Massive hotel sale announcement
Since 2021, due to the impact of the Covid-19 pandemic, a series of hotels in Da Nang have been put up for sale. Up to now, when the Covid-19 pandemic has been controlled and tourism is gradually recovering, the wave of hotel sales in this city is still taking place vigorously.
According to Dan Tri , during this time, many hotels located on the coastal roads of Son Tra and Ngu Hanh Son districts and the center of Da Nang city are being advertised for sale. On buying and selling websites, since the beginning of April, there have been hundreds of hotel advertisements for sale, mostly 4-star hotels or below, with prices ranging from 30 billion VND to hundreds of billions of VND.
Many hotels on Vo Nguyen Giap Street are for sale this April (Screenshot).
For example, on Vo Nguyen Giap Street, Son Tra District, a 4-star hotel is being offered for sale at VND600 billion. According to the listing, the hotel has an area of 580m2 and is 21 stories high. In addition to 100 rooms for rent, the hotel also has a massage room, gym, spa, restaurant, conference room, swimming pool... and underground parking.
Also located on Vo Nguyen Giap Street, another 4-star hotel is being offered for sale at VND550 billion. This hotel has an area of 620m2, 20 floors high, including 127 rooms for rent. This hotel also has a full system of restaurants, conference rooms, swimming pools... and underground parking.
Currently, some hotels located on Vo Van Kiet Street, Ha Bong Street, Do Ba Street in Son Tra District are being advertised for sale ranging from over 200 billion VND to 450 billion VND, depending on the location, area and scale of the project.
Many hotels of 3 stars or less are being offered for sale at lower prices. For example, a 3-star hotel on Phuoc Truong 1 Street, Phuoc My Ward, Son Tra District is being offered for sale at VND35 billion. This hotel has an area of 240 square meters, 5 floors, and 21 rooms.
Some brokers who are selling the above hotels said that the situation of selling hotels in Da Nang is happening a lot, more than during the Covid-19 pandemic. Most of the owners of these hotels are in need of cash flow to change business direction and pay off loans.
"The impact of the Covid-19 pandemic in 2020-2021 caused hotels to stop operating, leading to a decrease in revenue. Another reason is that many hotel owners had to borrow money from banks to invest, but now they can no longer hold out because of high interest rates," a broker shared the common reasons why many hotel owners are selling.
According to the broker, the above price is the expectation of the hotel owner. However, customers with demand can completely "negotiate deeply".
Small and medium investors are affected
Explaining the situation of hotels for sale in Da Nang, many experts said that after more than 2 years of being affected by the Covid-19 pandemic, many hotel owners are facing cash flow difficulties. The resort business is recovering slowly because tourists tend to save on spending, which has increased the pressure on maintaining operations, especially for small and medium-sized investors.
Hotels have "sprouted like mushrooms" on the most beautiful coastal road in Da Nang in recent years (Photo: Ha Phong).
Mr. Matthew Powell, Director of Savills Hanoi , commented that most of the hotels currently for sale are from individual investors - the first to fall into crisis during and after Covid-19 due to limited tourism and pressure on interest rates. In addition, these products also have difficulty competing with high-quality products from professional domestic and international developers and operators.
However, he said, this could be seen as an opportunity for buyers. They could consider specific plans for planning and developing these projects, meeting the trend of higher quality and more sustainable tourism.
According to Savills experts, resort real estate is still considered the main segment of the Da Nang market in both the hotel and resort villa sectors. According to data from this unit, in the last 6 months of 2022, the average hotel rental price reached 1.8 million VND/room/night, an increase of 60% year-on-year. The occupancy rate is equivalent to the same period in 2019 at 59%. However, the occupancy rate for the whole year of 2022 is at 48%, still 13 percentage points lower than the whole year of 2019.
According to Dan Tri , hotels and tourist attractions in Da Nang are currently preparing resources and implementing many attractive programs to serve tourists during the upcoming April 30 - May 1 holiday.
It is forecasted that hotel room capacity will increase by 5-10% compared to 2022. This year, the trend is that more guests travel with their families than in previous years. Currently, there are still not many guests booking early for the holidays. It is forecasted that guests will book rooms at the last minute will increase.
Despite positive signs, the number of visitors is still lower than before the Covid-19 pandemic, especially international visitors. Currently, Da Nang mainly welcomes Korean visitors, while Chinese visitors have not yet returned. However, the Da Nang Department of Tourism said that in the first quarter of this year, the total number of visitors served by accommodation establishments is estimated at over 1.42 million, an increase of 4.6 times compared to the same period in 2022.
Source
Comment (0)