Seeing potential, Savills acquires Vietnam hotel advisory

Ho Chi Minh City at night. Photo by: DuyDo//Getty. (Savills makes acquisition in Vietnam)

Hotel advisory firm Savills Hotels, seeing long-term growth in Vietnam, has reportedly acquired Saigon-based hotel and resort advisory firm Alternaty. Terms of the deal were not disclosed but Asia's Mingtiandi wrote that Alternaty co-founders Mauro Gasparotti and Rudolf Hever are joining Savills’ Vietnam office following the deal.

“The merger between the Savills Vietnam office and Alternaty is of significant strategic importance to Savills Hotels, Asia Pacific,” said Chris Mancini, CEO of Savills Asia Pacific. “Alternaty’s strong foothold in Indochina enables the Savills team to engage with the growing number of investors in Southeast Asia actively seeking hotel and resort assets and will consolidate Savills already well-established investment brokerage platform.”

Vietnam continues to attract tourists and developers because of that. According to Vietnamese government statistics, international visitor arrivals to Vietnam rose to 10 million in 2016, a 4.3-percent increase compared to 2001, giving the country reportedly "the fastest-growing tourism sector in southeast Asia." 

As Mingtiandi points out, "Savills expansion of its hotel division in Vietnam comes after the company sold $2.1 billion in hospitality properties in Asia Pacific over the past two years. The acquisition allows Savills to further tap into Indochina’s emerging hospitality market, where Vietnam saw a 26-percent increase in foreign arrivals in 2016."

“The Vietnamese hotel industry is becoming more dynamic as more players enter this growing market, with the number of five-star hotel rooms in 2015 soaring by 37 percent year-on-year to reach 24,000,” Aternaty’s Hever said. “This growing trend in hotel development can be seen across all hotel segments, with an estimated 15 to 20 percent growth in total hotel supply in the short term.”

Back in April, we wrote about Vietnam attracting investment. Vietnam is poised for sustained growth as it transitions from a low-income to middle-income economy. Its middle class is expected to double in size in the seven years beginning 2013. This, combined with beautiful beaches, buzzing cities and a unique culture and cuisine have made the Southeast Asian country a prime destination for international hotel investment.