VinaCapial, Warburg Pincus Venture into $300 Million Hotel Deal

Tuan Minh

15:42 18/11/2016

BizLIVE - Vietnam-based VinaCapital and Warburg Pincus have teamed up to invest $300 million in a hospitality joint venture that will span Southeast Asia.

VinaCapial, Warburg Pincus Venture into $300 Million Hotel Deal

A stunning beach in Nha Trang, central Vietnam. Photo: Internet

Ho Chi Minh City-based asset management company VinaCapital and U.S.-based Warburg Pincus LLC have agreed to form a hospitality joint venture (JV) to invest in leading markets in Southeast Asia.
The JV will span development, acquisitions and operations of hotel in the region, where tourist arrivals are expected to more than triple over the next decade, especially from China, the firms said in a joint statement on November 17.
The two firms have committed to put together $300 million in the JV while other assets, including a 100% stake of Serenity Holding as well as select resort and city hotels in Vietnam, will be contributed.
Serenity, previously co-owned by Don Lam – VinaCapital’s CEO – and Marco van Aggele, is a domestic hotel management company focusing on developing and operating specialized boutique resorts and upscale city hotels in Vietnam.
“The JV seeks to aggressively grow its asset base through acquiring, repositioning and enhancing well-located city hotels in key tier-1 cities and developing luxury resorts in leading resort destinations across Southeast Asia,” says the statement.
The new platform also plans to acquire and partner with other prominent hotel management companies and further enhance its management capacity and expand its brand and asset coverage, it adds.
Benefiting from the country’s rich tourism resources, the hospitality market in Vietnam and others across the region have been going through an important transition period driven by strong international tourist arrivals, a rapidly growing domestic middle class, pro-growth policies and accelerating infrastructure build-up, according to the statement.
VinaCapital is among the largest cash management firms in Vietnam, with some $1.4 billion worth of assets under management. The firm has made 16 hospitality investments totaling $220 million over the last 10 years.
Global private equity firm Warburg Pincus has is overseeing more than $40 billion in assets. It has invested $300 million in Vincom Retail, the largest shopping mall operator in Vietnam.

TUAN MINH