Oversupply, legal loopholes overshadow rise of the condotels in Vietnam

Master plan for construction of Southeast Quang Tri Economic Zone The PM has recently approved a master plan for construction of Quang Tri province’s Southeast Quang Tri Economic Zone (EZ) until 2035, with a vision to 2050, aiming to build the zone into an area of vibrant and sustainable economic development and a centre for investment attraction and cargo transshipment in the region, while ensuring national defence and security. The new EZ is expected to contribute to utilising potentials in serving socio-economic development, national defence and the security of the province as well as the whole central region. In addition, the economic zone will be developed into an area of breakthrough development creating an impetus for the province’s socio-economic development, with synchronous and modern infrastructure, civilized urban areas, sustainable environment and effective land use. The planning scale of the zone covers 23,792 hectares, including the entire administrative boundaries of 17 communes and towns to the southeast of Quang Tri province, belong to Hai Lang, Trieu Phong and Gio Linh districts. As oriented by 2050, the Southeast Quang Tri EZ will become a dynamic, modern and effective zone in the central region, in Viet Nam and in ASEAN; a gateway for international exchange to the East Sea of Viet Nam; and an area of sustainable and harmonious development, with attraction to investors, modern and synchronous infrastructure and beautiful urban landscapes. The Southeast Quang Tri EZ features four development zones. Specifically, the zone no. 1, covering 11,469 hectares to the southeast of…... [read more]

Real estate company Worldstar Land launched a new online platform for property brokers, nghemoigioi.vn, on Thursday. — Photo dantri.com.vn HA NOI – Real estate company Worldstar Land launched a new online platform for property brokers, nghemoigioi.vn, on Thursday. The website hopes to enable property brokers to access information on a wide range of real estate projects, from apartment buildings to resort and condo hotel projects. Notably, all projects will be verify projects' legal status, prices and policies for brokers. The website will also provide information about commissions and banking guarantees for all its members. – VNS... [read more]

Investors flood central Vietnam’s Da Nang beaches despite local fears of rising sea levels Workers build an embankment on Thuan Phuoc Beach in Da Nang City’s Lien Chieu District. Like other provinces and cities in the central coastal region, Da Nang has been sufering from erosion and other effects of climate change. Waterfront properties in the central city of Da Nang have become a hot item after a brief lull in the local real estate market owing to the global economic crisis. The market effervescence, especially in the segment of coastal high-class villas and houses, is apparently inured to the dire warnings about the impacts of rising water levels in the sea. Tuoi Tre newspaper recently cited Savills Vietnam â€" a real estate consulting company, as saying many villas in Da Nang were bought even as they were being built. In the third quarter of 2009, there were 387 villas from 6 coastal tourism property projects in Da Nang introduced into the market. Surprisingly, villas from one of those projects, the Olalani project, priced at roughly US$2.5 million each, were all sold out. In another project, the Hyatt Regency, 70 percent of 27 three-bedroom villas, the cheapest of which costs $1.5 million, have been booked. In the Ocean Villas project, divided into three sections, 26 percent of villas whose prices ranged from $420,000 to $720,000 have also been bought. In other projects like Montgomerie Links & Estates and the Son Tra Spa & Resort, sales of villas which cost $500,000…... [read more]

How is luxury defined in Vietnam's hotel industry, how has the luxury hotel market been evolving, and what are the trends ahead? Paul Stoll, chief development officer of Celadon International investigates Vietnam's first Ritz-Carlton Hotel will open in 2015 within The One Ho Chi Minh City Complex I believe the hotel industry requires an overhaul to meet the ever-changing expectations of customers. Hotels have existed for thousands of years and our modern hotel industry commenced with the Ritz Hotel, Paris, in 1898. That's at least how it seems and obviously Monsieur Cesar Ritz, the patron left an impression. Just as Henry Ford revolutionized the automobile insudtry with the conveyor belt, the Ritz style of hospitality has been replicated by companies such as Starwood, Bass, Hilton, Accor, and others, with institutional hospitality creating soulless monsters in line with the globalisation of our time. Obviously, some of the international management companies have realised this and are trying to come up with more personalized boutique hotel brands, for example the W brand from Starwood. "Vietnam's hotel industry needs to be shaken and stirred and hotels repositioned to meet with the expectations of existing and new travellers " Brand mania has taken hold in Vietnam in recent years. I am a great fan of brands however and they do not have to be well established ones. If you brand a property with a well marketed name for lots of money, be sure of the real value it provides for your property, which changes according…... [read more]

