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1 CBRE | HOSPITALITY EVENT | AUGUST 2016
Presented by
Marc Townsend, Managing Director, CBRE Vietnam
Robert McIntosh, Executive Director, CBRE Hotels, Asia Pacific
SOFITEL LEGEND METROPOLE
2 CBRE | HOSPITALITY EVENT | AUGUST 2016
AGENDA
VIETNAM HOSPITALITY MARKET
VIETNAM IN A REGIONAL CONTEXT
PANEL DISCUSSION
1
2
3
- Mr. Minh Ha, Director of Development - Vietnam, Accor Group
- Mr. Craig Douglas, Head of Hospitality Division, BRG Group, Director
Hospitality Advisor, Vinacapital
- Mr. Robert McIntosh, Executive Director, CBRE Hotels, Asia Pacific
- Mr. Charlie Kelly, Managing Director, DWP
Moderator: Marc Townsend, Managing Director, CBRE Vietnam
3 CBRE | HOSPITALITY EVENT | AUGUST 2016
Seawater on central coast is now safe
for swimming, fish
farming.
4 CBRE | HOSPITALITY EVENT | AUGUST 2016
TOURISM GROWS WHILE MORE TRANSPORTATION SERVICES EXPAND
Vietnams budget carrier secures major
deal with Boeing Expansion plan of the 720-ha Noi Bai 2
Pending approval of Sapas 261-ha airport Inauguration of Cam Ranhs international
seaport
May 23, 2016 June 01, 2016
March 09, 2016 May 17, 2016
5 CBRE | HOSPITALITY EVENT | AUGUST 2016
NORTHERN TOURISM: LET BEAUTY AWAKE
Stunning tourist destinations to
appear in Hollywood blockbuster
Northern localities sign deal to
boost tourism connections
AND NEW PROJECTS ARE ON THE WAY
BETTER IMAGES, BETTER COOPERATION, GREATER POTENTIAL
Impressive increase of tourist
arrivals
LARGE SCALE PROJECTS COME ON STREAM
6 CBRE | HOSPITALITY EVENT | AUGUST 2016
VIETNAMS AVIATION INDUSTRY TAKES OFF
Source: Newspaper, retrieved on August 22nd 2016
Feb 29, 2016
Jul 28, 2016
Apr 27, 2016
7 CBRE | HOSPITALITY EVENT | AUGUST 2016
OLD AIRPORTS NEW TERMINALS Old airport
max pax per year
Hai Phong 1,200,000
Hanoi 25,000,000
Da Nang 5,000,000
Long Thanh N/A
HCMC 26,500,000
Hai Phong new terminal
HCMC airport expansion
under construction
Hanoi airport expansion
under planning
Dong Nai Long Thanh
airport under designing
process New airport
max pax per year
Hai Phong 4,000,000
Hanoi 50,000,000
Da Nang 13,000,000
Long Thanh 100,000,000
HCMC 40,000,000
Da Nang airport expansion
under construction
8 CBRE | HOSPITALITY EVENT | AUGUST 2016
Dec 3, 2014
May 23, 2016
ISSUES NEED TO BE TACKLED
Vietnams Almost Non-Existent
Tourism Marketing Holding Back
Growth
Source: Newspaper, retrieved on August 22nd 2016
Jun 14, 2016
Apr 30, 2016
9 CBRE | HOSPITALITY EVENT | AUGUST 2016
AND FLAMED CRUISE, SUNK BOAT, MISSING TOURISTS
10 CBRE | HOSPITALITY EVENT | AUGUST 2016
MONTHLY DASHBOARD AUGUST 2016
(*) Current lending rate is the average lending rate surveyed at ten banks, and only applicable for home loan. However, the back-dated numbers were the average rate
announced publicly at that point of time, applied for all sectors and all banks. The average lending rate is for reference only.
(**) Deposit rate is the average deposit rate from a sample comprised of ten banks, in which the rates are announced publicly on their websites and can be tracked backwards.
