Hospitality segment on the rise in Da Nang
Da Nang holds substantial potential for real estate investment with major opportunities available in the hospitality segment, according to the latest report from real estate consultants Savills.
Da Nang City
Hotel supply in the fourth quarter of 2016 was approximately 9,030 rooms following the entry of four three- to four-star hotels, an increase of 5 per cent quarter-on-quarter and 19 per cent year-on-year.
Room tariffs in all segments increased, by 18 per cent year-on-year, and average revenue rose 26 per cent.
Nine four- to five-star hotels supplying approximately 2,200 rooms will come this year.
Condotel stock in the fourth quarter of 2016, meanwhile, was approximately 3,910 units from ten projects, of which 1,325 were primary supply.
Son Tra district had the most, with 50 per cent, followed by Ngu Hanh Son district with 44 per cent.
Total apartment stock was 3,495 units from 15 projects, of which 520 are primary supply. Ngu Hanh Son district had the most, with 30 per cent, followed by Son Tra, Hai Chau and Thanh Khe districts.
Savills said that guaranteed returns are offered in many condotel projects’ pre-sales programs.
APEC 2017, being held later in the year in the central city, will likely increase condotel performance and spur a rash of investments.
The report also noted that Da Nang continues to establish itself as a competitive coastal location for both domestic and international tourists.
It welcomed 5.51 million visitors last year, up 18 per cent year-on-year, according to the Da Nang Department of Culture, Sports and Tourism.
International arrivals were 1.66 million, an increase of 31.6 per cent, with 3.84 million domestic tourists also visiting the city, up 12.5 per cent. Total tourism revenue was estimated at VND16 trillion ($727.2 million), up 24.7 per cent.
Da Nang aims to make tourism a leading economy sector from 2016 to 2020, Mr. Tran Chi Cuong, Deputy Director of the Department of Culture, Sports and Tourism told the “2016 Da Nang Spring Tourism Forum”.
It has set a target of welcoming 8 million tourists annually by 2020, including 2 million foreign visitors, and earning VND27.4 trillion ($1.23 billion) in revenue.
VN Economic Times