Vietnam's hotel industry is in need of a major shake-up. Although the development of five-star luxury hotel properties was initially important for the country to create an image as a destination and to capture inbound travellers, the time has come to focus on middle-class hospitality. Photo: Viet Tuan. I wouldn't say Vietnam's hospitality industry is antique but it's definitely seriously outdated. Change seems to come slowly and shots are often fired in the wrong direction. Every developer believes it easy to develop hotels and earn a profit. The one dream they have in common is to have a five-star hotel, regardless how much they invest, the location or the market demand. The grading seems to make things easier but the attitude complicates things and discloses the variance to international quality standards. I believe therefore that Vietnam's hotel industry requires an overhaul to meet the quality and safety expectations of business partners and customers. Hotels have existed for thousands of years and the modern hotel industry was inaugurated with the Ritz Hotel in Paris, France, in 1898. That's at least how it seems and obviously Monsieur Cesar Ritz, the Patron, left an impression. As with Henry Ford and the automobile industry with the conveyor belt, Ritz-style hospitality has been replaced by branded institutional conveyor belt management companies and others with institutional hospitality, creating soulless monsters in line with the globalisation efforts of our time. This has caused Brand Mania. I am a great fan of brands, and they do not have…... [read more]

Condo hotels - buildings used as both a condominium and a hotel - are a new phenomenon in Vietnam. This form of real estate is catching the attention of investors because of its high liquidity. Condo hotels are expected to be profitable investments. However, to possess this type of vacation home, buyers and investors need to weigh up the difficulties of their target projects. Condo hotel phenomenon in Vietnam Condo hotels are typically high-rise buildings developed and operated as luxury hotels, usually in a major city or resort. The hotels have condominium units which allow someone to own a full-service vacation home. Unlike ordinary apartments, Condo hotels have a reservation system and services like swimming pools, health clubs, nightclubs, restaurants, shops, mailing services and 24 hour room service. Condo hotels are not the same as true hotels, as they allow investors to buy out vacation apartments to live and to rent. In the United States, Condo hotels are one of the most attractive segments of the real estate market. Each month, big real estate brands like Trump or Ritz Carlton build condo hotels in resorts or cities. And this type of real estate has spread to Dubai (the United Arab Emirates) and Berlin (Germany). In Vietnam, the Condo Hotel concept is entirely new, but quickly flourishing since it was introduced, with several first projects like The Nam Hai and Son Tra Resort and Spa. Nha Trang Plaza Hotel invested by Best Western Group is the first true Condo Hotel in…... [read more]

More investors are showing interest in real estate projects in provinces surrounding Ho Chi Minh City like Dong Nai, Binh Duong and Ba Ria - Vung Tau. These localities are expected to be the most active real estate markets in southern Vietnam. Active suburban realty market Binh Duong province started the construction on new Binh Duong City, completed My Phuoc - Tan Van Highway and many crisscrossing roads in the new industrial - service - urban complex, giving a boost to the provincial real estate market. According to Savills Vietnam, in just the second quarter of 2010, a total of 18,200 apartments, villas and townhouses were offered for sale in Binh Duong province. In particular, Di An district accounted for the highest market share of 46 percent, followed by Ben Cat district with 19 percent. This shows that the supply of properties in Binh Duong province is the largest in the southeast of Vietnam. The well-planned and located Green River - My Phuoc 4 project is very appealing to customers. According to Tac Dat Tac Vang Joint Stock Company, the distributor, the project is preparing to offer its third tranche for sale. About 1,100 customers have visited the project. In Vung Tau City, there are many real estate projects, especially tourism property projects and resorts. The demand for real estate in the city is expected to soar in 2011. With overwhelming advantages, many investors consider the city an attractive investment destination for the coming years. In January 2010, Kim To…... [read more]

