Vietnam has large potential for hotel investment

Potential for investing in hotels in Vietnam is promising, especially for investors who target long term growth, said Robert McIntosh, CBRE Hotels Asia Pacific Executive Director.

He made the statement at a conference on hotel investment strategy, held by CBRE Vietnam in Ho Chi Minh City on September 27.

The hotel segment in the Asian cities has bounced back rapidly after the financial crisis with revenue earnings registered from the rooms reaching at least 80 percent compared to the pre-crisis period.

Despite the stagnation in the real estate sector, the hotel market in Hanoi and Ho Chi Minh City has seen an impressive growth over the years with the number of room occupants rising by 5-10 percent over 2010.

McIntosh said that with the high interest rates offered by banks in Vietnam, most three-star hotels have earned a big profit for investors. However, these cheap hotels should be more efficient in designs and operations, said the experts from CBRE Vietnam.

Also at the seminar, CBRE experts spoke of different to invest in hotels, through selling or re-renting and emphasized the important role of management and advisory agencies in helping investors build and operate the hotels.

Regarding the establishment of a hotel investment trust in Vietnam, McIntosh said the model is still new in the country, therefore, investors should consider it carefully to develop a suitable legal framework for it. (Source: VOV)