“Resort real estate wants to be sustainable, must solve the problem of operation”

– The Vietnamese resort real estate market is entering a restructuring phase. According to experts, to develop sustainably and bring value to investors, resort real estate needs to shift its operating model, instead of waiting for asset prices to increase.

Mr. Hoang Que Linh, Director of Real Estate Business, Flamingo Holdings Group, shared about the overall picture of resort real estate, along with new operating trends that can become the key to long-term development.

Mr. Hoang Que Linh, Director of Real Estate Business Division, Flamingo Holdings Group (Photo: NVCC).

After the restructuring period, in your opinion, what will be the driving forces to help resort real estate regain its appeal?

– I see three main motivations.

Firstly, the tourism industry is experiencing a spectacular acceleration. In the first 7 months of the year alone, Vietnam welcomed nearly 93 million domestic visitors and 12.2 million international visitors, a sharp increase compared to the same period last year.

In addition, the Government has expanded visa exemption for 24 countries, extending the stay from 15 to 45 days.

Information from VARS IRE and statistics from the Departments of Culture, Sports and Tourism of provinces and cities show that currently, room occupancy rates at 4-5 star hotels in key tourism markets are recorded at 70% to 90%, even full during holidays and festivals, with room revenue increasing by 20-30% over the same period.

Second, improving transport infrastructure makes it easier to travel to tourist destinations. For example, the travel time from Hanoi to Thanh Hoa has been reduced to only about 2 hours, instead of more than 3 hours as before.

Third, tourists are no longer just looking for a place to relax but also for real experiences: festivals, cuisine, therapy… and especially the night economy, the party economy.

Flamingo Ibiza Hai Tien paves the way for the first sea tourism and entertainment business model to appear in Hai Tien sea area (Photo: Investor).

In the context of an increasingly realistic market, what do you think are the core factors to ensure stable cash flow from a resort project?

– Instead of just waiting for the asset price to increase, many investors are now more interested in the ability to exploit and operate. In my opinion, there are three key factors that determine the actual cash flow.

First, mining capacity, how to minimize asset idle time.

Second, the average customer spending ability depends on whether the utility ecosystem is attractive enough to retain and make them open their wallets. Projects that are ahead in developing the entertainment ecosystem, day and night services will benefit greatly.

And third, the quality of operations, from service, personnel to management technology. This is the real measure to ensure sustainable profits for investors, instead of just expecting long-term price increases.

Will 24/7 models be the "trump card" for resort real estate to increase its exploitation value?

– That’s right. If we only rely on selling products, resort real estate will fall into a short-term cycle. But if we can operate the “two sea seasons – two festival seasons” model, combining resort – entertainment – health care facilities, each square meter of property will generate multiple layers of revenue.

This is how to turn a short tourist season into a 365-day exploitation cycle. The important point is to build an ecosystem that is attractive and has its own identity.

For example, when there are onsen, spas, festivals…, winter becomes the “golden season”. Instead of fighting the season, we create many different exploitation seasons.

In the first 6 months of the year, the number of visitors to Hai Tien increased sharply compared to the same period last year with the attraction of a new generation of sea tourism and entertainment destination (Photo: CDT).

Models like Ibiza Neon Zone or Ibiza Vacation Villas, Mini Hotel that Flamingo Holdings is developing are the "flagship" for the new generation of sea tourism business operation thinking in Hai Tien sea area?

– We see it as an illustration of a breakthrough in resort real estate in the Hai Tien coastal area. Ibiza Neon Zone carries the spirit of a 24/7 beach tourism and entertainment destination, while Ibiza Vacation Villas and Mini Hotel are designed as villas and resort hotels with multiple layers and functions. They are both private resorts and can be rented out for business.

We aim for a new development mindset: sustainable resort real estate must generate year-round cash flow. Resort villas are not only for rental accommodation, but can also be used for F&B, spa, and event organization. This approach increases cash flow and helps investors not depend on peak seasons.

Source: https://bds.flamingogroup.vn/blog/tin-tuc/bat-dong-san-nghi-duong-muon-ben-vung-phai-giai-bai-toan-van-hanh/