Friday,  Apr 23, 2021,11:27 (GMT+7) 0 0
Local market sees new wave of M&A deals
By Dao Loan
Monday,  Apr 5, 2021,14:11 (GMT+7)

Local market sees new wave of M&A deals

By Dao Loan

A view of a hotel in Vietnam. A new wave of M&A deals has begun in the local hotel market – PHOTO: DAO LOAN

HCMC – Despite the difficulties caused by the coronavirus pandemic, many investors are still opting to invest in the Vietnamese hotel market, spurring a new wave of mergers and acquisitions (M&A).

Some entrepreneurs active in the hotel industry said there was a firm seeking to buy multiple three- to five-star hotels in Vietnam for up to VND7 trillion.

“The firm is a new business, but has much capital and has announced its cooperation with a foreign real estate investment fund,” said an entrepreneur.

Tran Thi Thanh Tam, director of Chez Mimosa Hotel Management and Consulting Company, said that the M&A deals were done in the local market. In fact, many investors have acquired some hotels during the Covid-19 pandemic, mainly ones in provinces and cities with high tourism potential such as Dalat and Phu Quoc.

There have been more requests for finding and purchasing hotels, she said.

“We have received six requests for the purchase of hotels from two groups from Dubai and India and other local investment funds and individuals,” said Tam.

“Data from online hotel room booking channels indicated that some 2,000 small hotels in Vietnam had shut down due to the pandemic,” Tam said, adding that despite multiple difficulties, the hotel market still had potential, urging M&A deals.

A number of domestic and foreign investors are seeking to purchase hotels. Besides, foreign investors want to buy four- or five-star hotels or land lots to develop hotels in Vietnam’s major cities such as Danang, Hanoi and HCMC, said real estate advisor Savills Vietnam.

“The demand from international investors to acquire hotels in Hanoi and HCMC is great,” said Su Ngoc Khuong, investment director at Savills Vietnam.

However, even though foreign investors are eyeing four- or five-star hotels as Vietnam could soon reopen its door to international tourists, hotel owners are still doubtful about selling so soon.

“Many hotels have had to close down for three or four months due to few guests, but hotel owners did not sell their properties as they are expecting property prices to surge once the hotel market resumes,” Khuong said.

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