Tremendous potential Vietnam has a more than 3,260 km coastline with many sandy beaches and spectacular seascapes. The country is famous for its natural landscapes and world-acclaimed natural heritages. These are very favourable elements for the construction of vacation properties or resorts. Besides, the Southeast Asian nation is home to many world-class tourism property projects like Sea Links City (Binh Thuan province), Son Tra Resort & Spa (Da Nang City), Ho Tram Complex (Vung Tau City) and Rong Seaside Resort (Quang Nam province). Furthermore, Vietnam has a stable political background - an ideal safe destination for domestic and international holidaymakers. The tourism industry has also launched many policies to attract more international visitors. According to the Vietnam National Administration of Tourism (VNAT), in 2009, the country welcomed nearly 5 million foreign visitor arrivals and earned nearly US$4 billion from services for foreign tourists. In the first six months of 2010, the number of international arrivals was 2,510,521, up 32.6 percent year on year, including 1,595,224 holidaymakers, up 40.3 percent. In the second quarter of 2010, no new 3-5 star hotels were opened but nine hotels were ranked up to 3-star and one to 4-star. Room occupancy rates climbed 10-20 percent from 2009, showing better business results of hotels and resorts. In 2010, Vietnam aims to attract 6 - 6.5 million international visitors and earn revenue of US$4.5 billion. The increase in both volume of arrivals and revenues is a key to open up many opportunities for tourism property investors. Another…... [read more]

The condo-hotel is an alien concept for Vietnam but developers now believe the time is right to introduce this product to the market. Duc Hanh examines what the attractions are for investors and owners. So, first of all, what is a condo-hotel or a condotel? It’s a condominium project, which is operated as a hotel with a registration desk, cleaning service and more. It’s a popular concept around the world, but brand new to Vietnam. Second question – what’s the appeal? The units are individually owned giving owners the option to rent out their unit via the hotel’s rental programme. Holidaymakers can rent the room out like any other hotel room, except they can enjoy those homely extras – such as a fully-equipped kitchen – while availing of all the luxury amenities like a swimming pool, a fitness center or 24-hour service. Typically condotels are high-rise buildings in either major cities or holiday destinations. Owners can enjoy the benefits of the hotel chain’s marketing campaigns to lure in renters and trust the management to ensure a comfortable stay. Pros and cons There are pros and cons to condotel ownership. Pros include rental income to offset ownership expenses, a great vacation home, a cared-for home and potential price appreciation. On the down side, you might have to make a reservation for your own unit several days or weeks in advance. There are risks associated with all hotel ownership as well, such as occupancy rates that might be based on general economic…... [read more]

Property developers have shifted their investment to condo-hotels, which are popular in Miami, Las Vegas and New York City in the US, as well as Germany and the UAE. — VNA/VNS Photo Bui Tuong Property developers have shifted their investment to the promising real-estate segment of condo-hotels, according to a report in the Thoi bao kinh te Viet Nam (Vietnam Economic Times) newspaper. Condo-hotels (or condo-tels) are typically high-rise buildings developed and operated as luxury hotels that include condominiums. They are usually located in major cities and resorts. Condotels are popular in Miami, Las Vegas and New York City in the US, as well as Germany and the UAE. Development of such buildings could become more common in Viet Nam, which has 3,260 kilometres of coastline and many attractive beaches. The Best Western Premier Nha Trang Plaza Hotel condotel project by Havana JSC Co, in collaboration with Best Western Corp, features a 40-storey building with 240 luxury apartments that have areas of 126-280sq.m each. It is under construction and expected to be completed by early central next year. Another project, Olalani Resort and Condotel project adjacent to Da Nang City's North My An Beach, funded by United Trust Viet Nam Group and PetroVietnam's Joint-Stock Financial Corporation, includes three large-size villas, 88 high-end apartments and 197 hotel rooms, with many services such as a spa, golf course and sport centre. It was put into operation last year. In central Binh Thuan Province's Phan Thiet City, Rang Dong Construction Corporation has built…... [read more]




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