Alternaty - Phu Quoc hotels and resorts market view - September 2012

Phu Quoc Hotel Market Overview

Vietnam Hotels + Resorts Newsletter

Table of ContentsPhu Quoc Hotel Market OverviewVietnam Economics Update News UpdateFeature Article: Franchise AgreementsInvestment OpportunitiesAbout Us

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September 2012

The island of Phu Quoc lies off the south- western coast of Vietnam 40 km west of Ha Tien on the Vietnam mainland and just 12 km from the coast of Cambodia. The Island’s population is only 85,000 while its size being 50 km north to south and 25 km east to west makes it the largest island in the Gulf of Thailand with an area of 574 km2.

Location – An investor’s dream

Together with numerous smaller islets it belongs to the District of Phu Quoc, of Kien Giang Province which forms part of the mainland. The Island is administratively divided into 2 towns and 8 communes. The largest town and district seat is Duong Dong Town which is located on the west coast.

More than half of the island is covered by forest. With up to 12 km of pristine beaches and a variety of cultural and historic attrac-tions, it is one of the most visited tourist destinations in Vietnam. The island remains relatively undeveloped with the first modern hotel development, Tropicana Resort, only appearing in 1995.

In deciding on the location to feature for this first newsletter edition, we could not have picked a more underrated investment destination in Vietnam – one with stunning beaches, a strategic location within SE Asia, virgin landscapes, improving infrastructure and a limited number of hotels and resorts, which incidentally are outperforming other destinations in Vietnam.

But why has there been a dearth of con-struction activity? What went wrong in the past and what may the future bring for the island of Phu Quoc? — Alternaty Opinion

Phu Quoc has an ideal geo-

graphical location being a

stone’s throw away from Cambo-

dia, sailing distance to the islands

of Thailand and a short flight from

major population centers such

as Kuala Lumpur, Singapore and

Jakarta. It has the potential to be

a connection hub for travelers and

offers repeat visitors to Thailand a

fresh alternative to Phuket.

2 Phu Quoc Hotel Market Overview

Alternaty® Vietnam Hotels + Resorts Newsletter alternaty.com

The main point of access to Phu Quoc is Duong Dong Airport which is only able to cater for small planes. Vietnam Airlines uses the 68 seat ATR Turboprop and provides 68 flights per week from HCMC as well as 1 flight per day from Rach Gia and Can Tho. Air Mekong uses much newer Bombardier CRJ 900 jets with a capacity of 90 seats and provides 18 flights from HCMC and 9 flights from Hanoi per week as well as some flights from other provinces. Flights from HCMC start from US$50 one way and it takes 1 hour to cover the 300 km distance.

Access – A traveler’s nightmare

Supply – Limited & only small scale offerings

Largest Hotels in Phu QuocFigure 1

Source: Alternaty

Phu Quoc has approximately 60 hotels or 1,500 rooms with the majority being family run mini hotels and guest houses. Most of the current stock was developed by state owned enterprises, with some exceptions being La Veranda, Chen La and Long Beach which were developed under a JV structure with a foreign majority partner. The only two properties managed by international hotel operators are La Veranda managed by Accor under their MGallery brand and Chen Sea managed by Centara as part of their Boutique Collection.

The Vietnam National Administration of Tourism is the government body having the authority to issue hotel star gradings. There are no properties on the island that

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f Roo

ms

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20

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60

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Airlines Providing Services to Phu QuocTable 1

Departure

Hanoi

Buon Me Thuot

Quy Nhon

Vinh

HCMC

HCMC

Rach Gia

Can Tho

Airline

Air Mekong

Air Mekong

Air Mekong

Air Mekong

Air Mekong

Vietnam Airlines

Vietnam Airlines

Vietnam Airlines

Source: Alternaty

Flights / Week

9

4

4

2

18

63

7

7

Capacity

90

90

90

90

90

68

68

68

In total, there are approximately 115 flights per week to Phu Quoc which translates to a maximum capacity of 8,500 passengers per week, or 625,000 per annum. The new airport is scheduled to be completed by the end of this year which is expected to boost capacity dramatically by allowing much bigger jets to land.

Phu Quoc can also be reached by ferry with regular services from Rach Gia and Ha Tien.

have been awarded 5 stars by VNAT, Saigon Phu Quoc Resort is the only one with 4 stars, La Veranda is the only 3 star resort while another 36 properties have been awarded less than 3 stars. These star gradings do not necessarily reflect the operating perfor-mance nor the true quality of the hotels.

