HCMC sees numerous hotels available for sale amid lackluster economy

Due to the slow recovery in tourism, many hotel owners in Ho Chi Minh City are looking to sell their properties and are willing to lower their prices by 30%. Real estate brokers have noticed a surge in hotels being put up for sale, with some listed for as low as VND25 billion.

The economic slowdown, combined with the lack of tourism, has caused hotel owners to consider selling their properties and switching to other industries. Hotel prices have fallen rapidly, with some large ones declining by up to 30%. The situation is expected to continue since signs of economic recovery, both globally and domestically, are weak.

Savills Vietnam data shows that around 67% of hotel rooms were closed for renovation at the end of the first quarter, with no clear indication of when they will resume operations. The city received 8.54 million tourists in the first quarter, with only 12% of them being foreigners. Mergers and acquisitions in the hotel industry have been ongoing since 2020 due to Covid-19 but have picked up pace due to the slower-than-expected economic recovery.

According to Trang Minh Ha, chairman of investment firm North Stars Asia, the number of foreign tourists has not increased as quickly as expected due to Vietnam’s more cumbersome visa policy compared to its neighbors.