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Danang Hotel Market Overview
Vietnam Hotels + Resorts Newsletter
Danang Hotel Market OverviewVietnam Economics UpdateIndustry Conferences and EventsAlternaty UpdatesInvestment OpportunitiesAbout Us
1789
1010
AUGUST 2013
IN THIS ISSUE
INTRODUCTION
Danang is a destination familiar with many tourists and investors from both Vietnam and abroad. Its success in attracting a large share of tourists and FDI in Vietnam is largely attributable to the progressive and determined local authorities who have helped the City earn its reputation as a no nonsense place for doing business. This led to a construction boom in 2009 and 2010 and a corresponding oversupply in the years that followed. However, the relentless waves of tourist arrivals ensured that the oversup-ply was short lived and today the hotels and resorts sector is turning in some surprisingly impressive results. But will this last?
LocationDanang City, one of the five independent municipalities in Vietnam, is located on the coast in Central Vietnam, 763 km south of Hanoi and 947 km north of Ho Chi Minh City, with 92 km of coastline. The City serves as a national hub for air, land, rail and sea routes as well as an important regional gateway being located at one end of the
The City consistently achieves GDP growth that ranks among the highest in the country which is a result of the
local authority’s determination in attracting investment in real estate, manufacturing and infrastructure projects. The City has set a high
benchmark in terms of how to facili-tate investment from foreign investors
as well as how to orderly plan and execute real estate and infrastructure
projects.
Alternaty Opinion
The majority of the FDI has been channelled into real estate and tour-ism projects however the future focus
has sharpened on sectors such as clean tech industrial parks with IT and data centres, hotel schools and inter-national universities in an attempt to turn Danang into a truly modern
international investment hub.
Alternaty OpinionEast-West Economic Corridor (EWEC) cross-ing Myanmar, Laos, Thailand and Vietnam.
The latest official population estimate which was conducted in 2012 was 968,000 persons making it the fifth largest city in Vietnam af-ter HCMC, Hanoi, Hai Phong and Can Tho. The City has a total land area of 1,283 skm.
Danang is one of the major tourist destina-tions in Vietnam, with several white sandy beaches, among them Danang Beach, a large choice of accommodation options and well developed infrastructure. The City
is surrounded and protected by the moun-tains and the sea. Within 100 km there are several UNESCO World Heritage Sites such as the ancient imperial city of Hue, the old town of Hoi An as well as the My Son ruins.
2Phu Quoc Hotel Market Overview
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AUGUST 2013
Most visitors arrive by flight, to Danang In-ternational Airport, which is the third bus-iest airport in the country after HCMC and Hanoi airports. Located just 3 km from the city centre, the airport recently underwent a major upgrade with a brand new 3 storey 36,600 sm terminal having been complet-ed at the end of 2011. The two 45 m wide runways can accommodate planes as large as Boeing 767s and Airbus A320s and could handle up to 100 to 150 flights per day. This translates to a capacity currently of 6 million passengers per annum for the new terminal, which is expected to increase to a capacity of 10 million by 2020.
Currently there are approximately 280 do-mestic flights to Danang per week (includ-ing 143 from HCMC, 97 from Hanoi and 17
Access
The City consistently achieves GDP growth that ranks among the highest in the coun-try, with 9.1% in 2012 (down from 13% in 2011) compared to Vietnam (5.03%), HCMC (9.2%) and Hanoi (8.1%) during the same period. The economy was until recently ranked as the most competitive in the country according to the PCI (Provincial Competitiveness Index) achieving 1st place for 3 consecutive years from 2008 - 2010. However, in the latest rankings conducted in 2012, the City had slipped down to 12th place from 63 having lost competiveness in categories including labour training, access to land and depth of legal institutions.
Being one of the major real estate develop-ment and industrial centres in the country, Danang is also one of the major recipients of Foreign Direct Investment. Of the 251 FDI projects invested to date, worth US$3.1 billion dollars, 23.1% has come from Korean investors, 13.5% from Singapore, 11.4% from USA, 10.4% from Japan while 22.5% was registered by BVI incorporated investors. The majority of the FDI has been chan-nelled into Real Estate and Tourism projects (60.2%) and the next largest recipient has been the Manufacturing and Processing sector at 19.7% of all FDI.
