Singapore-based hotel and serviced apartment operator Far East Hospitality is expanding its regional footprint into Vietnam

18.04.2019

The company, a 70/30 joint venture between Far East Orchard and The Straits Trading Co., signed a hotel management and technical services agreement with real estate developer Five Elements Development to manage two boutique hotels in Ho Chi Minh City, Vietnam.

Far East Hospitality will manage hotel operations and sales and marketing functions for both properties and will act as a consultant during the design, planning and construction stages of the hotels.

“Vietnam is one of the fastest growing tourism markets in the world with double-digit percentage increases in the country’s international arrivals since 2015. Furthermore, the Vietnamese government has also set a goal of 20 million foreign visitors by 2020,” Arthur Kiong, CEO of Far East Hospitality, told Singapore newspaper The Edge.

The hospitality market in Vietnam, which has been an attractive sector for investors over the past few years thanks to its consistent growth, is expected to continue to expand this year, partly due to global trends, according to Savills Hotels Asia Pacific.

Vietnam’s hospitality industry is witnessing rising interest from international and local investors. However, transactions have been limited within the operating asset segment due to the scarcity of inventory and the unwillingness of owners to dispose properties.

Source: Vietnaminsider.vn

Photo: VAM