Ho Chi Minh City-based Vina Properties Development Group was reported to have just taken over Novotel Phan Thiet Ocean Dunes & Golf Resort in Binh Thuan province’s Phan Thiet City.
A company representative declined to confirm the news with VIR, as negotiations were still underway.
However, a local newspaper said that the acquisition was completed a few days ago and the new owner has changed the hotel’s name to DuParc Phan Thiet Ocean Dunes & Golf Resort.
This project was initially partly invested by Indochina Capital Investment Fund. Apart from an 18-hole golf course, the project features a four-star hotel with 123 rooms operated by Accor.
Earlier, Vina Properties acquired the stakes of Hong Kong’s Kovina Investments and Singapore’s AOI Saigon in Amara Saigon Hotel in Ho Chi Minh City’s District 3. The 280-room hotel was then renamed Ramana Saigon Hotel.
In 2010, the group expanded its investment portfolio in the hospitality industry by taking over Dalat Palace Luxury Hotel & Golf Club and DuParc Hotel Dalat in Dalat City.
One of the most prominent deals recently is Hanel’s taking over 70 per cent stakes in Hanoi-Daeha Business Centre from the Korea chaebol Daewoo E&C in June this year.
The was great surprise a local partner had outplayed another Korean cheabol Lotte to win this deal.
Other outstanding cases were the domestic BRG Group buying Hilton Hanoi Opera– one of the most famous five-star hotels in Hanoi, Sovico Holding purchasing Furama Resort from a Hong Kong group Lai Sun, or Thien Minh Tourism Company buying a chain of resorts and hotels named Victoria.
It is seen as more effective if domestic investors buy out operating hotels, compared with pouring in capital from the initial investment as investors can get an immediate benefit straight after the deal is completed.
Also, there are few land plots in Hanoi and Ho Chi Minh City to develop hotels in prime locations. By acquiring high-end hotels from foreign investors, domestic investors can obtain valuable assets and global branding.
Most upmarket hotels in the past were developed by foreign investors, but local developers have been dominating hotel and resort market in recent years.