While
the other investors get bogged down in the frozen real estate market, the ones
who poured money into high-end coastal resorts now can pocket big money they
earn from the right investment deals.
The diagram of average
room revenue of the 4-5 star coastal resorts in the area from Da Nang to Nha
Trang City saw a jump in 2013. The upward trend continues since the prosperous
2012.
Adam Bury, a senior
executive of CBRE, a real estate service provider, noted a surprise that the
average room rate and room occupancy rate of the coastal five-star hotels in Da
Nang both are far higher than that in Hanoi and HCM City.
The average hotel room
rate at the 5-star hotels in the area of Da Nang and Hoi An ancient town is now
the highest in Vietnam after making a 3.6 percent increase in 2013.
With 3,800 4-5 star rooms
and the regular room occupancy rate of 70-80 percent, the hotels have been
running very well, which is quite a big surprise in the eyes of the investors
who keep pessimistic in the current difficult conditions of the national
economy.
The big changes have
created new “brands” to the area in the Vietnam’s tourism map. Just some days
ago, Da Nang airport received a lot of special aircraft of the billionaires
from the world’s big conglomerates who came to attend an important finance
conference.
The place where the
billionaires gathered in Da Nang was a well known resort on the Son Tra
peninsula which served 100 VIP guests – the international capitalists and
journalists for four days.
With the event, Da Nang
has become a new brand that catches the eyes of the international event
organizers as a tourism city with standardized services: the standard air
traffic and in-land services, the international airport with 47 international
and 247 domestic flights per week, the high end coastal resorts with well known
cooks from Europe managed by foreign groups, the luxurious golf courses nearby
and the ready taxi helicopter service.
Analysts commented that
it is a wise move for coastal resorts to make investments to attract MICE
(meeting, incentives, conference, exhibition) tourists for now, when the
world’s tourism market witnesses a sharp decline.
The conferences of
international organizations or multi-national groups, therefore, have become
the “aiming points” of most of the event organizers and relevant service
providers.
The developers of the 4-5
star resorts and hotels in the coastal area have joined forces to set up a sea
tourism association which gathers the strength of the members to promote
tourism in the area, attract big conferences and international golf
tournaments.
While coastal resorts and
hotels have been prospering, the hotels in the center of the cities, from
luxurious to popular, have to struggle hard to exist. The hotel room rate and
the room occupancy rate of the hotels in the area have tumbled for the third
consecutive years.
Also according to CBRE,
the room occupancy rate there is 20-40 percent, while the average room rate is
incredibly low. Especially, the food and coffee service there have the prices
equal to that at middle class restaurants.
The hotel supply has
increased rapidly by 1,000 3-5 star hotel rooms a year. Hundreds of 1-2 star
hotels developed by the investors from Hanoi, HCM City and Da Nang have arisen
over the last three years.
Danang Intercontinental Resort Review
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