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Lodgis Hospitality, the investment partnership between the leading global Private Equity Firm Warburg Pincus and Viet Nam’s leading investment manager, VinaCapital – is focused on Viet Nam’s tourism industry, with the strategic aim to support the development of Viet Nam as an international tourism destination by delivering a range of high-quality hospitality real estate developments and services.
Viet Nam – timeless charm
Viet Nam – a truly fascinating country, offers a 3,260 km coastline, connecting the North and South with white-sand beaches. Beyond its significant coast, the country boasts overlapping ranges of mountains, primeval forests, and world-famous caves. The destination is also known for its rich history, deep culture and arts, and unique street food cuisine. More than its diverse natural landscape, Viet Nam also has vibrant cosmopolitan cities such as Ha Noi and HCM City, each with their own distinct ambience and rhythm. Ha Noi offers a traditional setting with heritage dating back 1,000 years. HCM City is a high energy urban and business centre with skyscrapers and a bustling streetscape. There are also the idyllic landscapes of the Vietnamese countryside and craft villages. These include bountiful fruit orchards across the Mekong Delta; narrow Hoi An streets adorned with bright red Bougainvillea trellises of ancient yellow houses; and the terraced paddy fields in Sapa.
Viet Nam and its timeless beauty
Viet Nam has become one of the top destinations in the Asia-Pacific region, attracting tourists from all over the world. The US-based Go Overseas website ranked Viet Nam 8th in its list of top 10 travel destinations for 2019, saying the nation is “filled with beauty at every turn”. As a home to eight UNESCO World Heritage sites, Viet Nam was also rated as one of the 10 most unique destinations in Southeast Asia in 2019 by The Quarterly Tourism Monitor, while Condé Nast Traveler ranked Viet Nam 9th out of 20 favourite destinations of 2020.
Factors that accelerate Vietnamese tourism into an economic juggernaut
Prior to 2020, global demand for travel and tourism was booming around the world, with growth of roughly 4 per cent per annum expected over the next decade (2019-2029). In addition, Viet Nam’s GDP growth, young population, and rapidly expanding middle class are factors driving tourism. According to World Bank statistics, between 2002 and 2018, GDP per capita in Viet Nam increased by 2.7 times, while real GDP grew by an estimated 7 per cent in 2019 – one of the fastest growth rates in the region. According to the International Monetary Fund (IMF), Viet Nam’s GDP per capita ranks 5th in ASEAN, reaching US$5,212 by 2025.
Demographic change with a population of 96.2 million in 2019 is expected to increase to 120 million by 2050. Moreover, the proportion of the young population under 35 is around 55.5% according to the Census Report 2019; while Viet Nam’s new middle class is expected to reach 26% of total population by 2026. All these factors will drive robust demand for tourism. Domestic tourism has experienced an excellent surge – a four-fold increase in the number of domestic traveler-trips, from 20.5 million in 2008 to 80 million in 2018. Generally speaking, in the 2015-2019 period, the tourism industry had a significant growth rate of 22.7%. According to the World Economic Forum’s 2019 Tourism Competitiveness Index (WEF), Viet Nam ranked 32nd globally (out of 120 countries) in terms of quantity and attractiveness of natural resources and culture, and 3rd in Southeast Asia (after Indonesia and Thailand).
The direct contribution of tourism to GDP is also increasing. If in 2015, tourism contributed 6.3% to the national GDP, the rate in 2019 was 9.2%. Tourism is gradually aiming to become a key economic sector according to the Politburo’s Resolution 08-NQ / TW dated January 16, 2017.
Despite the current situation of the COVID-19 pandemic, Viet Nam’s tourism has remained relatively resilient thanks to strong local demand and the Vietnamese Government’s leadership and success in limiting the number of cases, contact tracing and social distancing. Once international travel resumes, Viet Nam’s tourism will grow further, creating significant economic opportunities for Southeast Asia travel destinations.
By 2030, tourism is set to become a key industry, making Viet Nam one of the top 30 most competitive countries in the world in terms of tourism with an average growth rate of 11-12%/year, contributing 15-17% to GDP.
Lodgis Hospitality – Viet Nam’s leading fully-integrated hospitality investment platform with a proven track-record
Realising the enormous long-term potential of the tourism market in Viet Nam, in 2016, Warburg Pincus, VinaCapital and its co-founder Don Lam established Lodgis Hospitality with the vision to aggregate a portfolio of high-quality hospitality assets and build an institutional grade, fully-integrated lodging investment platform.
With its operating headquarters in HCM City as well as with offices in Singapore and Bangkok, Lodgis has a team of highly experienced and dedicated industry professionals with disciplines in investment, asset management, development, project management, design and operations. Through its wholly-owned hotel management company – Fusion Hotels and Resorts – the company provides management and design consultancy services across a suite of brands including Fusion Resorts, Fusion Suites, Fusion Originals, Maia, Hiive, Glow, Glow the Premium Collection and Glow Inn.
Today, Lodgis has amassed a portfolio of best-in-class hospitality assets across Viet Nam and Southeast Asia represented by more than 30 hotels, approximately 3,000 rooms under ownership and approximately 3,100 rooms managed. Leading luxury properties include one-of-a-kind hotels such as the Sofitel Legend Metropole Hanoi, Raffles Le Royal Phnom Penh, and Raffles Siem Reap.
Lodgis owns and manages one of Viet Nam’s leading, large-scale integrated resorts – Ho Tram Strip Complex – located outside of HCM City, which has the 5-star InterContinental Grand Ho Tram, Holiday Inn Resort, an international quality casino and Viet Nam’s number one ranked golf course.
Fusion Hotels and Resorts has representation in all of the leading cities and resort destinations in Viet Nam including HCM City, Da Nang, Cam Ranh, Phu Quoc, Quy Nhon, Vung Tau with many more flags under discussion. Glow has properties in Thailand’s most popular markets including Bangkok, Phuket, Pattaya, and Krabi.
Ho Tram Strip Complex has the 5-star InterContinental Grand Ho Tram, Holiday Inn Resort, an international quality casino and Viet Nam’s number one ranked golf course.
Among one of the most exciting projects at Lodgis is the planned launch and development of the Ixora Ho Tram by Fusion located at the Ho Tram Strip Complex, set along the beachfront. This exclusive beachfront development designed by leading international consultants will have 46 pool villas and 164 condotels. Ixora Ho Tram by Fusion will be part of the broader integrated Ho Tram Strip Complex, providing guests with a number of restaurant and entertainment options, whilst having a strong sense of privacy. Ho Tram is conveniently located an approximately 2-hour drive from HCM City. This location will benefit from the existing and upcoming infrastructure such as HCMC – Long Thanh – Dau Giay Expressway, Ben Luc – Long Thanh Expressway, Bien Hoa – Vung Tau Expressway, Dau Giay – Phan Thiet Expressway, Long Thanh International Airport, and Cai Mep Thi Vai Port. Ixora Ho Tram by Fusion is expected to offer appealing long-term investment potential.
In discussing our long-term Viet Nam investment strategy, Mr. Peter T. Meyer – CEO of Lodgis Hospitality – said: “Viet Nam is a beautiful country, ranking among the most exciting travel markets. With its natural beauty, interesting history, unique culture, appealing cuisine, and strong hospitality, it is a very attractive international destination. Given its great prospects, Viet Nam is central to our investment strategy. We hope to play our part in further developing Viet Nam into a world-class tourism destination.”