TM

HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY

2014

The CEOs of Six Senses and The Brgenstock Collection discuss the luxury resort of the future Wimberly Interiors present a stunning 7-page portfolio of hotel design trends The 2014 hotel outlook around the world: 45 country reports from Horwath HTL Our trend spotters on asset management, sustainability, digital marketing, tourism and revenue management in 2014 Industry observations from our academic partners Cornell, Lausanne, Hong Kong Polytechnic and ESSEC

www.hotel-yearbook.com

This e-publication may be ordered online | 19.50

COUNTRY REPORT
TM

Hotel, Tourism and Leisure

At Horwath HTL, we focus one hundred percent on hotels, tourism and leisure. With over two hundred and fifty professionals world wide, our network can draw on a tremendous amount of international experience and local knowledge that gives us, and our clients, a unique advantage. We offer a broad range of advisory solutions that covers the whole cycle of the hotel product, starting with planning and development, on to asset management and operational advice, to transactional and financial restructuring. At any stage, Horwath HTL will add value to your project and ensure that you receive the very best support every step of the way. www.horwathhtl.com

Van Phan is a Consultant at Horwath HTL Singapore. She is responsible for conducting feasibility studies and valuation, advising clients on potential hotel and resort developments including market analyses, facilities recommendations and financial projections. Prior to joining Horwath HTL, Van was part of Starwood Asia Pacifics team, looking after Pre-Opening, New Builds & Transitions.

VIETNAM
2013 SNAPSHOT: The slow-growth economy saw stabilized inflation at 6.7% in June 2013 (compared to the peak 23% in August 2011), a steady exchange rate and increased reserves. According to the 2013 ASEAN Business Outlook Survey by AmCham Singapore, Vietnam is the most popular location for investment expansion in the region (57%) due to its low wages, favorable demographics, strategic location and political stability. Thailand is the next favored destination at 11%, followed by Singapore at 8%. At year-to-date October 2013, international arrivals to Vietnam grew by 14% to record approximately 6.1 million arrivals. China continues to be the largest feeder market (41% increase YoY to 1.5 million arrivals). Russia is the fastest growing market (66% increase YoY to 230,000 arrivals). The country is targeting 7.5 million arrivals by 2015. According to STR Global, year-to-date September 2013, the 3- to 5-star hotel market in Hanoi and Ho Chi Minh City (HCMC) saw occupancy increase to 66% and 67%, but ADR decrease to US$ 108 and US$ 120, resulting in YTD RevPAR increasing by a marginal 2% and 1% YoY, respectively. BUSINESS SCENARIOS FOR 2014 AND BEYOND: Despite government efforts to stimulate the economy through tax breaks and accommodative monetary policy, Vietnams economy has not been able to jumpstart from the growth slowdown. Vietnams real GDP growth is forecasted at 5.3% in 2013 and 5.4% in 2014. Without broad structural reforms, Vietnam will be facing the threat of long, slow growth, which eventually will undermine investor confidence and further worsen growth prospects. On the positive side, Vietnam, together with Thailand, Cambodia, Laos and Myanmar, recently launched the Five CountriesOne Destination Single Visa scheme under the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy, which allows non-ASEAN tourists to travel freely

by Van Phan

across their borders. By 2015, these 5 countries expect to receive 50 million international arrivals. Vietnam will certainly benefit from such synergies. According to STR Global, the hotel supply pipeline for Vietnam year-to-date September 2013 stood at 46 hotels representing about 10,000 rooms, mostly expected over the next three years. HCMC outlook: Due to the lack of tourism infrastructure in HCMC, repeating international tourists prefer to travel directly to other tourist places without transiting in HCMC. After a breakthrough in 2010/11 with more than a 10% increase in ADR and RevPAR, the hotel market in HCMC has not succeeded in maintaining this growth. However, acting as a gateway to Vietnam, HCMC should continue to experience growth in arrivals, allowing for sustained occupancy levels in the range of 65% to 70%. Hanoi outlook: Upon completion of Terminal 2 in April 2015, Noi Bai International Airport will be able to handle 16 million passengers per annum and compete with Tan Son Nhat International Airport in HCMC as the preferred gateway to Vietnam. Hanoi remains an attractive destination for international tourists given its historical and cultural elements. With the entrance of international branded hotels, including the Hilton Garden Inn, JW Marriot and InterContinental Landmark 72 in 2013/14, the hotel market ADR is anticipated to increase due to high price points from this new supply, but market occupancy will be negatively affected in the short run.

www.hotel-yearbook.com

Country reports are brought to you by Horwath HTL

87

COUNTRY REPORTS

al leader in hospitality consulting

ty consulting network and are the industry choice; markets. Over the last 20 years, Horwath HTL has ment in thousands of projects. We use this experience h 50 offices across 39 countries - whatever your

wath HTL can help you succeed.

TM

TM

Global Global leader leader in hospitality in hospitality consulting consulting

Hotel, Tourism and Leisure

TM

Globa

Hotel,Hotel, Tourism Tourism and Leisure and Leisure

Horwath Horwath HTLHTL is the is the worlds the worlds number number one one hospitality hospitality consulting consulting network network and and are the are industry the industry choice; choice; a global a global brand brand offering offering complete complete solutions solutions across across all markets. all markets. Over Over the last the last 20 years, 20 years, Horwath Horwath HTLHTL has has gained gained extensive extensive market market knowledge knowledge through through involvement involvement in thousands in thousands of projects. of projects. We use We use this this experience experience to bring to bring the maximum the maximum value value to any to any assignment. assignment. With With 50 offices 50 offices across across 39 countries 39 countries - whatever - whatever your your requirements, requirements, large large or small, or small, national national or global, or global, Horwath Horwath HTLHTL can can helphelp you you succeed. succeed.

Horwath HTL is the the worlds number one hospitalit a global brand offering complete solutions across all m www.horwathhtl.com www.horwathhtl.com gained extensive market knowledge through involvem to bring the maximum value to any assignment. With requirements, large or small, national or global, Horw

TM

HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY

2014

The CEOs of Six Senses and The Brgenstock Collection discuss the luxury resort of the future ESPAs Sue Harmsworth on the coming changes in the global hotel spa industry The 2014 hotel outlook around the world: 45 country reports from Horwath HTL Our trend spotters on asset management, sustainability, digital marketing, tourism and revenue management in 2014 Industry observations from our academic partners Cornell, Lausanne, Hong Kong Polytechnic and ESSEC

This e-publication may be ordered online | 19.50

www.hotel-yearbook.com

For more country reports by Horwath HTL

Click here to purchase the full edition of The HOTEL Yearbook 2014

PUBLISHER

PUBLICATION PARTNERS

TM

WWW.HOTEL-YEARBOOK.COM