This is the first time ever Vietnamese hotels owners have to face a severe crisis. There are currently hundreds and hundreds of hotels for sale in Vietnam. On the other side, there are foreign investors with multi US$ millions budget searching for hotels to acquire in Vietnam.
But the huge problem is that Vietnam hotels owners - sellers's price are not realistic. Their hotels are 2 or 3 times overpriced compare to other countries where the same issue is happening.
Currently with Dôme Hospitality’s portfolio, we have hotels for sale in Europe offering at least a 5% yield, whereas in Vietnam the yield hardly reaches 2% at best. Last but not least, now in Europe tourism has resumed, and many hotels are enjoying a high occupancy for the summer season.
In Vietnam hotel business volume is not far from ZERO. Nobody can tell when Vietnam hotels will be able to enjoy at least 50% yearly occupancy again
Consequently for Vietnam hotels owners-sellers, there are only 2 options:
Either they have enough financial resources until September 2022, and then MAYBE they will be able to get the price they want for their hotels. Or
They don’t have these financial resources to wait for September 2022, and then there is NO OTHER SOLUTION than putting their price down by at least 50%, should they wish to quickly sell, before their overall debts increase dramatically !
It seems impossible to close a deal with a yield of 5% for an investor. Thus, if hotels owners-sellers need further advice or connections with foreign investors, feel free to contact us.
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Ask Dôme Hospitality for a free audit - consultant, please contact
Eric Baumgartner - Managing Director
P: 0786 775 851
E: eab@dome-hospitality.com
Linkedin profile: eric-baumgartner