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Toyoko Inn president Nishida Norimasa said the group wished to open the hotels in Vietnam, including both newly constructed hotels and upgrades of existing facilities.
“I do believe that our plan to develop 100 three-star hotels in Vietnam would be successful based on the steady economic development of Vietnam and in the long term the country will be more developed,” said Norimasa.
According to this ambitious plan, the Toyoko Inn will act as the hotel operator and sublease domestic developer-backed operating hotels to manage, and pour about 20 per cent of total investment capital to build new hotel projects.
Tran Nhu Trung, Savills Vietnam associate research director, told VIR that Toyoko Inn’s plan would bring many investment opportunities for domestic developers as the corporation commits to support investment capital to build new hotel projects.
According to Trung, in the tough economic climate, hotel developers were striving to attract visitors to high-class hotels that have four- and five-star ratings.
“If Toyoko Inn invests in high-class hotels, the plan will be indeed precarious. If the group invests in three-star hotels, the plan would be economically efficient as visitors have a tendency to cut unnecessary expenditure due to tight budgets and the three-star hotels will be the first choice,” said Trung.
Toyoko Inn also plans to upgrade existing hotels and then sublease these hotel projects within 20 to 30 years and pay a fixed monthly rental.
Under the Toyoko Inn’s proposal, it will invest in big cities, where the population reached over 100,000 people, and be located near transport stations and airports.
During the first three to five years, the group will open 10 to 20 three-star hotels that have 10 to 12 floors with a footprint of 1,500 to 3,000 square metres. Toyoko Inn will take on the design for these hotel projects.
Trung said that Toyoko Inn’s ambition to run chain of three-star hotels in Vietnam was a feasible plan with long term vision. “The dream of 100, three-star hotels is very welcomed,” he said.
Founded in 1986 in Japan, Toyoko owns the biggest chain of three-star hotels in Japan with more than 240 in all. Toyoko Inn invested to open chain of three-star hotels in many Asia countries such as Korea, China, Cambodia and Laos.
Japan now ranks third among 84 countries and territories investing in Vietnam in terms of registered capital and first in terms of the amount of disbursed capital.