Vietnam faces hotel sell-off with 40% discounts amid tourism collapse

Closed hotels in Hanoi

Vietnam is currently experiencing a sell-off of hotels in large numbers across Vietnam as owners suffer big losses caused by the lack of customers amid the latest wave of Covid-19 infections in the country, VN Express wrote in a recent report.

Hundreds of hotels are listed for sale on popular real estate listing websites, many of them in former tourist hotspots such as Ha Long, Nha Trang, Da Nang, Ho Chi Minh City, Hanoi and other locations as the pandemic continues to severely disrupt the hospitality industry.

How serious the situation is describes the average hotel occupancy in the country’s largest city and prime gateway, Ho Chi Minh City, which in the first six months was just 18 per cent, up only five percentage points from the same period in 2020, according to real estate consultancy Savills.

“During the fourth Covid-19 wave in the second quarter, lockdown measures led to shrinking demand, with 17 projects removed from stock in the city,” Savills said in a note.

Prices drop up to 40 per cent

Listings show hotels with 50 to 100 rooms in Ho Chi Minh City’s central District 1 being offered for prices between 150 billion and 800 billion dong ($6.5 million to $34.8 million), with many owners saying they need to sell soon to cut their losses. Industry insiders estimate prices have dropped by up to 40 per cent since 2019.

In Quang Ninh province, home to popular tourist spot Ha Long Bay, official figures show that nearly 13,000 workers in the hospitality industry are directly affected by the pandemic with hotels only recording occupancy of between five and seven per cent.

Owners financially exhausted

Many owners say they are overwhelmed by debt and had to let go their staff as the continued lockdowns are exhausting them financially. Phan Xuan Can, chairman of real estate consultancy Sohovietnam, said around 90 per cent of buyers of hotels priced at below 100 billion dong are Vietnamese who seek to profit from a quick recovery of the industry once the majority of the population is vaccinated.



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Closed hotels in Hanoi Vietnam is currently experiencing a sell-off of hotels in large numbers across Vietnam as owners suffer big losses caused by the lack of customers amid the latest wave of Covid-19 infections in the country, VN Express wrote in a recent report. Hundreds of hotels are listed for sale on popular real estate listing websites, many of them in former tourist hotspots such as Ha Long, Nha Trang, Da Nang, Ho Chi Minh City, Hanoi and other locations as the pandemic continues to severely disrupt the hospitality industry. How serious the situation is describes the average hotel...

Closed hotels in Hanoi

Vietnam is currently experiencing a sell-off of hotels in large numbers across Vietnam as owners suffer big losses caused by the lack of customers amid the latest wave of Covid-19 infections in the country, VN Express wrote in a recent report.

Hundreds of hotels are listed for sale on popular real estate listing websites, many of them in former tourist hotspots such as Ha Long, Nha Trang, Da Nang, Ho Chi Minh City, Hanoi and other locations as the pandemic continues to severely disrupt the hospitality industry.

How serious the situation is describes the average hotel occupancy in the country’s largest city and prime gateway, Ho Chi Minh City, which in the first six months was just 18 per cent, up only five percentage points from the same period in 2020, according to real estate consultancy Savills.

“During the fourth Covid-19 wave in the second quarter, lockdown measures led to shrinking demand, with 17 projects removed from stock in the city,” Savills said in a note.

Prices drop up to 40 per cent

Listings show hotels with 50 to 100 rooms in Ho Chi Minh City’s central District 1 being offered for prices between 150 billion and 800 billion dong ($6.5 million to $34.8 million), with many owners saying they need to sell soon to cut their losses. Industry insiders estimate prices have dropped by up to 40 per cent since 2019.

In Quang Ninh province, home to popular tourist spot Ha Long Bay, official figures show that nearly 13,000 workers in the hospitality industry are directly affected by the pandemic with hotels only recording occupancy of between five and seven per cent.

Owners financially exhausted

Many owners say they are overwhelmed by debt and had to let go their staff as the continued lockdowns are exhausting them financially. Phan Xuan Can, chairman of real estate consultancy Sohovietnam, said around 90 per cent of buyers of hotels priced at below 100 billion dong are Vietnamese who seek to profit from a quick recovery of the industry once the majority of the population is vaccinated.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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