Joining hands with BIM and Sun Group, a foreign real estate “giant” announced to double the number of hotels in Vietnam to anticipate the recovery in the next 3-5 years.
After 2 years of outbreak of the pandemic and having to “freeze” for almost 2 years, the tourism and resort real estate market according to insiders is entering an exciting period again. As proof, the overload of hotel bookings and the sold out of flight tickets for the upcoming holiday season of April 30 are clear manifestations of the above trend.
“Given pent-up travel demand, we’ve seen a strong rebound in international travel. Visitors tend to stay longer than before the pandemic and book larger room types such as suites and apartments to fully enjoy your stay.
We have also seen signs of a return to medium and long-haul flights from key markets such as South Korea, Singapore, Japan, the US and Australia. SDR statistics for February 2022 show that occupancy of hotels in Vietnam has increased by 47% compared to the same period in 2021.
From January to March 2022 in the online search for tourist destinations, Da Nang and Ho Chi Minh City are still in the top 10 most searched for Southeast Asian and Korean destinations by international tourists. .
This is compelling evidence that strengthens our belief that travel demand in many of our markets around the world has returned to 2019 levels.”said Mr. Rajit Sukumaran, Managing Director of IHG Southeast Asia and Korea.
As one of the largest hotel groups in the world, IHG currently owns and operates a system of 15 hotels in Vietnam and 18 new hotels under development, expected to put into operation more than 6,000 rooms in the coming year. year 2027.
“This is an extremely exciting time for IHG in Vietnam. Vietnam is a market where we aim for strong growth as demand for hotel stays is returning to rapid growth on a global scale. country”, he emphasized.
Therefore, IHG soon planned to double the number of hotels in Vietnam within the next 3-5 years, aiming to meet the growing demand for accommodation as well as the need for cooperation from the owners. In particular, with current major partners, Sun Group and BIM Group, IHG said that they are still working together to develop in the direction of testing new things, making a difference in the future.
As for BIM Group, IHG will continue to develop cooperation with them in the Ha Long Bay area, including Intercontinental. The company also signed a large cooperation contract with Sun Group last year on managing the hotel portfolio in Ba Na Hills, Yoko Park Quang Hanh.
“We not only build cooperation with existing partners but also with new partners. IHG has a policy of expanding everywhere in Vietnam such as Phu Quoc, Ba Na, Ha Long, Sapa, not necessarily focusing the center of the Northern region”, representative added.
Looking at the current M&A trend, he affirmed that there are opportunities in the market, and there are many sources of money waiting to buy back hotels and resorts. There are many hotels in the market that have had difficulties in the past 2 years. However, in reality, the situation is not like that on a large scale, the government and banks as well as hotels are looking for ways to keep and continue to operate their hotels in a sustainable way.
M&A does not happen on a large scale as people think. However, there is another trend that is the trend of transformation in the hotel and resort systems. For example, there is a hotel that was previously operated by a local or regional unit, now they will use big brands and large corporations.
“So, in the past, the number of IHGs signing contracts for the annual conversion of hotels accounted for 10%, but last year this number increased by more than 50% in Southeast Asia as well as Korea.”the representative added.
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