With no international tourists, many hotels in downtown Ho Chi Minh City have had to be sold or listed for sublease, and many places are being renovated into offices.
Amore Saigon Hotel is located on Nguyen Trai Street (District 1, Ho Chi Minh City), with closed doors and long latches with lots of rental or transfer signs. When Zing was contacted, the agent informed the landlord that he had changed his mind not to sell and only rent. There is no need for further negotiation with the 15-room hotel, and the fixed rent is $7,000 (about VND 165 million). If you only rent the first floor for business, the rent is 4,000 US dollars (about 100 million VND).
Cases like the Amoremine Hotel above are not unique. Now, on Central Avenue in Ho Chi Minh City, it is not difficult to find hotels of similar status. Even a hotel on the "Golden Land" located at the intersection of Le Thanh Ton - Nguyen Trung Truc (District 1) has been sold since September 2022 for VND 155 billion, but so far there is no new owner. This money is now degraded with many graffiti.
Also on this busy Le Thanh Ton street, the Anpha Boutique hotel has been closed and has been on a rental sign for months. Talking to Zing, a person claiming to be a landlord wants to rent it out for $18,000/month (about VND 425 million), negotiable. The person said that the hotel has a total of 21 rooms, the facilities are new, and it is convenient for business trips.
Meanwhile, the once very crowded 4-star Lavender Hotel in a beautiful location on the border of Ly Tu Trong and Truong Dinh has also closed after the 4th Covid-19 pandemic. Currently this place is under construction to be used as an office. Room.
Another hotel just a few hundred meters from Lavender is also being renovated and waiting for guests.
In the absence of international visitors, the Bui Vien - Do Quang Dau West Street (District 1) area is no better. According to VisaGuide.World, Vietnam's tourism recovery rate is currently only 18.1%, while countries such as Thailand, Singapore, Malaysia or Cambodia in the region have reached levels of 26-31%. By 2022, there will be only nearly 3.5 million foreign tourists visiting Vietnam, far below the target of 5 million set by the tourism industry.
This has left a range of hotels struggling to find a new owner. For example, the Ha Vy Hotel on Do Quang Dau Street was sold for VND 93 billion for 2 years but is still closed to this day.
On Via Beavin (District 1), Rosa Hotel, Le Peptit... The hotel was silently closed for months. Sharing with Zing, real estate agent Mr. Hoang Ha recently said that the number of hotels for sale has increased at an all-time level. In particular, many hotels on the streets that previously attracted Western customers are being sold, such as Ly Tu Trong, Le Thanh Ton, Bui Thi Xuan, Thai Van Lung, De Tham...
According to Nha Tot, the number of listings for hotels for sale began to increase in the third quarter of 2022. The main reason is the sluggish operation of the tourism industry in general and the hotel industry in particular. 2022 is expected to be a year of strong recovery from the Covid-19 pandemic in 2021, but difficult economic conditions have led to continued low holiday travel demand.
According to the Savills survey, hotel occupancy in Ho Chi Minh City will reach 45% in 2022, up 20 percentage points from 2021, but down 23 percentage points from 2019, and 45% occupancy is not enough. Owners recover from the impact of Covid-19. At the same time, rental prices have failed to return to pre-pandemic levels.