alternaty hotels + resort newsletter danang august 2013

7/29/2019 Alternaty Hotels + Resort Newsletter Danang August 2013

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Danang HotelMarket Overview

Vietnam

Hotels + ResortsNewsletter

Danang Hotel Market Overview

Vietnam Economics Update

Industry Conferences and Events

Alternaty Updates

Investment Opportunities

About Us

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AUGUST 2013

IN THIS ISSUE

INTRODUCTION

Danang is a destination familiar with many

tourists and investors from both Vietnamand abroad. Its success in attracting a

large share of tourists and FDI in Vietnam

is largely attributable to the progressive

and determined local authorities who have

helped the City earn its reputation as a no

nonsense place for doing business. This led

to a construction boom in 2009 and 2010

and a corresponding oversupply in the years

that followed. However, the relentless waves

of tourist arrivals ensured that the oversup-

ply was short lived and today the hotels and

resorts sector is turning in some surprisingly

impressive results. But will this last?

LocationDanang City, one of the ve independent

municipalities in Vietnam, is located on the

coast in Central Vietnam, 763 km south of

Hanoi and 947 km north of Ho Chi Minh

City, with 92 km of coastline. The City servesas a national hub for air, land, rail and sea

routes as well as an important regional

gateway being located at one end of the

The City consistently achieves GDP

growth that ranks among the highest

in the country which is a result of the

local authoritys determination in

attracting investment in real estate,

manufacturing and infrastructure

projects. The City has set a high

benchmark in terms of how to facili-

tate investment from foreign investors

as well as how to orderly plan and

execute real estate and infrastructure

projects.

Alternaty Opinion

The majority of the FDI has been

channelled into real estate and tour-

ism projects however the future focus

has sharpened on sectors such as

clean tech industrial parks with IT and

data centres, hotel schools and inter-

national universities in an attempt

to turn Danang into a truly modern

international investment hub.

Alternaty OpinionEast-West Economic Corridor (EWEC) cross-

ing Myanmar, Laos, Thailand and Vietnam.

The latest ocial population estimate which

was conducted in 2012 was 968,000 personsmaking it the fth largest city in Vietnam af-

ter HCMC, Hanoi, Hai Phong and Can Tho.

The City has a total land area of 1,283 skm.

Danang is one of the major tourist destina-

tions in Vietnam, with several white sandybeaches, among them Danang Beach, a

large choice of accommodation options

and well developed infrastructure. The City

is surrounded and protected by the moun-

tains and the sea. Within 100 km there areseveral UNESCO World Heritage Sites such

as the ancient imperial city of Hue, the old

town of Hoi An as well as the My Son ruins.


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2Phu Quoc Hotel Market Overview

Alternaty Vietnam Hotels + Resorts Newsletteralternaty.com

AUGUST 2013

Google

Most visitors arrive by ight, to Danang In-

ternational Airport, which is the third bus-

iest airport in the country after HCMC and

Hanoi airports. Located just 3 km from the

city centre, the airport recently underwent

a major upgrade with a brand new 3 storey

36,600 sm terminal having been complet-

ed at the end of 2011. The two 45 m wide

runways can accommodate planes as large

as Boeing 767s and Airbus A320s and could

handle up to 100 to 150 ights per day.

This translates to a capacity currently of 6

million passengers per annum for the new

terminal, which is expected to increase to a

capacity of 10 million by 2020.

Currently there are approximately 280 do-

mestic ights to Danang per week (includ-

ing 143 from HCMC, 97 from Hanoi and 17

Access

The City consistently achieves GDP growth

that ranks among the highest in the coun-

try, with 9.1% in 2012 (down from 13% in

2011) compared to Vietnam (5.03%), HCMC

(9.2%) and Hanoi (8.1%) during the same

period. The economy was until recently

ranked as the most competitive in the

country according to the PCI (Provincial

Competitiveness Index) achieving 1st place

for 3 consecutive years from 2008 - 2010.

