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

Military helicopter crash kills four crew members Military helicopter crash kills four crew members

Four crew members were killed when a Viet Nam Air Force UH-1 helicopter crashed during a training exercise yesterday morning.

VN committed to realising TPP VN committed to realising TPP

Deputy Prime Minister Vu Van Ninh reiterated Viet Nam's commitment to negotiating and realising the terms of the Trans-Pacific Partnership (TPP) for the benefit of all TPP members while meeting US Under Secretary of Commerce for International Trade Stefan M. Selig yesterday in Ha Noi.

Talented ‘stage magician' tells story in memoir Talented ‘stage magician' tells story in memoir

Artist Thanh Loc will begin his five-city tour tomorrow in HCM City to launch his newly published memoirs.

Viet Nam sit at 137th in world football rankings Viet Nam sit at 137th in world football rankings

Viet Nam jumped up four steps in international football rankings, according to FIFA's latest list.

Ministry to tighten control over wild Ministry to tighten control over wild

The Ministry of Agriculture and Rural Development has urged relevant ministries and agencies to tighten management over centres that raise dangerous wild animals in order to ensure the safety of local people.