ECONOMIC
INDICATORS 2Y 1Y 6M 3M 1M Current
CPI (%) y-o-y 4.9 0.9 0.8 1.4 1.7 1.8
Trade balance
(US$, bil) (0.3) (0.5) (0.2) 0.1 (0.1) 0.1
Retail & services
Turnover (VND, tril) 238.7 204.8 297.7 279.8 295.8 295.7
BANKING & FINANCE 2Y 1Y 6M 3M 1M Current
VN-Index 640.6 570.9 559.4 616.0 652.2 663.8
USD/VND (inter-bank) 21,246 21,890 21,914 21,862 21,862 21,875
Local gold (VND mil/tael) 36.3 34.0 33.4 33.3 36.8 36.4
Lending Rate (%)* 13.1% 8.4% 7.6% 7.3% 7.0% 7.4%
Deposit rate (%)**
(1-year term) 7.1% 6.2% 6.4% 6.7% 6.7% 6.7%
REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current
Real Estate Holding &
Development Listed
Companies
55.89 48.25 44.63 50.29 51.00 48.42
Real Estate Services
Listed Companies 61.06 46.4 35.1 29.48 28.3 27.72
Source: Stockbiz, Aug 22nd , 2016
Source: GSO, July, 2016
Source: GSO, SBV, SJC & HSX, Aug 22nd , 2016
NEW LAUNCHES 2Y 1Y 6M 3M 1M Current
HCMC New launches
(unit) 63,643 37,227 19,875 12,142 5,235 740
HN New launches (unit) 39,918 21,353 10,705 7,225 4,257 1,154
Source: CBRE, Aug 22nd, 2016
11 CBRE | HOSPITALITY EVENT | AUGUST 2016
BCI NUMBERS
All Future
Projects
(2015-2030)
HCMC Hanoi Da
Nang
Can
Tho
Nha
Trang
Vung
Tau
Hai
Phong
Office 237 234 52 5 9 6 49
Retail 146 115 53 17 11 5 24
Hospitality
and SA 36 25 43 27 19 7 12
Residential 372 159 29 11 14 6 17
Total 791 533 177 60 53 24 102
Projects
Under
Construction
HCMC Hanoi Da
Nang
Can
Tho
Nha
Trang
Vung
Tau
Hai
Phong
Office 144 144 25 4 4 4 16
Retail 96 72 38 10 7 5 1
Hospitality
and SA 21 16 33 17 14 6 3
Residential 275 95 16 7 8 5 3
Total 536 327 112 38 33 20 23
Source: www.bciasia.com; CBRE Vietnam, Aug 2016. Source: www.bciasia.com; CBRE Vietnam, Aug 2016.
Projects under construction, y-o-y change All future projects (2016 2030), y-o-y change
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
HCMC Hanoi DaNang
PhuQuoc
NhaTrang
VungTau
QuangNinh
Perc
en
tag
e c
han
ge
2016 YTD vs 2015 2015 vs 2014
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
HCMC Hanoi DaNang
PhuQuoc
NhaTrang
VungTau
QuangNinh
Perc
en
tag
e c
han
ge
2016 YTD vs 2015 2015 vs 2014
http://www.bciasia.com/http://www.bciasia.com/
12 CBRE | HOSPITALITY EVENT | AUGUST 2016
BIG BRANDS ENTER AND EXPAND
13 CBRE | HOSPITALITY EVENT | AUGUST 2016
FROM A&EM TO FLC
FLC_ Luxury Resort Sam Son (37 ha)
FLC _ Quy Nhon Beach & Golf Resort (1.000 ha) VINGROUP _ Vinpearl Resort & Golf
PHU QUOC ISLAND
VINGROUP_Vinpearl Safari
SUN GROUP_
Premier Residence Phu Quoc
Emerald Bay
SUN GROUP_Premier Condotel
Da Nang City
SUN GROUP_
Premier Village Phu Quoc Resort (73 ha)
SUN GROUP_InterContinental Da Nang Sun Peninsula Resort (120 ha)
VINGROUP_Vinpearl Ha Long Bay
VINGROUP_Vinpearl Luxury Da Nang (15 ha)
VINGROUP_Vinpearl Resort & Villas
Nha Trang City
VINGROUP_Vinpearl Golf Land Resort & Villas (16 ha)
Nha Trang City
VINGROUP_Vinpearl Beachfront Condotel
Nha Trang City
VINGROUP_Vinpearl Empire Condotel
Nha Trang City
SUN GROUP_Premier Village (15 ha)
Da Nang City
VINGROUP_Da Nang Vinpearl Premium (15 ha)
SUN GROUP_Ha Long Ocean Park (195 ha)
BIM _Intercontinental (9.2 ha)
BIM_Ha Long Marina Urban Area (248 ha)
North
South
Central Coast
14 CBRE | HOSPITALITY EVENT | AUGUST 2016
Significant Increase in Second Home Villas and Condos Sales
SECOND HOME MARKET
103 units
2014
481 units
2015
Nha Trang
1H 2016
1,648 units
Phu Quoc
2014 2015 1H 2016
0 units
850 units
636 units
7 units
2014
180 units
2015 1H 2016
Da Nang
1,644 units
Source: CBRE Vietnam. Source: CBRE Vietnam. Source: CBRE Vietnam.