However, in the latest rankings conducted

in 2012, the City had slipped down to 12th

place from 63 having lost competiveness in

categories including labour training, access

to land and depth of legal institutions.

Being one of the major real estate develop-

ment and industrial centres in the country,

Danang is also one of the major recipients

of Foreign Direct Investment. Of the 251

FDI projects invested to date, worth US$3.1

billion dollars, 23.1% has come from Korean

investors, 13.5% from Singapore, 11.4% from

USA, 10.4% from Japan while 22.5% was

registered by BVI incorporated investors.

The majority of the FDI has been chan-

nelled into Real Estate and Tourism projects

(60.2%) and the next largest recipient hasbeen the Manufacturing and Processing

sector at 19.7% of all FDI.

DanangDa Nang Province

60.2%19.7%

5.4%

5.0%

3.5%6.2%

FDI into Danang by Sector

FIGURE 1

Source: Danang Investment Promotion Center (IPC)

Real Estate & Tourism

Manufacturing & Processing

Education

Beverage

Garment & Footwear

Other

International Flights to Danang

TABLE 1

Airline From

Vietnam Airlines

Shanghai Airlines

Asiana Airlines

Korean Air

Silk Air

Vietnam Airlines

Dragon Airlines

Air Macau

Guangzhou

Shanghai

Seoul

Seoul

Seoul

Singapore - Siem Riep

Siem Riep

Hong Kong

Vietnam Airlines

Macau

4

2

4

3

6

7

4

5

3

Total International fights per week 38

Flights/Week

Domestic Flights to Danang

TABLE 2

Airline From

Vietnam Airlines

Jetstar

Jetstar

Vietnam Airlines

Vietjet Air

Vietnam Airlines

Vietnam Airlines

Vietnam Airlines

HCMC

HCMC

HCMC

Hanoi

Hanoi

Hanoi

Nha Trang

Buon Me Thuot

Vietjet Air

Pleiku

73

28

14

62

21

17

3

4

42

Total Domestic fights per week 278

Flights/Week

Source: Various airline websites. Flight schedules are highly subject to seasonality,therefore the gure for total ights per week is a hypothetical gure based on theassumption that all ights are avaialble during the week.

Vietnam Airlines

Da Lat

Hai Phong 77

Vietnam Airlines


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3 Danang Hotel Market Overview AUGUST 2013

Demand

from Nha Trang). Total domestic arrivals to

Danang, which includes domestic ights

as well road and rail, was 2,030,000, an

increase 10.3% yoy and 1,150,000 in the

rst half 2013, an increase of 18.0% yoy. It

should be noted that Phu Bai Airport in

Hue closed temporarily on March 20 for

runway repair and is expected to reopen

on September 20, therefore domestic ar-

rival numbers have been boosted as extra

ights are temporarily being diverted to

Danang.

In terms of international ights, it is es-

timated that both scheduled and char-

tered direct ights have delivered 117,000

international arrivals in the rst half of 2013.

This represents a signicantly increase of

94.2% year-on-year and is largely due to

the opening of the new terminal that has

attracted new international carriers. The

frequency of chartered ights from China

are relatively stable due to the year round

draw of the Crowne Plaza Casino while

chartered ights from Russia and Europe

tend to be much more seasonal.

Other modes of arrival include cruise

ships with 53 cruise ships carrying close to

60,000 passengers having docked at the

Tien Sa Port in the rst six month of this

year, a healthy increase of 67.6% year-

on-year. The City also boasts one of the

nations largest train stations, while arrivals

by car are estimated at only 17,000 for the

rst 6 months of 2013.

Tourist arrivals have increased every year

since 2006, with a compounded annual

growth rate of 16.1%. In 2012, total arrivals

were 2.7 million, up 12.0% yoy but down

from a growth rate of 34.4% achieved in

2011. In the rst 6 months of 2013, tourist

arrivals were 1.5 million, up 16.4% yoy.

Arrivals in Q2 were especially strong due

to the International Fireworks Competition

held in April, which attracted an estimated

395,000 arrivals and is held every 2 years.

