REGIONAL REPORT

>> Continued from page 45

firm , signed a US $ 300 million joint venture with U . S . private equity player Warburg Pincus to develop and acquire luxury resorts in Vietnam and other Southeast Asia locations . The company also is a partner in Hoiana , a US $ 4 billion integrated resort in the works in central Vietnam .

Minor Hotels has been active in the past few years , opening four coastal resorts under the Avani and Anantara flags , and van der Hoeven expects to announce several more projects this year . He sees the best opportunities in the ultra-luxury and midscale segment , based on growing demand from affluent tourists and Vietnam ’ s middle class .

Vietnamese banks favor projects associated with proven management companies and franchise brands , and plenty of suitors are lining up to take on the challenge . Accor , a veteran operator in the country , is well-positioned to address travel demand , with 26 hotels up and running , ranging from economy to ultra-luxury , and 15 in the pipeline . The most recent addition was Vietnam ’ s first Ibis Styles , a 310-key economy property in the Nha Trang beach community .

IHG has eight hotels in development , from an InterContinental Resort in

2018

Source : Lodging Econometrics

remote Sapa to a Holiday Inn & Suites at the Ho Chi Minh Airport . IHG recently opened its second InterContinental property in Hanoi . Marriott , with 15 Vietnam projects in the pipeline , is focusing some of its efforts on building out select-service brands , with a Four Points by Sheraton opening in Danang this year and a Courtyard by Marriott slated for Nha Trang .

Movenpick Hotels & Resorts has one hotel open in Hanoi and six hotels set to open over the next three years — primarily coastal resorts — as part of an ambitious Asian expansion strategy .

Bangkok-based Absolute Hotels Services Co . has five hotels open or on track to debut over the next two years in Vietnam under the U Hotels & Resorts and Eastin Hotels & Resorts Brands . “ It ’ s definitely one of our largest markets and growing ,” says CEO Jonathan Wigley . Vietnam is emerging from its diamond-in-the rough status to become a true gem . “ I think the time is right and the market will only continue to grow ,” van der Hoeven says . “ Vietnam has so many natural assets — the people , the food , the natural beauty , a massive and varied coastline and the ability to have a lot of experiences .”

TC : It ’ s a pretty rural area . There is no grocery store on the island , and only one hospital about 50 miles away . And it ’ s an island , so most of the people we hired are not from here — the islanders are not interested in hospitality jobs . Everything is more expensive to source . And it rained a lot during construction . But we actually opened earlier than scheduled . H : What is the hotel ’ s strategy to recruit staff ?

TC : We offer better benefits , and staff housing , so they can save on that . A lot of people are curious about the Marriott culture . We have development plans for everyone , and Marriott has a number of hotels going up in Vietnam over the next couple of years , so they have opportunities to advance . We do a lot of training and work on retention . And it ’ s a cool , crazy hotel , so we try to make it fun . A lot of our associates come from big cities , and they love the idea of moving here , but after a few months they realize they are living on a small island .

H : What do you see as an advantage to running a hotel in Vietnam ?

TC : Safety and security — there is no terrorism because of the government structure and their control of who enters the country . And the government is keen to develop this as a destination that will compete with Thailand and Malaysia . There seems to be a strategic plan for the island . Besides the new airport , there are plans for roads and trash and recycling facilities . And the people are genuine , hardworking and sincere . It ’ s a completely different culture than other Southeast Asian countries . H : Less attractive aspects ? TC : The lack of experience in the hospitality industry . People are very sincere and hardworking , but across the board I think that mindset around the customer experience has to develop for Vietnam to be competitive . Retention is also an issue ; with so much development there is a lot of demand for English-speaking , well-trained associates .

46 hotelsmag . com March 2018