15 CBRE | HOSPITALITY EVENT | AUGUST 2016
GUARANTEED YIELD & BANK LOAN SUPPORT SALES
Min. 9%/year (for VND) or
Or 85% of revenue after tax in 10 years
F.Home Da Nang
Guaranteed yield 9-10%/year
Or 85% of net income after tax in 10 years
Vinpearl Riverfront Condotel Da Nang
Cocobay Ocean Condotel
Guaranteed Yield 12%/year in 8 years Free 15 nights per year
Loan up to 70% in 20 years
Ariyana Beach Resort & Suite
Guaranteed yield 10%/year in 10 years
Source: Retrieved from the internet, May 2016.
Alphanam Luxury Apartment
Guaranteed leasing price at US$7,466/year for one-
bedroom units and US$11,733/year for two-bedroom units
in 5-10 years.
16 CBRE | HOSPITALITY EVENT | AUGUST 2016
ITS ONLY A MATTER OF TIME
PHUKET
China (22 cities)
Singapore
Hong Kong
South
Korea
Russia Finland
Indonesia Australia
Philippines
Switzerland
Germany
United Arab
Emirates
Qatar
Malaysia
Thailand
Singapore
Cambodia
International Destination Local Destination Flights per day
(both international and local)
Phuket 30 cities 6 cities 128
Da Nang 20 cities 9 cities 94
Phu Quoc 3 cities 4 cities 23
China (12 cities)
South Korea
(2 cities)
Hong Kong
Laos
(2 cities)
Malaysia
Japan
PHU QUOC
Singapore
HCMC
Cn Th
Hanoi
17 CBRE | HOSPITALITY EVENT | AUGUST 2016
Phu Quoc Dynamic Construction Site
HOSPITALITY
JW Marriott Hotel
InterContinental
Hotel
Novotel Hotel
Sunset Sanato
Grand World
Vinpearl Resort (P2) Vinpearl Safari
202 projects granted
Investment Certificate in
2015
25 Under construction
projects
54 Future projects
Source: Kien Giang Planning and Investment Department and BCI
18 CBRE | HOSPITALITY EVENT | AUGUST 2016
INVESTORS BET ON CASINO DECREE
New Vietnam Casino Proposal A
$4 Billion Gamble
$4 billion South Hoi An
casino resort to kick
off in late April
Jun 19, 2016
Jul 21, 2016
Apr 12, 2016
19 CBRE | HOSPITALITY EVENT | AUGUST 2016
INTEGRATED RESORTS
Open in 2016
Mercure bana hills French village:
494 rooms
Fantansy park
Alpine coaster
Spiritual landmark
Landscape architecture
Open in 2014
Vinpearl resort: 750 rooms
Amusement park: Vinpearl
Land
Vinpearl Safari
27-hole golf course
To open in 2017
Hotel: 300 rooms
Crowne Plaza Phu Quoc Starbay will
be part of the new Star Bay/Green Hill
development, which will also feature a
lagoon, beach village and a range of shops, restaurants and bars.