A further constraint of the Phu Quoc market is that there is a lack of properties with suffi-cient scale and facilities to accommodate the MICE sector. Saigon Phu Quoc resort offers the largest number of rooms at 100 rooms while most of the remaining hotels have between 40 to 70 rooms.

— Alternaty Opinion

A nother major access constraint is that there is only a very

limited window during the day when flights can land and depart from the airport on the island. This means that the last flight to leave HCMC on a Friday is just after 1pm and the latest return flight on Sun-day is 3pm. This makes it difficult to justify a weekend trip to enjoy only 1 full day.

© 2012 Google

Phu QuocKien Giang Province

3Phu Quoc Hotel Market Overview

Alternaty® Vietnam Hotels + Resorts Newsletteralternaty.com

September 2012

The La Veranda is undergoing an extension adding 27 new rooms to increase the total number of rooms to 70.

A number of large scale resorts are expect-ed to come online over the next 3 years with international operators already in place. These include a Holiday Inn, Crowne Plaza and Novotel. Other brands that have been involved in negotiations include Ritz Carlton and Hyatt Regency.

However, to date there has been limited construction activity and it is difficult to anticipate oversupply of any kind. Looking further ahead, there are several multi-resort developments that are in planning stages.

Demand – Tourist arrivals dwarfed by regional peers

0

1

2

3

4

5

Arr

ival

s (m

illio

n)

Tourist Arrivals to Kien Giang Figure 2

Domestic Arrival

International Arrival

Source: Kien Giang Department of Culture, Sports and Tourism

Total tourist arrivals to Kien Giang Province peaked in 2010 with 4.4 million arrivals of which 4.2 million were domestic arrivals and 121,000 were foreign arrivals.

In 2011, even though foreign arrivals increased to 144,000, domestic arrivals decreased by 23% causing total arrivals to fall by 22%. This could be attributable to the highly unsteady local economy during 2011, which would have caused vacation plans to be put on hold. The first 6 months of 2012 has seen a significant rebound in tourist arrivals with 85,000 international (up 33% compared to the same period in 2010) and 2.5 million domestic arrivals recorded thus far. If this pace of arrivals continues it looks likely that total tourist arrivals in 2012 will

surpass the peak set in 2010 as well as the government target for 2012 of 5.3 million arrivals in total including 160,000 foreign arrivals.

Of the limited data available specifically for Phu Quoc, released figures include 243,000 total arrivals for the first half of 2012, up 39% from the same period in 2011 while interna-tional arrivals increased by 20.4% to 69,000 during the same period. To add some per-spective to these figures, during the same period, foreign arrivals were almost 3 million in Bali and just above 2 million in Phuket.

Where are the five star hotels? The extreme difficulty of real estate development in Phu Quoc is what has

held it back and at the same time has been its salvation. The arduous and drawn out land compensation and approval processes has meant that out of the 229 planned projects submitted to the local authorities only 9 have been put into operation. Phu Quoc may have missed out on the last development boom, how-ever this means that it is free of the oversupply headaches that currently plague other markets and sectors in Vietnam.

Hotel Brands Expected To Debut In Phu QuocTable 2

Source: Alternaty

Developer Operator Brand Location Scale

BIM Group

Esaco/Long Beach

Esaco/Long Beach

Tran Thai

Ninh Van Bay

IHG

IHG

Accor

Fusion

Six Senses

Crowne Plaza Duong Dong

Holiday Inn Bai Sao

Novotel Duong Dong

Maia Ganh Gio

Latitude Cua Duong

400 keys

250 keys

210 keys

300 keys

136 keys




September 2012

Seasonality – Warm all year but wet and windy monsoon season

The island has a monsoonal sub-equatorial climate enjoying a fairly steady average temperature throughout the year with a peak of 33 °C in April and an annual average of 27.7 °C.

Average rainfall is 190 mm per month with the driest months being November through to March with just 43 mm of rainfall per month. The monsoon lasts from July to October when 360 mm of rainfall can be expected per month. Humidity is also fairly steady ranging from 75% during the dry season and 85% during the wet season.

High season in Phu Quoc is from November to March, with December and the first half of January being the peak period. This period

coincides with the best weather (driest months) as well as the holiday season for western tourists looking to escape the cold winter. There is also a 2 week peak period during the lunar new year. During high season it is essential to book stays well in ad-vance as many properties are fully booked.

Low season is from May to October, with the slowest months being June and July. Western travellers tend to choose destina-tions such as Nha Trang and Da Nang on Vietnam’s central coast during these months as the weather is much better there during these months, especially during June and July when the monsoon begins in Phu Quoc.

