NSW, Australia has completed its extensive refurbishment with new common areas and guest rooms ready to welcome guests. The new renovation injects contemporary coastal features to modernize the Balinese-style resort. 

Radisson Hotel Group announced the signing of the new Radisson Blu Mirage Resort, Fiji Naisoso Island, expanding the group’s presence in the Fijian market. The resort is scheduled to open in the first quarter of 2026. The 250-key resort is set against the backdrop of Naisoso Island and will offer guests direct beachfront access from apartments that overlook the South Pacific Ocean. Accommodations range from contemporary guestrooms to spacious apartments ranging from 64 square meters to 106 square meters including one bedroom to three bedroom units and expansive villas. Leisure facilities include three beachfront swimming pools, a gym, and a kids club. The resort will also offer an all-day dining restaurant, specialty restaurant, a swim-up pool bar and events spaces.