Open in 2015
Vinpearl Resort: 384
rooms
Kids Club
Meeting venues
Outdoor tennis courts
Natural beaches
Phu Quoc Da Nang Phu Quoc
Ha Long Open in 2015
FLC Luxury Hotel: 480
rooms
FLC Samson Golf Links:
18-hole golf course
Restaurants and spa
Thanh Hoa
20 CBRE | HOSPITALITY EVENT | AUGUST 2016
GOLF COURSES IN VIETNAM
Source: CBRE Vietnam, Q4 2015
NORTH
13 active golf courses
23 golf courses under planning
CENTRAL:
5 active golf courses
37 golf courses under planning
SOUTH:
17 active golf courses
26 golf courses under planning
Source: General Statistics Office of Vietnam
4 courses currently offer property for-sale
TOTAL NEW GOLF COURSES
BY 2020: 96
23 out of 35 with integrated real estate
component (hospitality/
residential units)
21 CBRE | HOSPITALITY EVENT | AUGUST 2016
INVESTMENT DEALS IN HOSPITALITY MARKET
Novotel Saigon Centre
Kumho Asiana Plaza
Kumho Asiana
Mapletree
305 rooms
Operation year: 2009
Duxton Hotel Saigon
Low Keng Huat
New Life RE
197 rooms
Operation year: 1995
Que Huong Liberty
SGGV Investment
247 rooms
Operation year: 2012
HCMC HCMC
Investors interest remained robust
Sedona Suite Hanoi
Keppel Land Ltd
BRG Group
175 rooms
Operation year: 1998
HCMC Hanoi
22 CBRE | HOSPITALITY EVENT | AUGUST 2016
INVESTMENT DEALS IN HOSPITALITY MARKET
0
5
10
15
20
25
30
35
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
Dev Site Hotel Office
Apartment Industrial Retail
Source: RCA, June 2016
Number of transactions, Vietnam Hotel Sales in Vietnam in USD
Source: CBRE Research, Q2 2016. Transactions include hotel deals above US$10 million.
23 CBRE | HOSPITALITY EVENT | AUGUST 2016
Construction Cost
HOTEL MARKET
1,000
1,250
1,500
1,750
2,000
2011 2012 2013 2014 2015
Co
nstr
uctio
n C
ost (U
S$
/GFA
sm
)
3-Star Budget Hotel, incl. F.F.&E 5-Star Budget Hotel, incl. F.F.&E
Source: Langdon Seah.
F. F & E includes interior decoration and loose furniture etc. but excludes hotel operated equipment costs (e.g. cutlery, crockery, linen, uniform, etc.)
Construction cost (US$/sm GFA)
24 CBRE | HOSPITALITY EVENT | AUGUST 2016
Serviced Residences
HOSPITALITY MARKET
Elegant Suites Westlake,
Hanoi
The Waterfront
Saigon
Supply, Serviced Apartment (rooms)
Source: CBRE Vietnam.
5 000
10 000
15 000
20 000
Bangkok Hanoi HCMC
Nu
mb
er
of
un
its
2006 2016
25 CBRE | HOSPITALITY EVENT | AUGUST 2016
NEW CABLE CARS ACROSS THE COUNTRY
SAPA - The worlds LONGEST triplewire cable car system
QUANG NINH: The worlds LARGEST CABIN cable car system
Completed year: 2016
Total length: 6,292.5 m
No. of cabin: 35
Capacity: 35 persons/cabin
Completed year: 2016
Total length: 2,222 m
No. of car: 66
Capacity: 230 persons/cabin
DA NANG - The worlds LONGEST onewire cable car system
PHU QUOC - The worlds LONGEST cable car system when completed
NHA TRANG ONLY sea-crossing cable car in Vietnam Completed year: 2007
Total length: 3,320 m
No. of cabin: 65
Capacity: 8 persons/cabin
Completed year: 2009
Total length: 5,043 m
No. of cabin: 94
Capacity: 10 persons/cabin
Expected completed year: 2017
Total length: ~ 8,000 m
No. of cabin: 70
Capacity: 30 persons/cabin
26 CBRE | HOSPITALITY EVENT | AUGUST 2016
27 CBRE | HOSPITALITY EVENT | AUGUST 2016
AGENDA
VIETNAM HOSPITALITY MARKET
VIETNAM IN A REGIONAL CONTEXT
PANEL DISCUSSION
1
2
3
- Charlie Kelly, Managing Director, DWP
- Le Hoang Vu, Senior Vice President - Hospitality Management, M.I.K Corporation
- Tony Chisholm, Area General Manager Southern Vietnam, Accor Group
- Robert McIntosh, Executive Director, CBRE Hotels, Asia Pacific
Moderator: Marc Townsend, Managing Director, CBRE Vietnam
28 CBRE | HOSPITALITY EVENT | AUGUST 2016
Robert McIntosh is the Executive Director responsible for advisory and
valuation work in CBRE Hotels in Asia Pacific. Based in Singapore he has
over 30 years property experience, 20 of which are in hotels. The
division services the hotels and leisure industry including resorts, golf
courses, casinos, theme parks, pubs, hotels and motels.