Arrivals are expected to continue to growby an average of 14.5% per annum to reach

4 million by 2015 and 8 million by 2020.

This means that in only 3 years from 2012

- 2015, arrivals are expected to increase by

1.3 million visitors, or a staggering 48% in-

crease. Should this forecast prove accurate

and with limited additional supply expect-

ed to come online during this period, the

existing properties can expect a continued

upward march in occupancies and room

rates, particularly during the high seasons.

International arrivals from China make up

an incredible 50% of total international

arrivals to Danang. This is no doubt due

to the success of the Crowne Plaza Casino

attracting Chinese gaming guests on

chartered ights. With the recent direct

route from Seoul, expect Korean arrivals to

overtake those from Thailand.

Although the Russian market dominates

arrivals in other coastal destinations such

as Nha Trang and Mui Ne, they are yet to

make their presence felt in Danang. One

reason for this is that the peak season for

Russian tourists, coincides with the coolest

temperatures and tail end of the wet

season in Danang. However, it seems that

midscale resorts are increasingly turning

their attention on capturing this market by

signing deals with some of the major Rus-

sian travel agents who are purchasing large

blocks of room inventory. International

arrivals from Russia are expected grow

strongly as more direct ights become

available.

-

500K

1,000K

1,500K

2,000K

2,500K

3,000K

3,500K

4,000K

4,500K

Visitor Arrivals to Danang

FIGURE 2

International Domestic

Forecast

Source: Ministry of Culture, Spor t and Tourism and Departmentof Tourism

China

50%

Thailand

14%

Korea

11%

Australia5%

America

5%

Japan

5%

Malaysia

4%

France3% Singapore2%

Other

1%

International Arrivals to Danang

by Country of Origin

FIGURE 3

Alternaty Vietnam Hotels + Resorts Newsletter alternaty.com

In only 3 years from 2012 - 2015,

arrivals are expected to increase by 1.3

million visitors, or a staggering 48%

increase. Should this forecast prove

accurate and with limited additional

supply expected to come online during

this period, the existing properties can

expect a continued upward march in

occupancies and room rates, particu-

larly during the high seasons.

Alternaty Opinion


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alternaty.com

AUGUST 2013 4Danang Hotel Market Overview

Supply

According to the Danang Department of

Culture, Sport and Tourism, as at June 2013,

there were 355 hotel and resort establish-

ments providing a total of 11,447 rooms. Of

these, 54 received 3 - 5 star rankings rep-

resenting 5,323 rooms while 301 received 1

- 2 star rankings representing 6,124 rooms.

The forecast for 2015, with supply to reach

429 properties and 15,560 rooms is rather

optimistic and assumes that all planned

developments will proceed as scheduled,

which is highly unlikely to be the case.

The Danang market has now welcomed

and is well under way in absorbing the

majority of new supply that was under

development in recent years. Some of the

most recent entrants include the InterCon-

tinental, Novotel and Pulchra Resorts.

The future pipeline seems to have run dry

in comparison with a few years ago, with

most of the few remaining uncompleted

projects showing no signs of construction

activity and are unlikely to come online any

time soon. Two of the notable exceptions

are the Melia, which is expected to open by

the end of this year with 117 rooms and 10

villas in the rst phase. While the Crowne

Plaza is undergoing a major extension,and is expected to add 1,000 hotel rooms,

with some serviced residences, villas and a

shopping mall by 2016.

SeasonalityDanang has a tropical monsoon climate

with an average annual temperature of

25.9C with a peak of 28 - 30 C in the

summer months of June to August and a

low of 18 - 23C during December to Feb-

ruary. The dry season lasts from January to

August with the driest months being Feb-

ruary to April with 23 - 33 mm of rainfall

per month. During the wet season, rainfall

is 350 - 650 mm per month on average

with the wettest month being October.

The summer vacation in Vietnam lasts f rom

May to August which also coincides withthe warmest months and high season in

Danang for domestic tourists. International

tourists from Danangs key source

markets with cold winter months such asfrom North East Asia (China, Korea, Japan),

Russia and Europe tend to visit during the

months of December to February.

