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Hotel in Hanoi, Ben Thanh Tourist to build 1,000 hotel rooms by 2012

HCMC-based Ben Thanh Tourist plans to nearly triple their hotel rooms in the next five years given the growth of the tourism sector, said the company's General Director Than Hai Thanh.

Ben Thanh Tourist currently has about 350 rooms and will construct 1,000 more rooms by 2012, Thanh told the Daily last Friday during the grand opening of the company's latest development, the four-star Park View Hotel in Hue.

"We believe that the country will need more than the current number of hotels and tourist facilities in order to keep up with growing demand," he said.

Vietnam expects to receive 4-4.4mil foreign visitors this year, and six million visitors in the next three years.

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Ben Thanh Tourist will build new hotels in Mui Ne in Phan Thiet City, Long Hai Beach in Ba Ria-Vung Tau Province, Hue, and Danang.

The total investment is VND800bil (US$50mil). "We will either build standalone hotels or join in with our mother company, Ben Thanh Corporation, to develop other projects," Thanh said.

The Park View at 9 Ngo Quyen in Hue was developed by Ben Thanh-Phu Xuan Co., Ltd., which is 52% owned by Ben Thanh Tourist, 25% by Co Do Tourist Co., Ltd and 23% by Phan Thanh Co., Ltd contributed 23%.

The Park View measures 4,640 square meters and has 120 rooms, a 300-seat meeting space, four restaurants, and a number of other tourist-oriented facilities.

The total cost of building additional rooms and upgrading facilities totaled VND80bil (US$5mil).

Other hotels owned by Ben Thanh Tourist include the four-star Sandy Beach Resort in Danang and the Vien Dong Hotel and Ngan Ha Hotel in HCMC.

The company also holds stake in a few building projects in HCMC, including a 35-story building at 5 Me Linh Square and a 19-story building at 172-174 Ky Con in District 1.

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Thanh said that developing accommodations for both tourists and corporate guests will be the company's main focus for the next few years.

Since January, Ben Thanh Tourist has spent over VND45bil restoring the Tu Do Restaurant and the Vien Dong Hotel in downtown of HCMC. Other investments include constructing an office building in the city.

HCM City: extensive potentials for hotel market

The number of foreign visitors travelling to HCM City in the first quarter of 2008 rose by 20% year on year, with hotel occupancy rate averaging 85%. The hotel market, therefore, is very attractive.

According to the Vietnam National Administration of Tourism (VNAT), the city has 872 hotels, including 11 five-star, 8 four-star and 26 three-star hotels, supplying around 22,000 rooms. Last year HCM City welcomed 2.7 million international tourists, a surge of 14.8% compared to 2006.

In the first three months of this year, the city hosted 840,000 foreign visitors, up by 20% compared to the same period of last year, reaching its 28% annual target (3 million).

It is forecast that the need for hotel rooms will greatly increase, especially the demand for five-star hotel rooms. The HCM City Department of Tourism said the city needs to build an additional 12,000 hotel rooms from now to 2010, including around 7,000 rooms of 3 to 5 star standard to satisfy around 7.3 million foreign visitors.

According to a survey by the local Department of Tourism, the demand for luxurious hotels is rising. The room occupancy rate at 3-5 star hotels is at 80 to 90%.

From now to 2013, the city will have around 4,700 new hotel rooms compared to the real need of 12,000 rooms. The new hotels will be mainly put into operation after 2010. As a result, in the next several years, HCM City will lack hotel rooms so room rates may reach $500/day in the travel season.
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