DanangDa Nang Province
60.2%19.7%
5.4%
5.0%3.5% 6.2%
FDI into Danang by SectorFIGURE 1
Source: Danang Investment Promotion Center (IPC)
Real Estate & TourismManufacturing & ProcessingEducationBeverageGarment & FootwearOther
International Flights to DanangTABLE 1
Airline From Vietnam Airlines
Shanghai Airlines
Asiana Airlines
Korean Air
Silk Air
Vietnam Airlines
Dragon Airlines
Air Macau
Guangzhou
Shanghai
Seoul
Seoul
Seoul
Singapore - Siem Riep
Siem Riep
Hong Kong
Vietnam Airlines
Macau
4
2
4
3
6
7
4
5
3
Total International flights per week 38
Flights/Week
Domestic Flights to DanangTABLE 2
Airline From Vietnam Airlines
Jetstar
Jetstar
Vietnam Airlines
Vietjet Air
Vietnam Airlines
Vietnam Airlines
Vietnam Airlines
HCMC
HCMC
HCMC
Hanoi
Hanoi
Hanoi
Nha Trang
Buon Me Thuot
Vietjet Air
Pleiku
73
28
14
62
21
17
3
4
42
Total Domestic flights per week 278
Flights/Week
Source: Various airline websites. Flight schedules are highly subject to seasonality, therefore the figure for total flights per week is a hypothetical figure based on the assumption that all flights are avaialble during the week.
Vietnam Airlines
Da Lat
Hai Phong 7 7
Vietnam Airlines
3 Danang Hotel Market Overview AUGUST 2013
Demand
from Nha Trang). Total domestic arrivals to Danang, which includes domestic flights as well road and rail, was 2,030,000, an increase 10.3% yoy and 1,150,000 in the first half 2013, an increase of 18.0% yoy. It should be noted that Phu Bai Airport in Hue closed temporarily on March 20 for runway repair and is expected to reopen on September 20, therefore domestic ar-rival numbers have been boosted as extra flights are temporarily being diverted to Danang.
In terms of international flights, it is es-timated that both scheduled and char-tered direct flights have delivered 117,000 international arrivals in the first half of 2013. This represents a significantly increase of 94.2% year-on-year and is largely due to the opening of the new terminal that has attracted new international carriers. The frequency of chartered flights from China are relatively stable due to the year round draw of the Crowne Plaza Casino while chartered flights from Russia and Europe
tend to be much more seasonal.
Other modes of arrival include cruise ships with 53 cruise ships carrying close to 60,000 passengers having docked at the Tien Sa Port in the first six month of this year, a healthy increase of 67.6% year-on-year. The City also boasts one of the nation’s largest train stations, while arrivals by car are estimated at only 17,000 for the first 6 months of 2013.
Tourist arrivals have increased every year since 2006, with a compounded annual growth rate of 16.1%. In 2012, total arrivals were 2.7 million, up 12.0% yoy but down from a growth rate of 34.4% achieved in 2011. In the first 6 months of 2013, tourist arrivals were 1.5 million, up 16.4% yoy. Arrivals in Q2 were especially strong due to the International Fireworks Competition held in April, which attracted an estimated 395,000 arrivals and is held every 2 years.
Arrivals are expected to continue to grow by an average of 14.5% per annum to reach 4 million by 2015 and 8 million by 2020. This means that in only 3 years from 2012 - 2015, arrivals are expected to increase by 1.3 million visitors, or a staggering 48% in-crease. Should this forecast prove accurate and with limited additional supply expect-ed to come online during this period, the existing properties can expect a continued upward march in occupancies and room rates, particularly during the high seasons.
International arrivals from China make up an incredible 50% of total international arrivals to Danang. This is no doubt due to the success of the Crowne Plaza Casino attracting Chinese gaming guests on chartered flights. With the recent direct route from Seoul, expect Korean arrivals to overtake those from Thailand.