0

100

200

300

400

500

600

CrownePlazaDanang

HyattRegency

NovotelDanangPremier

Mercure

HoangAnhPlazaHotelDanang

VinpearlLuxuryDanang

FuramaResort

InterContinential

Pullman

GreenPlazaDanang

DanangHotel

CongDoanThanhBinh

SandyBeachResort

EdenPlazaDanang

NorthernHotelDanang

VinhTrungPlaza

Brilliant

DanangRiversideHotel

BachDangRiversideHotel

FushionMaia

NumberofRooms

Largest Hotels & Resorts in Danang

FIGURE 4

Source: Alternaty

0

5

10

15

20

25

30

35

0

100

200

300

400

500

600

700

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Temperature(C

)

Rainfall(mm)

Rainfall and Average

Temperature in Danang

FIGURE 5

Source: World Meteorological Organisation

wsletter


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5 Danang Hotel Market Overview AUGUST 2013

alternaty.com

Although Danang has a large workforce,

the lack of hospitality schools means that

it is dicult to nd sta with enough skills

to work in the 4 and 5 star properties. The

larger properties with structured training

programs are able to train new sta and

progressively move them into more senior

roles, while the smaller properties are

unable to do so and hence face recruitment

challenges. Meanwhile, the large increase

in supply in recent years has lead to erce

competition for experienced sta which

has put an upward pressure on labour

costs. For entry level rank and le positions,

labour costs range from US$110 - US$180

per month, increasing to US$500 - US$800

for local middle management level and can

further double for local HODs and GMs.

Expatriate sta are still by far the most ex-

pensive options.

The well developed infrastructure system in

Danang means that electricity and utilities

tend to be in the range of 5% to 6% of total

revenue for eciently operating properties.

Construction costs in Danang are similar

to those in HCMC and Hanoi, with average

construction costs for a resort ranging from

US$600 psm for a low rise mid scale and self

managed property to US$1,200 - US$1,300

for a resort of an international standard. In

certain cases, such as the InterContinental

Danang, construction costs can be much

higher due to the challenging location and

infrastructure requirements as well as the

deluxe interiors and decorations. Construc-

tion costs of the interior t out can increase

exponentially when predominantly imported

materials are used.

Costs

Hotel PerformanceThe performance of the city hotels dier

markedly from that of the resorts due to

variations in terms of clientele, seasonality

and client origin. The city hotels are still

dominated by one to three star properties,

oering value for money at very low price

points. Only in recent times have branded

upscale oerings entered the market with

the Grand Mercure (Q3 2011) and the No-

votel (soft opened in Q2 2013) now oering

a better range of options, especially for

corporate clients and business travellers.

Within the city hotel segment, due to the

low pricing of budget hotels with average

room rates in the range of US$15 - US$35

per night it is extremely dicult to achieve

a room rate premium at any level. The

upscale category is achieving room rates

in the range of US$45 per night and

has so far succeeded in justifying only a

contained price premium over the local

products, however, rates remain far below

that of the resort segment. It will certainly

be interesting to see how room rates and

performances are aected with the ocial

opening of the Novotel, which has now

soft opened with some oors remaining to

be tted out. Occupancy ranges from 45%

- 65% and tends to be less volatile in city

hotels compared with resorts as they are

able to mitigate low seasons with MICE and

corporate business from HCMC and Hanoi.

In the beachside resorts segment, the

internationally managed and high end

boutique resorts are achieving average

room rates in the range of US$140 per

night with the lowest being below US$110

for the newly opened or newly rebrand-

ed properties and the upper level being

US$170 - US$180 for the more established

names. Rates typically fall by 20% - 25% in

the low season.

The properties within Hoi An tend to target

the economic segment with average room

rates ranging from US$35 - US$50 per

night for the smaller boutique properties

inside the old town and along the river

while the beach front resorts are achieving

rates in the range of US$95 with the lowest

trading at US$75 and best performers

achieving US$110 - US$120.

