Updated  
September, 29 2011 11:00:32

Hotel industry has investor potential

HCM CITY — Investment potential in the hotels sector remains great, especially for investors seeking long-term growth, said Robert McIntosh, Managing Director of CBRE Hotels Asia Pacific.

McIntosh made the comment at a seminar on investment strategies held on Tuesday in HCM City. He said the hotel sector had recovered very quickly after the global financial crisis. Growth in revenue per available room is at least 20 per cent higher than levels before the crisis.

Although the country's real estate market has come to a standstill, hotels in Ha Noi and HCM City were still seeing strong growth in recent years. This year, both Ha Noi and HCM City saw room rates rise by at least 5 to 10 per cent against 2010, or a 15 to 20 per cent increase compared to 2009.

CBRE experts said the lower-end of the sector, which consists of cheap hotels, offered some of the greatest investment opportunities for canny investors.

Due to high interest rates on loans in Viet Nam, three-star hotels presented the best opportunity for investors looking for high returns. However, according to experts at CBRE Viet Nam, cheap hotels needed to increase their business efficiency.

Also at the seminar, experts from CBRE analysed various investment options in the hotel industry, including developing Real Estate Investment Trusts (REITs) and determining the importance of management and consultation companies during construction of hotel projects. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Mekong summit calls for greater riparian co-operation Mekong summit calls for greater riparian co-operation

Mekong River riparian countries have improved co-operation since the first Mekong River Commission (MRC) summit held in Thailand four years ago, a senior Vietnamese official has said.

Viet Nam attempts to hold back deadly measles strain Viet Nam attempts to hold back deadly measles strain

The head of Viet Nam's General Department of Preventive Medicine, Tran Dac Phu, announced on Tuesday that the department would work to contain the outbreak of measles over the coming months.

Da Nang plans a greener future Da Nang plans a greener future

The central city of Da Nang will have a face-lift as it becomes a green city following the Prime Minister's decision on the city's adjusted master urban plan for 2030 and 2050.

Delta households face water shortage Delta households face water shortage

More than 377,000 people in the Cuu Long (Mekong) Delta face a fresh water shortage because of saline water intrusion in the area, according to the National Centre for Rural Clean Water Supply and Environmental Sanitation.

Ha Noi to host National Shooting Cup 1    Ha Noi to host National Shooting Cup

The National Shooting Cup is scheduled to take place in the Ha Noi-based National Sports Training Centre from April 16 to 24.