Although the Russian market dominates arrivals in other coastal destinations such
as Nha Trang and Mui Ne, they are yet to make their presence felt in Danang. One reason for this is that the peak season for Russian tourists, coincides with the coolest temperatures and tail end of the wet season in Danang. However, it seems that midscale resorts are increasingly turning their attention on capturing this market by signing deals with some of the major Rus-sian travel agents who are purchasing large blocks of room inventory. International arrivals from Russia are expected grow strongly as more direct flights become available.
-
500K
1,000K
1,500K
2,000K
2,500K
3,000K
3,500K
4,000K
4,500K
Visitor Arrivals to DanangFIGURE 2
International DomesticForecast
Source: Ministry of Culture, Sport and Tourism and Department of Tourism
China50%
Thailand14%
Korea11%
Australia5%
America5%
Japan5%
Malaysia4%
France3% Singapore
2% Other1%
International Arrivals to Danang by Country of Origin
FIGURE 3
Source: Ministry of Culture, Sport and Tourism and Department of Tourism
Alternaty® Vietnam Hotels + Resorts Newsletter alternaty.com
In only 3 years from 2012 - 2015, arrivals are expected to increase by 1.3 million visitors, or a staggering 48% increase. Should this forecast prove accurate and with limited additional
supply expected to come online during this period, the existing properties can expect a continued upward march in occupancies and room rates, particu-
larly during the high seasons.
Alternaty Opinion
alternaty.com
AUGUST 2013 4Danang Hotel Market Overview
Supply
According to the Danang Department of Culture, Sport and Tourism, as at June 2013, there were 355 hotel and resort establish-ments providing a total of 11,447 rooms. Of these, 54 received 3 - 5 star rankings rep-resenting 5,323 rooms while 301 received 1 - 2 star rankings representing 6,124 rooms. The forecast for 2015, with supply to reach 429 properties and 15,560 rooms is rather optimistic and assumes that all planned developments will proceed as scheduled, which is highly unlikely to be the case.
The Danang market has now welcomed and is well under way in absorbing the majority of new supply that was under development in recent years. Some of the
most recent entrants include the InterCon-tinental, Novotel and Pulchra Resorts.
The future pipeline seems to have run dry in comparison with a few years ago, with most of the few remaining uncompleted projects showing no signs of construction activity and are unlikely to come online any time soon. Two of the notable exceptions are the Melia, which is expected to open by the end of this year with 117 rooms and 10 villas in the first phase. While the Crowne Plaza is undergoing a major extension, and is expected to add 1,000 hotel rooms, with some serviced residences, villas and a shopping mall by 2016.
SeasonalityDanang has a tropical monsoon climate with an average annual temperature of 25.9°C with a peak of 28 - 30 °C in the summer months of June to August and a low of 18 - 23°C during December to Feb-ruary. The dry season lasts from January to August with the driest months being Feb-ruary to April with 23 - 33 mm of rainfall per month. During the wet season, rainfall is 350 - 650 mm per month on average with the wettest month being October.
The summer vacation in Vietnam lasts from May to August which also coincides with the warmest months and high season in Danang for domestic tourists. International tourists from Danang’s key source
markets with cold winter months such as from North East Asia (China, Korea, Japan), Russia and Europe tend to visit during the months of December to February.
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Largest Hotels & Resorts in DanangFIGURE 4
Source: Alternaty
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0100200300400500600700
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May Jun Jul
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FIGURE 5
Source: World Meteorological Organisation
Alternaty® Vietnam Hotels + Resorts Newsletter
5 Danang Hotel Market Overview AUGUST 2013
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Although Danang has a large workforce, the lack of hospitality schools means that it is difficult to find staff with enough skills to work in the 4 and 5 star properties. The larger properties with structured training programs are able to train new staff and progressively move them into more senior roles, while the smaller properties are unable to do so and hence face recruitment challenges. Meanwhile, the large increase in supply in recent years has lead to fierce competition for experienced staff which has put an upward pressure on labour costs. For entry level rank and file positions, labour costs range from US$110 - US$180
per month, increasing to US$500 - US$800 for local middle management level and can further double for local HODs and GMs. Expatriate staff are still by far the most ex-pensive options.