Too many self managed properties still rely

on local travel agents as their main sales

channel. These properties do not have an

in house sales and marketing team and

do not put much eort into pushing other

sales channels and direct bookings. It

seems that maintaining occupancy at any

cost is still largely favoured to decreasing

room rates as these properties are willing

to slash rates in return for a few additional

percentage points of occupancy.

Too many self managed properties

still rely on local travel agents as their

main sales channel. It seems that

maintaining occupancy at any cost

is still largely favoured to decreasing

room rates as these properties are

willing to slash rates in return for a

few additional percentage points of

occupancy.

Alternaty Opinion

Alternaty Vietnam Hotels + Resorts Newsletter


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alternaty.com

AUGUST 2013 6Danang Hotel Market Overview

Final ThoughtsNo doubt the last few years have been good

for Danang. A conuence of factors such

as the temporary closure of the airport in

Hue, the biennial International Fireworks

Festival and the recently upgraded Danang

International Airport have all played a partin boosting arrivals and hotel performances.

However, there are other factors at play that

may leave a more permanent mark on the

Danang hospitality landscape which poten-

tial investors would be wise not to ignore.

The growth in tourist arrivals (both domestic

and international) is expected to continue

to show solid double digit growth. The new

terminal will continue to attract more ights

from new destinations, with newly tapped

markets such as Russia, China and Korea

oering enormous potential which is rein-

forced by the global growth in international

travel and increasing propensity to discover

new international destinations. In terms of

supply, most of the large scale projects have

already come online in the past few years

and the pipeline that remains is constrained.The current environment, with tight -

nancing conditions, limited risk appetite,

abundance of landowners willing to sell and

limited competition may just be the window

of opportunity that some have been waiting

for and warrant a second look at Danang,

for those that are brave enough.

Being a large city oering a diverse range of

locations, land prices in Danang vary con-

siderably. For beachfront land along Danang

Beach which is in high demand, there are

much less options available now compared

to only a few years ago as practically all

land plots have been allocated to investors,

both local and foreign. Average sizes tend

to range from 3 - 10 ha with asking prices

ranging from US$80 - US$120 psm for land

approved for commercial use on a long term

lease basis and US$120 - US$150 psm for

land approved for residential use. In Hoi An,

beachfront land is slightly more expensive

and ranges from US$170 - US$200 psm.

Within Danang City the asking price of land

can be as high as US$5,000 - US$10,000

psm for the smaller development sites in

close proximity to the Han River. Land plots

with asking prices in the range of US$500 -

US$1,000 psm can be found outside the CBD

with sizes over 400 sm.

Several development sites are available

along Hoang Sa Street in Son Tra District,

across the road from the beach, with asking

prices in the range of US$800 - US$2,000

psm depending on size and approvals.

These prices do not include additional ap-

proval and transactions costs and are highly

variable depending on the size and specic

location of the land.

Land Price

Resorts Newsletter


7/10

7 Vietnam Economics Update


AUGUST 2013

Foreign direct investment, both registered

and disbursed capital, seems on track to

reach the targets set for 2013 with manu-

facturing attracting US$10.5 billion (87.6%)

and real estate US$580 million (5%) of the

total registered capital year to date in July.

Disbursed capital reached US$6.7 billion,

up 6.4% yoy and representing 61% of the

government target for 2013 according to

the Ministry of Planning and Investment.

Registered capital during the same period

was US$11.9 billion, up 120% yoy and

reaching 75% of the target. Singaporean

investors are leading with US$2.5 billionregistered capital in new projects account-

ing for 36% while Russian investors are sec-

ond with US$1 billion accounting for 15%.

Foreign Direct Investment

Infation

According to the latest Consumer Price

Index numbers, CPI increased by 0.27%

in the month of July, the second monthly

increase in a row, with headline ination

trailing at 7.29% yoy versus 6.69% in June.

