No hotels, resorts sold in Vietnam amid pandemic

There were no mergers and acquisitions in the hospitality industry in the first half of the year as uncertainty caused by the Covid-19 outbreak gripped it.

Vietnam, M&A, hospitality, hotel, resort, six months, H1 2020, Savills

Mauro Gasparotti, director of real estate consultancy Savills Hotels Asia Pacific, said at a recent event that there would be fewer M&A deals through this year compared to last year since the pandemic has made evaluating assets and forecasting risks more difficult.

The limited number of flights also prevent buyers from inspecting properties, and so negotiations are delayed, he said.

Four- and five-star hotels are still holding up but those with three stars and below are facing challenges since there are few guests, he said, explaining that some have 10 percent occupancy rates while the minimum to sustain operation is 35 percent.

There could be more M&A deals next year and in 2022, but an exact time for recovery is hard to forecast since it depends on the resumption of flights, he said.

Vietnam’s revenue from lodging and food and drinks in the first eight months fell 16.4 percent year-on-year to VND322.5 trillion ($13.9 billion), according to the General Statistics Office.

Foreign tourist arrivals in the period fell 66.6 percent to 3.77 million, it added.

News Related

OTHER NEWS

Thai commodities satisfy Vietnamese tastes

Thai commodities satisfy Vietnamese tastes Read more »

Vietnam Airlines to run first routine commercial flight in months

National flag carrier Vietnam Airlines is scheduled to operate a flight from Seoul in South Korea to Hanoi on Friday, the first routine inbound commercial in more than six months. Amid the on-going... Read more »

Mobile World’s ‘miniaturization’ strategy

Mobile World (MWG) has recently launched new business models, when the old growth drivers were the Dien May Xanh chain, The Gioi Di Dong chain started to slow down, and Bach Hoa. Green... Read more »

Rugged future ‘Southeast Asian silk strip’

The fierce competitive environment and geopolitical uncertainties have caused the biggest airline ‘Land of the Golden Temple’ to decline step by step and eventually have to file for bankruptcy. Thai Airway Airlines aircraft... Read more »

Fire roofing solar power system at GEG

The solar power system on the roof of the workshop of Gia Lai Electrical Joint Stock Company (Code: GEG) at Dien Phu Industrial Cluster (Dien Phu commune, Pleiku city) suddenly caught fire on... Read more »

Listed companies with best investor relations in 2020 announced

Tai Viet JSC – Vietstock and finance and life newswire Fili.vn released a list of local listed companies with the best investor relations (IR) on September 22. At the award ceremony (Photo: thanhnien.vn)... Read more »

FTAs implementation under review

The National Assembly Standing Committee’s supervision delegation in charge of the implementation of free trade agreements (FTAs) to which Vietnam is a member held a working session with the Government, ministries and agencies... Read more »

Vietnam attends 61st WIPO Assembly meeting in Geneva

A Vietnamese delegation, led by Ambassador Le Thi Tuyet Mai – Permanent Representative of Vietnam to the UN, the World Trade Organisation (WTO) and other international organizations attended the 61st meeting of the... Read more »

Workers protests as managers fled at Hai Duong company

Hundreds of workers at the Shop-Vac Vietnam Company in Hai Duong Province have stopped work over recent days to protest against delayed wages. Workers have stopped working and surrounded the headquarters of Shop-Vac... Read more »

Vietnam remains a magnet for Singaporean investors

Vietnam’s growing stature in the region and the world and its impressive containment of COVID-19 have continued to consolidate its status as an attractive destination for Singaporean investors. Read more »