The well developed infrastructure system in Danang means that electricity and utilities tend to be in the range of 5% to 6% of total revenue for efficiently operating properties.
Construction costs in Danang are similar to those in HCMC and Hanoi, with average construction costs for a resort ranging from US$600 psm for a low rise mid scale and self
managed property to US$1,200 - US$1,300 for a resort of an international standard. In certain cases, such as the InterContinental Danang, construction costs can be much higher due to the challenging location and infrastructure requirements as well as the deluxe interiors and decorations. Construc-tion costs of the interior fit out can increase exponentially when predominantly imported materials are used.
Costs
Hotel PerformanceThe performance of the city hotels differ markedly from that of the resorts due to variations in terms of clientele, seasonality and client origin. The city hotels are still dominated by one to three star properties, offering value for money at very low price points. Only in recent times have branded upscale offerings entered the market with the Grand Mercure (Q3 2011) and the No-votel (soft opened in Q2 2013) now offering a better range of options, especially for corporate clients and business travellers.
Within the city hotel segment, due to the low pricing of budget hotels with average room rates in the range of US$15 - US$35 per night it is extremely difficult to achieve a room rate premium at any level. The upscale category is achieving room rates in the range of US$45 per night and has so far succeeded in justifying only a contained price premium over the local products, however, rates remain far below that of the resort segment. It will certainly be interesting to see how room rates and performances are affected with the official opening of the Novotel, which has now
soft opened with some floors remaining to be fitted out. Occupancy ranges from 45% - 65% and tends to be less volatile in city hotels compared with resorts as they are able to mitigate low seasons with MICE and corporate business from HCMC and Hanoi.
In the beachside resorts segment, the internationally managed and high end boutique resorts are achieving average room rates in the range of US$140 per night with the lowest being below US$110 for the newly opened or newly rebrand-ed properties and the upper level being US$170 - US$180 for the more established names. Rates typically fall by 20% - 25% in the low season.
The properties within Hoi An tend to target the economic segment with average room rates ranging from US$35 - US$50 per night for the smaller boutique properties inside the old town and along the river while the beach front resorts are achieving rates in the range of US$95 with the lowest trading at US$75 and best performers achieving US$110 - US$120.
Too many self managed properties still rely on local travel agents as their main sales channel. These properties do not have an in house sales and marketing team and do not put much effort into pushing other sales channels and direct bookings. It seems that maintaining occupancy at any cost is still largely favoured to decreasing room rates as these properties are willing to slash rates in return for a few additional percentage points of occupancy.
Too many self managed properties still rely on local travel agents as their
main sales channel. It seems that maintaining occupancy at any cost
is still largely favoured to decreasing room rates as these properties are willing to slash rates in return for a few additional percentage points of
occupancy.”
Alternaty Opinion
Alternaty® Vietnam Hotels + Resorts Newsletter
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AUGUST 2013 6Danang Hotel Market Overview
Final ThoughtsNo doubt the last few years have been good for Danang. A confluence of factors such as the temporary closure of the airport in Hue, the biennial International Fireworks Festival and the recently upgraded Danang International Airport have all played a part in boosting arrivals and hotel performances. However, there are other factors at play that may leave a more permanent mark on the Danang hospitality landscape which poten-tial investors would be wise not to ignore. The growth in tourist arrivals (both domestic and international) is expected to continue to show solid double digit growth. The new terminal will continue to attract more flights from new destinations, with newly tapped markets such as Russia, China and Korea offering enormous potential which is rein-
forced by the global growth in international travel and increasing propensity to discover new international destinations. In terms of supply, most of the large scale projects have already come online in the past few years and the pipeline that remains is constrained. The current environment, with tight fi-nancing conditions, limited risk appetite, abundance of landowners willing to sell and limited competition may just be the window of opportunity that some have been waiting for and warrant a second look at Danang, for those that are brave enough.