Transportation costs registered the biggest

increase at 1.34% mainly due to the 3%

hike in gasoline prices in June. Ination is

expected to continue this uptrend in the

coming months due to increased heath

service prices in Hanoi and cyclical eects.

Analysts predict ination to reach 8% by

the end of the year with the government

target set at 7%.

Economic Growth

GDP growth YTD in June was 4.9% com-

pared with 4.8% in the rst quarter and

5.0% in the second quarter. The services

sector, excluding real estate, remains the

major contributor to growth while produc-

tion remains sluggish. The government tar-

get of 5.5% GDP growth in 2013 is unlikely

to be achieved.

Interest Rates

Interest rates continued to trend down-

wards in the rst half of 2013, with the SBV

reducing benchmark interest rates by 2

percentage points over the period. The

most recent cut in interest rates was inMay, which was the eighth time the SBV cut

rates in little over a year. In July, the SBV

requested banks to expand credit in order

to reach the credit growth target of 12%

for 2013. Credit growth in the rst half of

2013 was only 4.5% but it was signicantly

higher than the 0.76% achieved in the sameperiod in 2012.

Consumer Price Index

FIGURE 6

Foreign Direct Investment

FIGURE 9

Gross Domestic Product

FIGURE 8

State Bank of Vietnam Interest Rates

FIGURE 7

VietnamEconomics Update

0

5

10

15

20

25

30

Y-o-YPriceIndex(%)

2007 2008 2009 2010 2011 2012 2013Source: General Statistics Oce of Vietnam

Housing and Construction Materials Consumer Price Index (Y-o-Y)

2007 2008 2009 2010 2011 2012 2013

InterestRate(%)

0

5

10

15

20

Base Rate

Source: State Bank of Vietnam

Discount Rate Renancing Rate

0

1

2

3

4

5

6

7

8

9

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011 2012 6M 2013

Source: General Statistics Oce of Vietnam

Real GDP Growth (%)Nominal GDP

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

2008 2009 2010 2011 2012 6M 2013

Source: General Statistics Oce of Vietnam

Registered Capital Disbursed Capital

RealGDPAnnual

GrowthRate(%)

NominalGDP(US$)

FDI(US$billion)


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8

Alternaty Vietnam Hotels + Resorts Newsletteralternaty.com

AUGUST 2013 Industry Conferences and Events

Industry Conferencesand Events

Asia Pacic Hotels Investment ConferenceAlternaty was invited to participate in the

fth annual Asia Pacic Hotel Investment

Conference (APHIC), organised by Questex

Hospitality Group, which was held on 15th

and 16th May, 2013. The annual confer-

ence forms part of the International Hotel

Investment Conference (IHIF) Summit. The

two day event was held at the Dusit Thani

in Bangkok and attracted almost 300 of the

leading hotel owners, investors, operators

and developers in the region.

Rudolf Hever, Executive Director chaired

one of the featured panel discussions

entitled, Condo Hotel, Villas and Branded

Residences How Best to Accelerate Return

of Capital? and Mauro Gasparotti, Execu-

tive Director, was a panellist in the session

Navigating into the future: Vietnam.

In a live poll conducted during the confer-

ence, attendees were asked in which coun-

try they would next invest and Thailand wasvoted number one, followed by Cambodia,

Myanmar, Indonesia, Vietnam and the

Philippines.

Stuart Lloyd, Acting Publisher, Travel

Daily Media (right) chairing the session

Navigating into the future: Vietnam

with panellists to his right Rick Mayo-

Smith, Managing Director, Indochina

Fund Management; Mauro Gaspar-

otti, Executive Director, Alternaty;

Craig Douglas, Director, Hospitality,

VinaCapital and Bernhard Bohnenberg-

er, President, Six Senses Hotels, Resorts

& Spas (left).

Rudolf Hever (right) chairing the panel

discussion Condo Hotel, Villas and

Branded Residences How Best to

Accelerate Return of Capital? with

panellists to his right Paul Dean,

Principal, Dean & Associates; Yuthachai

Charnachitta, President and CEO,

Italthai Group; Nevius Glussi, Corporate

Director of Development, New World

Hospitality and Andrew Halturin,

previously Project Director and Member

of Board, Koh Puos (Cambodia) Invest-

ment Group (left).