Hotel Performance – Among the best in Vietnam

Due to the limited supply of rooms and the growing demand from local and interna-tional travellers, hotels and resorts in Phu Quoc have historically delivered a solid performance compared to other locations in Vietnam. In the upscale market the average room rates (ADR) in 2011/12 ranged from $85 per night for the more dated prod-ucts and up to $165 per night for the well established boutique properties, which is a considerable increase over the past 2 years when the numbers of flights were more limited.

The seasonality of the island remains the main dampener to average room rates. From June to October, competition from other beach destinations such as Da Nang and Nha Trang, with better weather con-ditions, force Phu Quoc resorts to reduce rates in order to attract the price sensitive local market. Rates can vary as much as 60% from the low to the high season, making Phu Quoc room rates among the most volatile in Vietnam.

The mid and economy tier of the market, which are typically smaller sized properties, achieve a more stable ADR of $20 - $40 per night for the family run hotels and up to $65 per night for the larger and more sophis-ticated mid scale properties which offer a wider selection of room types as well as restaurant, swimming pool and spa facilities.

Average occupancy in Phu Quoc is among the highest in Vietnam with properties achieving an average of 75% - 85%, sup-ported by a mix of international and local demand, spread throughout the dry and monsoon season. Even properties that are favoured by international clients are able to deliver a remarkable level of average annual occupancy ranging from 65% - 78%, depending on the size of the property and their price strategy with local travel agents. Overall, the Phu Quoc hotel market enjoys relatively high occupancy compared to other destinations as supply is constrained and properties are small which makes them easier to fill.

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27

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100

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300

400

500

Tem

pera

ture

(°C

)

Rai

nfal

l (m

m)

Rainfall & Average TemperatureFigure 3

Rainfall

Average Temperature

Source: Kien Giang Department of Culture, Sports and Tourism

Seasonlity of Room Rates of Mid to Upscale Resorts

Figure 5

Source: Alternaty

Figure 4

International Management

Local Management

Average Room Rates of Upscale Resorts in Phu Quoc

60

70

80

90

100

110

120

21/110211/0102

Ave

rage

Roo

m R

ate

(US

$/ni

ght)

Source: Alternaty

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Var

iatio

n in

Roo

m R

ate

5Phu Quoc Hotel Market Overview


September 2012

Although Phu Quoc hoteliers enjoy relatively strong revenue, this is considerably offset by the high operating costs, which are signifi-cantly higher compared to properties on the mainland.

The difficulty of attracting skilled workers to the island and the competition between the resorts for trained staff puts upward pressure on labour costs.

Operating Costs – Phu Quoc’s Achilles heel

Furthermore, the F&B profit margin is eroded by the cost of shipping stock from the mainland or abroad causing some of the international properties to struggle to deliver an F&B profit margin that is higher than 20 - 25%. Another major cost is electricity which can amount to 12% - 14% of total revenue, incentivising developers to search for alter-native energy solutions.

Developers need to also factor in construc-tion costs which are 15% - 20% higher com-pared to developing an identical property on the mainland.

0%

2%

4%

6%

8%

10%

12%

14%

Vietnam

Ene

rgy

cost

as

a pe

rcen

tage

of r

even

ue

Phu Quoc

Energy CostFigure 6

Source: Alternaty


Surprisingly, La Veranda (managed by Accor) and Chen Sea (managed by Centara), both boutique resorts featuring 43 and 36 keys respectively, are among the best performing properties in Vietnam in terms of RevPAR (Revenue per Available

Room), outperforming some well known, larger resorts in Da Nang, Hoi An and Nha Trang. This is mainly due to the high level of average occupancy and limited direct competition.



September 2012

Final Thoughts

The jury is still out on whether Phu Quoc is “the next big thing”. It has certainly been touted as the next Phuket or Bali for several years, especially by local stakeholders, but during this time there has been a lot more hype than progress. Activity on the ground certainly gives plenty of voice for the critics.

Many issues stem from land compensation and relocation, as well as the revised island master plan which caused many projects to be in conflict with the new zoning plans. Other problems that need to be resolved are the slow construction progress of the road network and the chronic electricity shortage.

Providing some hope that Phu Quoc is about enter its next development phase is the new airport, built on 800 ha in Duong To at a cost of US$970 million. It is committed to open by the end of 2012 and will be able to handle medium sized planes such as the Airbus A320 or Boeing 767 with a capacity to process 7 million arrivals per annum.