Being a large city offering a diverse range of locations, land prices in Danang vary con-siderably. For beachfront land along Danang Beach which is in high demand, there are much less options available now compared to only a few years ago as practically all land plots have been allocated to investors, both local and foreign. Average sizes tend to range from 3 - 10 ha with asking prices ranging from US$80 - US$120 psm for land approved for commercial use on a long term lease basis and US$120 - US$150 psm for land approved for residential use. In Hoi An, beachfront land is slightly more expensive and ranges from US$170 - US$200 psm.
Within Danang City the asking price of land can be as high as US$5,000 - US$10,000
psm for the smaller development sites in close proximity to the Han River. Land plots with asking prices in the range of US$500 - US$1,000 psm can be found outside the CBD with sizes over 400 sm.
Several development sites are available along Hoang Sa Street in Son Tra District, across the road from the beach, with asking prices in the range of US$800 - US$2,000 psm depending on size and approvals. These prices do not include additional ap-proval and transactions costs and are highly variable depending on the size and specific location of the land.
Land Price
Alternaty® Vietnam Hotels + Resorts Newsletter
7 Vietnam Economics Update
Alternaty® Vietnam Hotels + Resorts Newsletter alternaty.com
AUGUST 2013
Foreign direct investment, both registered and disbursed capital, seems on track to reach the targets set for 2013 with manu-facturing attracting US$10.5 billion (87.6%) and real estate US$580 million (5%) of the total registered capital year to date in July. Disbursed capital reached US$6.7 billion, up 6.4% yoy and representing 61% of the government target for 2013 according to the Ministry of Planning and Investment. Registered capital during the same period was US$11.9 billion, up 120% yoy and reaching 75% of the target. Singaporean investors are leading with US$2.5 billion registered capital in new projects account-ing for 36% while Russian investors are sec-ond with US$1 billion accounting for 15%.
Foreign Direct Investment
Inflation
According to the latest Consumer Price Index numbers, CPI increased by 0.27% in the month of July, the second monthly increase in a row, with headline inflation trailing at 7.29% yoy versus 6.69% in June. Transportation costs registered the biggest increase at 1.34% mainly due to the 3%
hike in gasoline prices in June. Inflation is expected to continue this uptrend in the coming months due to increased heath service prices in Hanoi and cyclical effects. Analysts predict inflation to reach 8% by the end of the year with the government target set at 7%.
Economic Growth
GDP growth YTD in June was 4.9% com-pared with 4.8% in the first quarter and 5.0% in the second quarter. The services sector, excluding real estate, remains the major contributor to growth while produc-tion remains sluggish. The government tar-get of 5.5% GDP growth in 2013 is unlikely to be achieved.
Interest Rates
Interest rates continued to trend down-wards in the first half of 2013, with the SBV reducing benchmark interest rates by 2 percentage points over the period. The most recent cut in interest rates was in May, which was the eighth time the SBV cut rates in little over a year. In July, the SBV
requested banks to expand credit in order to reach the credit growth target of 12% for 2013. Credit growth in the first half of 2013 was only 4.5% but it was significantly higher than the 0.76% achieved in the same period in 2012.
Consumer Price IndexFIGURE 6
Foreign Direct InvestmentFIGURE 9
Gross Domestic ProductFIGURE 8
State Bank of Vietnam Interest Rates FIGURE 7
VietnamEconomics Update
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2007 2008 2009 2010 2011 2012 2013
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Alternaty® Vietnam Hotels + Resorts Newsletteralternaty.com
AUGUST 2013 Industry Conferences and Events
Industry Conferences and Events
Asia Pacific Hotels Investment ConferenceAlternaty was invited to participate in the fifth annual Asia Pacific Hotel Investment Conference (APHIC), organised by Questex Hospitality Group, which was held on 15th and 16th May, 2013. The annual confer-ence forms part of the International Hotel Investment Conference (IHIF) Summit. The two day event was held at the Dusit Thani in Bangkok and attracted almost 300 of the leading hotel owners, investors, operators and developers in the region.
