WINK :
Vanguard ’ s new kid in town
HOTBED OF DEVELOPMENT STILL HAS PLENTY OF UPSIDE , BUT REQUIRES PATIENCE AND PROPER PARTNERSHIPS .
Contributed BY MEGAN ROWE
inbound foreign visitors jump by more than a third last year , thanks to an influx of budget airline carriers . Its supply of hotel rooms is limited , especially at the 5-star level .
• Cam Ranh , where several dozen projects will more than double the number of hotel rooms , is doubling airport capacity to accommodate an expected influx of travelers .
• Phu Quoc , an island destination , is expected to have 17,500 rooms by 2020 , but the airport still serves relatively limited international flights aside from seasonal charters .
Another factor contributing to demand for new lodging product is the rise of Vietnam ’ s middle class . Thanks to an influx of investment over the past three decades , GDP has expanded 6.2 % annually since 2007 , raising the standard of living and creating a more mobile populace with an appetite for travel . This emerging group is feeding demand for more select-service properties , a category dominated largely by independents with a lot of room for growth .
Properties under development tend
Vietnam is one of three countries Singapore-based Vanguard Hotels has targeted for expansion in the affordable lodging segment ( the others are Philippines and Malaysia ). In Vietnam , the focus will be on Wink , a contemporary brand designed for millennials with the help of Bangkok-based branding agency Quo . Vanguard teamed up with Vietnam-based Indochina Capital and developer Kajima Corp . to launch the brand last fall .
Wink , with its minimalist and techheavy guestrooms , food cart-style foodservice and multi-purpose open lobbies designed for working and socializing , is tailored to the tastes of younger Vietnam-based travelers . “ Luxury and premium brands always talk about foreign arrivals , but we don ’ t think that ’ s as interesting as the growing population of travelers within the country ,” says Vanguard CEO Bruce Musick . He expects rates around US $ 70- $ 90 , a segment he considers “ woefully underserved .”
Seven locations are in the pipeline , with plans for 25 over the next five to seven years . Thirteen secondary markets have been targeted and the remainder will be concentrated in Hanoi , Ho Chi Minh City and Danang . Musick thinks a local partner is essential in Vietnam . “ There are limits to what foreign investors can do , whereas a local guy can move quickly and make things happen on the ground ,” he says .
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