HOFTEL Asia Conference

M eet the Alternaty team inHong Kong on 15th and 16thOctober 2013 at the next AOCAP

conference (Alternative Ownership

Conference Asia Pacific) entitled

Building the Platform for Growth.

Rudolf Hever will share his views

on the Vietnam Tourism market

at the session entitled RegionalRound Up Industry Perspectives

from Asia-Pacific.

HOFTEL is an in-

ternational associ-

ation representing

the interests of

hotel owners, real

estate investors

and hospitality

franchisees. The

associations mem-

bers collectively own approximately US$45

billion worth of hotel property worldwide.

The association holds regular conferences

around the globe for its members with the

latest conference having been held at the

Hyatt Regency in Danang on 27th and 28thof June, 2013. The event attracted attend-

ees from Hong Kong, Thailand, Germany,

Singapore, Indonesia and Vietnam.

Alternaty was asked to present to the

members a detailed update on the Vietnam

Hotel Market, which was conducted by

Mauro Gasparotti, Executive Director. Seeour blog at blog.alternaty.com to download

the full presentation, or click on the image

to directly download the presentation.
http://blog.alternaty.com/http://blog.alternaty.com/155-vietnam-hotel-market-overview-2013http://blog.alternaty.com/


9/10

9 Alternaty Updates


AUGUST 2013

AlternatyUpdates

Common Mistakes inHotel Planning and Operation

Alternaty is pleased to launch the rst issue

of a multi part series entitled Common

Mistakes in Hotel Planning and Operation.

The series aims to highlight the most com-

mon mistakes made by hotel developers

and oers advice on how to avoid them.

This rst issue, Common Mistakes in Hotel

Design, highlights the most common mis-

takes made during the design process that

can have long lasting negative impacts on

operations. See our blog at

to download the full presentation, orclick on the image to directly download the

presentation.

Alternaty Blog

Alternatys very own blog has just been

launched! Keep abreast of the newest

industry trends, must-read articles in the

region and Alternatys latest releases. Checkit out and dont forget to

participate in the conversation by posting

your comments.

Connect with Us: AlternatySocial Media ChannelsWe have been hard at work updating our various social media channels. Subscribe to any of

our channels to receive our latest updates.

Hotel Operations Review

No matter how large or small the room

inventory of a property may be, all hotels

and resorts must have in place standard

operating procedures to ensure that the

expected level of services are delivered on a

consistent basis. Unfortunately, all too often

this is not the case, especially in non-brand-

ed properties. Owner managers often fall

into the trap of thinking that allowing some

exibility in service standards is a wise wayto cut costs, but of course this is not the

case. Instead, a lack of standardised oper-

ating procedures often leads to dissatised

guests, frustrated sta, operational ine-

ciencies and a shrinking bottom line for the

owner.

Alternatys latest service oering, a Hotel

Operations Review, is a thorough assess-

ment of a hotel/resorts operations, starting

from obtaining an independent and objec-

tive perspective of operation, all the waydown to implementation of new, fresh and

eective operational procedures.

The Alternaty 4-step Process for Hotel

Operations Review

1 Thorough physical inspection ofhotel and resort and high level due

diligence of operation.

2 Full operational review of eachdepartment.

3 Implementation of Standard Op-eration Procedures (SOP) tailored

specically for the property.

