Da Nang Has Room for Increased Presence of Int’l Hotel Operators: Savills

Tuan Minh

10:06 16/09/2016

BizLIVE - As the tourist capital of central Vietnam, Da Nang has plenty room for more international hotel operators, according to Savills.

Da Nang Has Room for Increased Presence of Int’l Hotel Operators: Savills

Da Nang's real estate market is attractive to domestic and foreign investors. Photo: danang.vn

Da Nang offers plenty room for international hotel operators to increase their presence as the city has seen a boom in the tourism industry, according to a report by real estate service firm Savills Vietnam.
Da Nang is one of the twenty “cleanest cities” in the world and the “most livable city” in Viet Nam. Offering plenty of beautiful natural and cultural destinations, Da Nang is the tourist capital of central Vietnam, says the report.
Total visitor volume in the city soared 28% year-on-year in the first half of 2016 and domestic visitors were up 4% year-on-year.
In 2015, the city housed 73 three-to-five-star hotels with 7,485 rooms, of which seven of the eleven five-star hotels and four of the 14 four-star hotels were managed by international operators. Accor Hotels and Resorts Group is the largest international operator in Da Nang, managing 944 rooms.
Major upcoming hospitality projects include Crowne Plaza Phase 2, Hilton Danang Hotel, and Four Points by Sheraton. The $4-billion Hoi An South casino resort, expected to be put into partial operation by 2019, will create a huge push for the formation of hospitality strip from Da Nang to Hoi An.
Da Nang has pioneered luxury coastal homes and is second, behind Nha Trang, in total stock with 1,199 villas and 3,367 apartments. A large future supply of apartments and coastal villas is in the pipeline.  
Surveys have shown that more than 80% of purchasers are from Hanoi, attracted by wide a variety of products, completed infrastructure, bright tourism prospects and sales policies, and the image of a young, dynamic and green city.
Successful cases include Ba Na Hill, Ocean Villas, Hyatt Regency, Furama, Intercontinental, and Azura. Large-scale upcoming projects include Soleil Da Nang, Coco Bay, Da Phuoc, Han Riverside, Ariyana, Central Coast, Vinpearl Han River, and Ocean Suites & Estates.
Regarding the retail market, Da Nang’s modern retail density is 0.15 square meter/person, similar to other Vietnamese cities but substantially lower then regional peers such as Jakarta, Kuala Lumpur and Bangkok.
“There is room for further growth over the long-term as Da Nang continues to evolve,” say Savills researchers.
The city's retail market recorded the best performance in 2015 when occupancy was 88%, 18 percentage points (ppts) higher than in 2014 and 10% ppts higher than 2011. Average rent reached $22/m2/month, increasing 29% year-on-year and unchanged versus 2010.