Intercontinental Asiana Saigon Hotel. Photo: whereisfatboy.blogspot.com
Vietnam was ranked fourth in Asia-Pacific in terms of hotel investment volumes in the first half of this year, according to a report by real estate consultancy firm Jones Lang LaSalle (JLL).
Transactions in in the six-month period totaled $237.6 million, the third largest volume after that in Japan, Australia and mainland China. It came before transaction volumes in Taiwan and Thailand.
A deal worth $74.9 million for InterContinental Asiana Saigon in the heart of Ho Chi Minh City
, where U.S. President Barack Obama
stayed during his May visit, was among the top 10 single asset transactions in the period.
Singapore’s Mapletree Investments acquired the hotel from Kumho Industrial Company and Asiana Airlines.
The biggest singles assets in Asia Pacific in H1. Source: JLL, Real Capital Analytics.
According to the report, hotel investment volumes in the region increased 13.2% year-on-year to $3.8 billion in the six-month period as yields recovered to pre-global financial crisis levels.
Whilst the investment environment is expected to be dominated by Japan for the remainder of 2016, deal flow should remain robust supported by stronger buying activity in Thailand, Vietnam, Korea and Myanmar, said Mike Batchelor, Managing Director for JLL’s Hotels & Hospitality Group Asia Pacific.
Demand for accommodation in Vietnam is expected to remain robust amid rising foreign tourist arrivals in the country.
Vietnam welcomed 5.55 million overseas visitors in the first seven months of this year, representing a 24% increase from a year earlier, according to government statistics. Up to 8.5 million vacationers are expected to come to Vietnam this year, rising 7% year-on-year.