It seems that Phu Quoc does have many of the ingredients required to become a major tourist destination, however, until the day that international tourists are able to arrive on direct flights from abroad, Phu Quoc will only continue remain “the next big thing”.

The undersupply of hotel rooms, absence of second home villa prod-ucts, increasing tourist arrivals and the new airport on the way make a convincing case to invest in Phu Quoc. However, beneath the surface lurks a challenging approval process and unpredictable master planning guidelines which have seen the demise of many projects.

Assuming that the right local partner is found to mitigate the development risks, we believe that opportunity exists to bring to market formats that are yet to appear in Phu Quoc, such as:

A mixed-use beachfront resort with residential villas for sale, managed by a branded operator with a vacation club component.

An upscale destination resort with a holistic eco-tourism concept for yoga fans and detox candidates, aimed at the health tourism sector.

A multi-phase integrated resort catering for the discerning entertainment needs of a family vacation, complete with adults only and kids only zones

Would we at Alternaty invest our money in Phu Quoc?

When it comes to absolute beach frontage, Phu Quoc offers both the cheapest and most expensive options in Vietnam, depend-ing on the location within the Island. Land in Phu Quoc is abundant but the difficult process of securing land and obtaining construction approvals make “ready to build” projects rare as well as costly.

The asking price of beach-front land can be as high as US$150 – US$350 psm for smaller development sites on Duong Dong Beach(Red Zone) and as low as US$30 – US$50 psm for the more isolated locations such as Cua Can Beach and Truong Beach (Green Zone) suited for destination resorts. How-ever, in Vietnam, as is mostly the case in the region, the initial, or public, asking price for land can be considerably higher than the actual transacted price. In the majority of cases, buyers can secure a reasonable discount on the asking price by spending the time and effort during the negotiation process.

A JV partnership with a financially strong and well connected local company or indi-vidual is the surest method for foreign inves-tors to minimise the development timeline. Large multi-phase master planned develop-ments that are searching for investors are still to be found throughout the island. Some of these are private investors looking for JV partners while others are available directly from local authorities.

Land Price – Land is abundant but good deals are rare

© 2012 Google

7Vietnam Economics Update


September 2012

Source: General Statistics Office of Vietnam

VietnamEconomics Update

In the first 8 months of 2012, implemented FDI was US$7.28 billion, only 0.3% short of the figure achieved during the same period in 2011. This has provided stable support for the Dong this year. On the other hand, newly registered capital was US$5.52 billion, equivalent to only 56.5% of the amount registered in 2011. Real estate ranks second in terms of attracting FDI with 8 newly registered projects, with total registered and additional capital of US$1.72 billion or 20.4% of total FDI.

Foreign Direct Investment

Inflation

August CPI came in at 5.04% y-o-y while the m-o-m figure moved back into posi-tive territory at 0.63% after decreasing for the previous two consecutive months. This increase was attributed to the three recent petrol price hikes which amounted to a 12% increase, as well as due to price pressures in

electricity and medical services. The CPI is expected to continue to escalate in Septem-ber as further upward adjustments of the gasoline price are expected and inflation typically begins to escalate in the period from August until the Lunar New Year.

Trade Balance

The trade balance swung back into deficit YTD in August by US$62 million, although it remains the lowest deficit for at least the past 5 years. The terms of trade have had a positive impact from the closure of the Dung Quat oil refinery which temporarily crimped crude oil imports, but has recently resumed operations.

Interest Rates

Credit growth remains lacklustre at only 1.02% in July, a slight uptick from 0.76% in June, even as the cost of funds for enterpris-es continues to fall. Outstanding loans with interest rates above 15% decreased to 24.6% in August, down from 29.1% at the end of July. Meanwhile, the latest estimate of bad debts stand at 8.6% - 10% according to the governor of the State Bank.

The Vietnam banking system fell into a state of turmoil on 21st August, upon the announcement of the arrest of ACB’s founder Mr. Nguyen Duc Kien. Fear and panic ensued in the following week with a widespread selloff in the stock market and mass withdrawals by bank customers. The risk of a bank run prompted the state bank to pledge its support for ACB. These events aptly demonstrated the fragile state of Viet-nam’s banking industry.