Rudolf Hever, Executive Director chaired one of the featured panel discussions entitled, “Condo Hotel, Villas and Branded Residences – How Best to Accelerate Return of Capital?” and Mauro Gasparotti, Execu-tive Director, was a panellist in the session “Navigating into the future: Vietnam”.
In a live poll conducted during the confer-ence, attendees were asked in which coun-try they would next invest and Thailand was voted number one, followed by Cambodia, Myanmar, Indonesia, Vietnam and the Philippines.
Stuart Lloyd, Acting Publisher, Travel Daily Media (right) chairing the session “Navigating into the future: Vietnam” with panellists to his right Rick Mayo-Smith, Managing Director, Indochina Fund Management; Mauro Gaspar-otti, Executive Director, Alternaty; Craig Douglas, Director, Hospitality, VinaCapital and Bernhard Bohnenberg-er, President, Six Senses Hotels, Resorts & Spas (left).
Rudolf Hever (right) chairing the panel discussion “Condo Hotel, Villas and Branded Residences – How Best to Accelerate Return of Capital?” with panellists to his right Paul Dean, Principal, Dean & Associates; Yuthachai Charnachitta, President and CEO, Italthai Group; Nevius Glussi, Corporate Director of Development, New World Hospitality and Andrew Halturin, previously Project Director and Member of Board, Koh Puos (Cambodia) Invest-ment Group (left).
HOFTEL Asia Conference
Meet the Alternaty team in Hong Kong on 15th and 16th
October 2013 at the next AOCAP conference (Alternative Ownership Conference Asia Pacif ic) entitled “Building the Platform for Growth”. Rudolf Hever will share his views on the Vietnam Tourism market at the session entitled “Regional Round Up – Industry Perspectives from Asia-Pacif ic”.
HOFTEL is an in-ternational associ-ation representing the interests of hotel owners, real estate investors and hospitality franchisees. The association’s mem-
bers collectively own approximately US$45 billion worth of hotel property worldwide. The association holds regular conferences around the globe for its members with the latest conference having been held at the Hyatt Regency in Danang on 27th and 28th of June, 2013. The event attracted attend-ees from Hong Kong, Thailand, Germany, Singapore, Indonesia and Vietnam.
Alternaty was asked to present to the members a detailed update on the Vietnam Hotel Market, which was conducted by Mauro Gasparotti, Executive Director. See our blog at blog.alternaty.com to download the full presentation, or click on the image to directly download the presentation.
9 Alternaty Updates
Alternaty® Vietnam Hotels + Resorts Newsletter alternaty.com
AUGUST 2013
AlternatyUpdates
Common Mistakes in Hotel Planning and Operation
Alternaty is pleased to launch the first issue of a multi part series entitled “Common Mistakes in Hotel Planning and Operation”. The series aims to highlight the most com-mon mistakes made by hotel developers and offers advice on how to avoid them.
This first issue, Common Mistakes in Hotel Design, highlights the most common mis-takes made during the design process that can have long lasting negative impacts on operations. See our blog at blog.alternaty.com to download the full presentation, or click on the image to directly download the presentation.
Alternaty Blog
Alternaty’s very own blog has just been launched! Keep abreast of the newest industry trends, must-read articles in the region and Alternaty’s latest releases. Check it out blog.alternaty.com and don’t forget to participate in the conversation by posting your comments.
Connect with Us: AlternatySocial Media ChannelsWe have been hard at work updating our various social media channels. Subscribe to any of our channels to receive our latest updates.
Hotel Operations Review
No matter how large or small the room inventory of a property may be, all hotels and resorts must have in place standard operating procedures to ensure that the expected level of services are delivered on a consistent basis. Unfortunately, all too often this is not the case, especially in non-brand-ed properties. Owner managers often fall into the trap of thinking that allowing some “flexibility” in service standards is a wise way to cut costs, but of course this is not the case. Instead, a lack of standardised oper-
ating procedures often leads to dissatisfied guests, frustrated staff, operational ineffi-ciencies and a shrinking bottom line for the owner.
