Nguyen Huu Duong, the owner of Dolce by Wyndham Hanoi Golden Lake, a fortnight ago announced his hotel was up for sale with a starting price of $250 million. Duong said there were several interested investors negotiating the price from China, India, and the UAE.
M&A potential could revive choppy property market, photo Le Toan
Dolce by Wyndham Hanoi Golden Lake was inaugurated in July 2020 and dubbed the first gold-plated hotel in Hanoi, with an investment of $100 million. Almost all the exterior designs and interior furniture of the hotel are covered with 24k gold. The 24-storey hotel has 360 rooms and costs up to $1,000 per night to stay.
Other hotel owners in Vietnam are ready to sell their assets to restructure their business during a turbulent period in the real estate market. Hundreds of hotels are currently offered for sale in Danang, Nha Trang, and Vung Tau in particular, due to deep losses.
In Vietnam, hospitality real estate presents potential as the country is striving to capitalise on the rebound of travel and leisure needs from both domestic and international tourists.
According to Morgan Ulaganathan, head of Asset Services and Hospitality Advisory at Colliers Vietnam, major players in private equity world have been playing a smart game over the last couple of years.
“Though interest rates are rising, it will normalise, and funds have been raising capital to invest in hospitality assets due to the current favourable valuations before hotel revenues meet their full potential,” said Ulaganathan.
Ulaganathan took the example of KKR, which had raised $4.3 billion during the height of the pandemic for these purposes. Bain, another brand, has also been acquiring unbranded and branded hotels individually and on a platform level. Blackstone was quoted that their