4 Monthly supervision.

TWITTER FACEBOOK LINKEDIN

SLIDESHARE GOOGLE+YOUTUBE
http://blog.alternaty.com/https://plus.google.com/101190825345531924579http://www.slideshare.net/Alternayhttp://www.youtube.com/AlternatyREhttp://www.linkedin.com/company/alternatyhttps://www.facebook.com/Alternatyhttps://twitter.com/AlternatyREhttp://blog.alternaty.com/160-common-mistakes-in-hotel-designhttp://blog.alternaty.com/http://blog.alternaty.com/http://blog.alternaty.com/


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Alternaty Vietnam Hotels + Resorts Newsletter

AUGUST 2013 Investment Opportunities // About Us

+84 933 902 [email protected]

Rudolf Hever

EXECUTIVE DIRECTOR

TE


TE

Mauro Gasparotti

EXECUTIVE DIRECTOR

Please dont hesitate to contact us to discuss any of the contents in this newsletter or for more

information on any of the opportunities above. We welcome your comments and suggestions

for the next edition. In the meantime, dont forget to follow us on Twitter, LinkedIn or Face-

book to receive the latest updates and opportunities as they become available.


TE

Nhung Pham

EXECUTIVE ASSISTANT

Hot Properties See our website for more Hot Properties & EnquiriesLocationMui Ne

StatusOperating resort with adjacent

cleared development site

Scale50 - 100 room resort on approxi-

mately 2 ha of land and approximately 1 ha

adjoining development site

DescriptionExisting upscale resort with a

mix of studios, bungalows and an oversized

restaurant with extra wide frontage to main

road. Adjoining site suitable to develop an

additional 100 - 250 keys or apartments/

villas for sale.

Investment Options100% equity stake of

foreign owned entity, separate purchase of

resort or development site and JV partner-

ship with developer. The resort is currently

self managed therefore option to rebrand is

available.

ABOUT US

Alternaty Vietnam Hotels + Resorts Newsletter, published by Alternative Real Estate Service Co., Ltd. (hereafter Alternaty), is a news-

letter containing information about the hotel and resort market in Vietnam and Indochina region. It is provided for general information

purposes only. Whilst making all reasonable eort to provide correct information, no legal responsibility can be accepted by Alternaty for

any loss or damage arising out of the use of or reliance on the contents of this newsletter.

DISCLAIMER

Unit 23, 26 Ly Tu Trong Street,

District 1, Ho Chi Minh City,

Vietnam

Tel. +84 836 028 591

www.alternaty.com

Find Us

InvestmentOpportunities

Alternaty is a boutique real estate

firm providing specialist advice

for hotel, resort and second home

projects in Vietnam and the Indo-

china region.

OUR SERVICESInvestment Consulting

Investor Representation

Hotel Operator Selection

Hotel Pre-opening

Hotel Operations Review

Market Research

Feasibility Study

Development Consulting

WE SPECIALISE INVilla Management

Alternative Ownership

Rental Pool Structuring

Fractional Ownership

Branded Residences

Download our latest Capability

Statement from our website.

LocationDistrict 3, HCMC

StatusCleared development site on one

of the main arterial roads connecting the

airport with the CBD.

ScaleApproximately 4,000 sm

DescriptionA high plot ratio of 12 sucient

for a 28 storey 48,000 sm GFA mixed-use

complex with twin towers & a retail podium.

Investment OptionsOutright purchase or

option to partner with a strong and reliable

local partner with proven track record with

several projects successful delivered.

LocationHoi An Beach

StatusCleared and compensated site with

approved investment license

Scale4 ha with 200 m beachfrontDescription200 key resort / 150 residences


Singaporean entity

LocationDanang


approved investment license for a mix of

hotel, commercial and hotel school.

Scale6 ha

DescriptionOption to purchase a single site

or whole development project.

Investment OptionsJV partnership with

local land owner

LocationDistrict 3, HCMC

StatusOperating upscale hotel

Scale200 - 300 room upscale hotel

DescriptionThe hotel is currently self

managed therefore option to rebrand is

available.

Investment OptionsOutright purchase or

JV with local partnerSingaporean entity

LocationMy Son, Quang Nam Province


approved investment license

Scale10 ha with 120 key resort and 100

residences

DescriptionHot springs project with 2

drilled 60 .7 C hot water wells


Singaporean entity
http://www.alternaty.com/http://www.alternaty.com/

alternaty hotels + resort newsletter danang august 2013

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