Alternaty’s latest service offering, a Hotel Operations Review, is a thorough assess-ment of a hotel/resort’s operations, starting from obtaining an independent and objec-tive perspective of operation, all the way down to implementation of new, fresh and effective operational procedures.
The Alternaty 4-step Process for Hotel Operations Review
1 HEALTH CHECK
Thorough physical inspection of hotel and resort and high level due diligence of operation.
2 DIAGNOSIS
Full operational review of each department.
3 CURE
Implementation of Standard Op-eration Procedures (SOP) tailored specifically for the property.
4 PERIODIC CHECKUP
Monthly supervision.
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Alternaty® Vietnam Hotels + Resorts Newsletter
AUGUST 2013 Investment Opportunities // About Us
+84 933 902 530rudolf.hever@alternaty.com
Rudolf Hever EXECUTIVE DIRECTOR
TE
+84 908 556 492mauro.gasparotti@alternaty.com
TE
Mauro GasparottiEXECUTIVE DIRECTOR
Please don’t hesitate to contact us to discuss any of the contents in this newsletter or for more information on any of the opportunities above. We welcome your comments and suggestions for the next edition. In the meantime, don’t forget to follow us on Twitter, LinkedIn or Face-book to receive the latest updates and opportunities as they become available.
+84 934 345 630nhung.pham@alternaty.com
TE
Nhung PhamEXECUTIVE ASSISTANT
Hot Properties – See our website for more Hot Properties & Enquiries Location Mui NeStatus Operating resort with adjacent cleared development siteScale 50 - 100 room resort on approxi-mately 2 ha of land and approximately 1 ha adjoining development siteDescription Existing upscale resort with a mix of studios, bungalows and an oversized restaurant with extra wide frontage to main road. Adjoining site suitable to develop an additional 100 - 250 keys or apartments/villas for sale.Investment Options 100% equity stake of foreign owned entity, separate purchase of resort or development site and JV partner-ship with developer. The resort is currently self managed therefore option to rebrand is available.
ABOUT US
Alternaty Vietnam Hotels + Resorts Newsletter, published by Alternative Real Estate Service Co., Ltd. (hereafter “Alternaty”), is a news-letter containing information about the hotel and resort market in Vietnam and Indochina region. It is provided for general information purposes only. Whilst making all reasonable effort to provide correct information, no legal responsibility can be accepted by Alternaty for any loss or damage arising out of the use of or reliance on the contents of this newsletter.
DISCLAIMER
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WE SPECIALISE INVilla Management
Alternative OwnershipRental Pool StructuringFractional OwnershipBranded Residences
Download our latest Capability Statement from our website.
Location District 3, HCMCStatus Cleared development site on one of the main arterial roads connecting the airport with the CBD.Scale Approximately 4,000 smDescription A high plot ratio of 12 sufficient for a 28 storey 48,000 sm GFA mixed-use complex with twin towers & a retail podium.Investment Options Outright purchase or option to partner with a strong and reliable local partner with proven track record with several projects successful delivered.
Location Hoi An BeachStatus Cleared and compensated site with approved investment licenseScale 4 ha with 200 m beachfrontDescription 200 key resort / 150 residencesInvestment Options 100% equity stake of Singaporean entity
Location DanangStatus Cleared and compensated site with approved investment license for a mix of hotel, commercial and hotel school.Scale 6 haDescription Option to purchase a single site or whole development project. Investment Options JV partnership with local land owner
Location District 3, HCMCStatus Operating upscale hotel Scale 200 - 300 room upscale hotelDescription The hotel is currently self managed therefore option to rebrand is available.Investment Options Outright purchase or JV with local partnerSingaporean entity
Location My Son, Quang Nam ProvinceStatus Cleared and compensated site with approved investment licenseScale 10 ha with 120 key resort and 100 residencesDescription Hot springs project with 2 drilled 60 .7 °C hot water wells Investment Options 100% equity stake of Singaporean entity
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