Vietnamese Tiếng Việt | Wednesday, January 23, 2019 | Advertise with Us
Text Size

Who are the owners of 5-star hotels in HCM City and Hanoi?

(0 votes, average 0 out of 5)

Foreign investors hold a stake in about 60 percent of 5-star hotels in Hanoi and HCMC, and are continuing to pour money into the profitable hotel sector. 

vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, 5-star hotel, HCMC, VNAT

A survey conducted by VnExpress found that of 19 5-star hotels located in the most advantageous positions in HCMC, 10 hotels are foreign invested. 

The market approach preferred by foreigners is to acquire enough shares to have the right to control the hotels. Investors in Hong Kong, Singapore and South Korea have been increasing their presence at many high-end luxury hotels in HCMC.

Some decades ago, partnering with Vietnamese real estate developers, Singaporeans poured money into Sheraton, Caravelle, InterContinental, Asiana Saigon and Sofitel hotels

In 1992, together with Saigontourist, Glynhill Investments Vietnam set up a joint venture – Chains Caravelle – to upgrade Caravelle Hotel with $61.5 million.

In 1994, another investor from Singapore – Lam Ho Investments – joined hands with Saigontourist to build Sheraton Hotel, capitalized at $97 million.

Pan Pacific Hotel Group (PPHG), a subsidiary of UOL Group, one of Singapore’s leading real estate groups, holds 26 percent of Sofitel Sai Gon shares.

Meanwhile, investors from Hong Kong hold shares at New World, Renaissance and Equatorial hotels.

Keck Seng Investments is the best known Hong Kong investor which invests in two 5-star hotels in HCMC. The real estate tycoon of the Fragrant Harbor holds 64 percent of shares in Sheraton and has 25 percent of interests in Caravelle hotels.

South Koreans are also big investors in Vietnam’s hotel market. Lotte Legend on Ton Duc Thang street, with a view over the Saigon River, is one.

In 2013, Lotte acquired 70 percent of Legend shares from Kotobuki Group, becoming the biggest shareholder of the hotel. 

In Hanoi, foreign investors hold a controlling stake in nine out of 16 5-star hotels managed by international brands. 

These hotels, located in the most advantageous positions in the capital city, all have been operating for more than 10 years, including Intercontinental Hanoi Westlake, Melia, Sheraton, Daewoo, Nikko and Pan Pacific. Two of the hotels are located on the West Lake side, belonging to Berjaya Corporation Bhd owned by Vincent Tan, a Malaysian billionaire.

Vo Quoc Phuong Trang from Jones Lang LaSalle commented that over many decades, foreign investors are still eyeing the 5-star hotel market segment in Hanoi and HCMC.

Vietnam is among three countries in Asia Pacific which have caught special attention from foreign investors, including Singapore, Hong Kong, South Korea in the past, and Japan and Australia recently.


Source: VNN

Maybe You Also Interesting :

» Solo contemporary dance “Mutante” to be performed in HCMC

Vietnamese hip-hop star Suboi, young EDM artist Teddy Chilla, and artist and choreographer Pierre Larauza and Emmanuelle Vincent from Brussels-based studio...

» Sound installation Soundtracks to be held in HCMC

Artist Phung Tien Son will hold a solo exhibition featuring his sound installation Soundtracks at independent art space MoT+++ in HCMC from February 23 to...

» HCMC considers preventive solutions to flooding

The HCMC Center for Flood Control Program has proposed building seven anti-flood reservoirs with Japanese cross-wave technology, for total costs of VND475...