Consumer Price IndexFigure 7

Consumer Price Index

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-Y P

rice

Inde

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Housing and Construction Materials

Foreign Direct InvestmentFigure 10

2007 2008 2009 2010 2011 2012

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Imports and ExportsFigure 8

Trade BalanceImport

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2007 2008 2009 2010 2011 1H 2012

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FDI (

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$ bi

llion

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Committed Capital

Implemented Capital

Source: General Statistics Office of Vietnam

Source: Foreign Investment Agency

State Bank of Vietnam Interest Rates Figure 9

2007 2008 2009 2010 2011 20120

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Rat

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Source: State Bank of Vietnam

Base Discount Rate Refinancing Rate

8 News Update


September 2012

NewsUpdate

Vietnam News

Ritz-Carlton to debut in VietnamRitz-Carlton is slated to open their first hotel in Vietnam with the signing of a deal to manage a 250 room hotel located in the CBD of HCMC. The hotel forms part of the 48 storey twin tower integrated develop-ment named The One Ho Chi Minh City, which will also include prime office space, retail outlets and 350 luxury apartments.

Accor opens Novotel Saigon Centre in HCMCAccor opened Novotel Saigon Centre on the corner of Nguyen Dinh Chieu and Hai Ba Trung streets in District 1, HCMC. The hotel has 247 rooms and meeting space with capacity of 350 people. The property is located approximately a 20-minute drive from Tan Son Nhat International Airport.

Banyan Tree Laguna Lang Co Hotel to open on 1st November 2012The 5 star all-pool villa resort forms part of a 288 ha complex which will comprise of an 18 hole golf course, Angsana Residences, Ban-yan Tree Residences and Laguna Residences Lang Co. The development is situated in Lang Co Bay, approximately 60 minutes drive from Da Nang airport. Total investment capital for the first phase is US$200 million.

Hanoi to welcome first Hilton Garden InnHoan Kiem Tourism & Trading Company signed a management agreement with Hil-ton Worldwide for their 11 storey 86 room property which is scheduled to open in the second half this year.

Rex Hotel upgrades its premisesThe Rex Hotel in HCMC is upgrading a section of its premises with total investment funds of US$16 million. The newly-upgrad-ed premises will provide 125 high-class rooms on high floors and when completed, the five-star hotel will have 284 rooms in total along with a series of shops and restau-rants at the ground floor.

Novotel Phan Thiet Ocean Dunes & Golf Resort taken over by Vina Properties Development GroupNovotel Phan Thiet Ocean Dunes & Golf Resort was taken over by Vina Properties Development Group and renamed DuParc Phan Thiet Ocean Dunes & Golf Resort. This project comprises a four-star hotel with 123 rooms and an 18-hole golf course.

Etihad To Fly To VietnamEtihad Airways will add Ho Chi Minh City to its global flight network in October 2013. The daily flights between Ho Chi Minh City and Abu Dhabi will be served by two A330-200 aircraft with 262 seats.

HCMC metro line begins construction worksThe first 20 km metro line has broken ground after a long period of delay. The line will pass through Districts 1, 2, 9, Binh Thanh, Thu Duc and Di An commune in Binh Duong Province. Approximately 2.6 kms will be underground consisting of 3 subway stations and more than 17 km above ground including 11 stations.

Regional News

Red Planet Hotels buys stake in franchisor Tune HotelsRed Planet Hotels secured a 16% ownership of Tune Hotels becoming the third largest shareholder and earning a board seat. Red Planet is based in Thailand operating its own hotels with 7 properties under a franchise agreement from Tune Hotels. They have a portfolio of 20 hotels across Thailand, Indo-nesia and the Phillippines. Tune Hotels is a budget operator with 24 hotels in operation with a further 38 properties in the pipeline.

Outrigger to acquire Laguna Beach ResortHawaii-based Outrigger Hotels and Resorts entered into an agreement to purchase the 254 key Laguna Beach Resort, with the transaction expected to close in Q1, 2013. This will be Outrigger’s second managed re-sort inside Laguna Phuket, having managed the Outrigger Laguna Phuket Resort and Villas since August 2009.

Hoteliers increasingly confident in Asia’s prospectsAccording to the latest TripAdvisor Industry Index, most hoteliers are confident in the prospects of the hotel market in Asia, par-ticularly in Thailand which had the highest percentage of respondents planning to increase the number of employees over the next few years.

1.76 million international arrivals to Cambodia in the first half of 2012According to the Ministry of Tourism of Cambodia, 1.76 million foreigners visited Cambodia in the first half of 2012, an in-crease of 27% compared to the same period last year. Of the total visitors, 48% arrived to Cambodia by air, 49% by land and the remaining by sea.

