Wednesday, April 17, 2013

Asian tycoons conquer Vietnamese high end hotel market - News VietNamNet

Asian tycoons conquer Vietnamese high end hotel market - News VietNamNet

VietNamNet Bridge – The luxury hotel market segment remains scorching hot amid the frozen real estate market.

Vietnam, Daewoo hotel, Asian investors, real estate market, investment capital

In the past, the luxury 5-star hotel market was believed to be the “domain” for western investors, including the big names like Marriott International Hotel, Accor, Starwood Hotels & Resorts. However, things are quite different now: more and more South Korean and Japanese have turned up in the market.

After the unsuccessful efforts to buy Daewoo hotel, the South Korean group Lotte has bought Legend Hotel, a high end hotel in the sea city of Da Nang in the central region, while it is building a 65-storey hotel – Hanoi City Complex, capitalized at $400 million, just next to Daewoo hotel.

If Lotte had succeeded with the deal of buying Daewoo Hotel in 2012, it would have had two adjacent hotels in the golden land area in Ba Dinh district in the capital city.

At that time, when a lot of foreign investors had to narrow their portfolio investments in Vietnam, Lotte stated it was ready to spend more than $100 million to buy stakes from Daewoo group, which was double the sum of money Hanel, the Vietnamese partner in the Daewoo hotel joint venture, paid initially. 

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