Attraction power of Da Nang resort properties

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Attraction power of Da Nang resort properties

Update: 13:52:27 28-06-2018Date Submitted : 09:23:58 27-06-2018

According to the latest release of Savills Vietnam, the real estate market of Danang in the first half of 2017 is witnessing flourishing on most segments. In which 4-5 star hotels and resorts continue to maintain the leading position in terms of profitability as well as attracting FDI.

Attraction power of Da Nang resort properties


Rental guarantee: at least 10% per annum
 

According to statistics of Savills, in the first 6 months, Da Nang continues to maintain its position as a leading destination for domestic and international tourists. Specifically as of 30 June, the number of tourists to Da Nang reached 3.2 million, up 33% over the same period last year. In particular, international visitors increased by 72% year on year, reaching 1.2 million.
 

The number of visitors to Da Nang has increased sharply, resulting in a strong increase in the capacity and profitability of Da Nang hotels and services. Of which, 4-5 star hotels and resorts lead the market with average occupancy hitting 78%. This level of capacity is recognized as the highest in the history of Da Nang's tourism industry.
 

Survey on popular booking channels such as Booking.com or Agoda.com, at the moment, it is very difficult for tourists to place bookings for hotel rooms in the tourism complexes in Da Nang as Cocobay, Naman Retreat, etc. Most of the rooms in these complexes are fully booked till end of October.
 

With this number of tourists as well as the occupancy rates which are at a record high in Da Nang, the profit that the leading resort projects obtain and share with investors should be at 15%, not just 10% or 12% as being offered in the current market.
 

For example, one condotel at the Cocobay project has an initial investment of about VND 1.8 billion. The rental rate of it is VND2.4 million/room/night and the average occupancy rate is 65%, so the yearly rental revenue is about VND540 million. Excluding the operating and maintaining cost, and other management costs, the net profit per year will be around VND280 million, equivalent to the actual profit rate of 15% per year.
 

A variety of coastal projects are being introduced to the market.
 

Following the impressive growth of 4-5 star hotel sector, many real estate "giants" have poured billions of dollars into the real estate market in Da Nang to create the biggest world-class tourism hot spot of Vietnam: The Opal Ocean View project with more than VND4,000 billion of investment, Vinpearl Hoi An with over VND5,000 billion, Hoi An Casino with over VND4 billion , and so on.
 

Not only witnessing the birth of large-scale coastal projects, Da Nang is also becoming the capital of unique products appearing in Vietnam market such as Boutique Hotel for young people, Wellness condotels serving the needs of beauty care and energy regeneration ... And especially, most of these are under Cocobay project - the first complex of tourism and entertainment in Vietnam. In September, Empire Group announced the launch of Coco Wonderland Resort with 350 condotels, developed in the "fairy tale" style for children. To focus on such young targets, the resort is interestingly designed as a castle full of light.
 

Currently Vietnam has more than 23 million children. The income of young parents is increasing and they are willing to spend as much as they can to bring the best things to their children. Therefore, the children's entertainment market is a big "piece of pie" worth up to USD3 billion or more.
 

"Resorts with these kinds of facilities that meet all the needs and interests of children are not a lot in the current market. Coco Wonderland Resort is a bold move and will impressively attract the real estate investors. We calculated, just to exploit 1% of this piece of pie, the Empire Group together with our investors will create a remarkable success in Vietnam market." said the representative of the developer.