9Feature Article: Franchise Agreements


September 2012

Feature Article:Franchise Agreements

How to decide on a brand?

Analyze the business mix of the proper-ty, and search for a brand that matches both the needs of the owner as well as the project.

Assess the potential benefits of the affiliation in terms of cash flow.

Determine the costs of affiliation. Compare the cost to the benefits.

Would a franchise agreement be a good option for my hotel project?It is certainly worth considering, however each project is unique in terms of product, market-ing strategy and competitive landscape, so while it may be suitable for some projects, it may not be for others.

Can I sign a franchise agree-ment for my mixed-use resi-dential resort?This is possible in some cases, but there are many issues that must be considered.

Will the franchisor manage my property?No, typically the franchisor will only offer marketing and distribution support and high level supervision of the brand standards.

Questions + Answers

Q

Hotel franchise affiliations

Franchise agreements are one method an owner can use to operate a hotel while benefiting from the recognition, distribution and reach of a brand as well as retain control over the operation of the hotel. Given the range of franchise options, the affiliation decision requires a thorough understanding of the costs and benefits of the franchise format as well as of each of the brands.

Ways to affiliate

Standard franchise agreement with a brand.

Combination of a management contract and a franchise agreement defined as a "manchise".

An independent manager plus a franchise agreement with a brand, also known as an owner-operator-brand model.

Master franchise agreement, whereby a large branded operator signs a master franchise agreement for an entire country. In this case, the franchisor is prohibited from competing with the master franchisee.

There is a very limited presence of hotel franchise chains in Vietnam with only 6 properties, which are mainly city hotels and affiliated with Best Western. The main diffi-culties for franchisors seem to be the limited experience of local developers to cope with management and ability to uphold brand standards. For these reasons franchisors are

reluctant to allow use of their brand name. However, because of the short term nature of the contracts and low level of brand com-pliance required compared to management agreements, the franchise model offers an attractive management option for local developer seeking flexibility.

Hotel franchising in Vietnam

A

Q

A

Q

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10 Investment Opportunities September 2012

InvestmentOpportunities

+84 933 902 530

[email protected]

Rudolf Hever Executive Director

TE

+84 908 556 492

[email protected]

T

E

Mauro GasparottiExecutive Director

Please don’t hesitate to contact us to discuss any of the contents in this newsletter or for more information on any of the opportunities above. We welcome your comments and suggestions for the next edition. In the meantime, don’t forget to follow us on Twitter, LinkedIn or Face-book to receive the latest updates and opportunities as they become available.

+84 836 028 591

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My NguyenResearch Executive

Hot Properties – See our website for more Hot Properties & Enquiries

Location Da NangStatus Development siteScale 3 – 5 haDescription Cleared beachfront develop-ment site with freehold approval and in close proximity to golf courses.Investment Options 100% equity stake or JV partner

Location Ha Long BayStatus Under constructionScale 150 – 200 haDescription Integrated resort, marina and entertainment complex looking for develop-ers for the subplots.Investment Options 100% equity stake in one of the 7 sub-plots or JV partner

Location HanoiStatus Operating hotelScale >300 keysDescription Operating 5 star hotel for sale.Investment Options 70% equity stake

Location HCMCStatus Development siteScale 100 – 150 keysDescription Midscale hotel development with frontage to a main boulevard in HCMC CBD looking for developer and investorInvestment Options Lease of building upon completion or JV partner

Location HCMCStatus Construction completeScale 50 – 100 keysDescription Mixed-use D3 development comprising of retail, office and residential componentsInvestment Options Serviced apartment lease or management contract

Location Phu QuocStatus Operating resortScale 50 – 100 keysDescription Established upscale resort with beachfron.Investment Options 100% equity stake

About Us

Alternaty is a boutique real estate firm providing specialist advice for hotel, resort and second home proj-ects in Vietnam and the Indochina region.

Our servicesInvestment ConsultingInvestor RepresentationHotel Operator SelectionMarket ResearchFeasibility StudyDevelopment Consulting

We specialise in Alternative OwnershipRental Pool StructuringFractional OwnershipMembership ClubsBranded Residences

Alternaty Vietnam Hotels + Resorts Newsletter, published by Alternative Real Estate Service Co., Ltd. (hereafter “Alternaty”), is a newsletter containing information about the hotel and resort market in Vietnam and Indochina region. It is provided for gener-al information purposes only. Whilst making all reasonable effort to provide correct information, no legal responsibility can be accepted by Alternaty for any loss or damage arising out of the use of or reliance on the contents of this newsletter.

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