Roberts experience has been wide ranging in terms of geography, property
type and skills. He has been involved in advisory, valuation, operator
selection, consulting and sales assignments throughout the Asia Pacific
region. In addition he has advised on the restructuring of various portfolios,
due diligence assignments and the listing of real estate assets.
29 CBRE | HOSPITALITY EVENT | AUGUST 2016
HOSPITALITY TRENDS AND OUTLOOK
VIETNAM IN A REGIONAL CONTEXT
AUGUST 2016
30 CBRE | HOSPITALITY EVENT | AUGUST 2016
This presentation has been prepared in good faith based on CBREs current views of the
commercial real-estate market. Although CBRE believes its views reflect market
conditions on the date of this presentation, they are subject to significant uncertainties and
contingencies, many of which are beyond CBREs control. In addition, many of CBREs
views are opinion and/or projections based on CBREs subjective analyses of current
market circumstances. Other firms may have different opinions, projections and analyses,
and actual market conditions in the future may cause CBREs current views to later be
incorrect. CBRE has no obligation to update its views herein if its opinions, projections,
analyses or market circumstances later change.
Nothing in this presentation should be construed as an indicator of the future performance
of CBREs securities or of the performance of any other companys securities. You should
not purchase or sell securities of CBRE or any other company based on the views
herein. CBRE disclaims all liability for securities purchased or sold based on information
herein, and by viewing this presentation, you waive all claims against CBRE and the
presenter as well as against CBREs affiliates, officers, directors, employees, agents,
advisers and representatives arising out of the accuracy, completeness, adequacy or your
use of the information herein.
DISCLAIMERS AND WAIVERS
31 CBRE | HOSPITALITY EVENT | AUGUST 2016
HOTEL MARKET OUTLOOK AND PROSPECTS 2016
Market Performance
Investment
Opportunities & Challenges
Visitor Arrivals
32 CBRE | HOSPITALITY EVENT | AUGUST 2016
HOTEL MARKET OUTLOOK AND PROSPECTS 2016
Market Performance
Investment
Opportunities & Challenges
Visitor Arrivals
33 CBRE | HOSPITALITY EVENT | AUGUST 2016
VISITOR ARRIVALS - REGIONAL Thailand, Japan and Indonesia lead in terms of growth
-10%
0%
10%
20%
30%
40%
50%
0
5
10
15
20
25
30
Thailand China Malaysia Japan Singapore Hong Kong* Indonesia Vietnam Australia
Arrivals Growth
International Tourist Arrivals & Growth Comparison 2015 (million)
*Excluding China market
Source: Local Tourism Agency
34 CBRE | HOSPITALITY EVENT | AUGUST 2016
VISITOR ARRIVALS VIETNAM Increase in arrivals likely to exceed target of 8.5m in 2016
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2015 (YTD
June)
2016 (YTD
June
% Change Visitor Arrivals SINGAPORE Annual Visitor Arrivals
Visitor Arrivals Annual change in Arrivals
Annual Visitor Arrivals & Change
Source : STR, CBRE Hotels
VIETNAM
35 CBRE | HOSPITALITY EVENT | AUGUST 2016
HOTEL MARKET OUTLOOK AND PROSPECTS 2016
Market Performance
Investment
Opportunities & Challenges
Visitor Arrivals
36 CBRE | HOSPITALITY EVENT | AUGUST 2016
CURRENCY COMPARISON Long term weakness is a benefit
37 CBRE | HOSPITALITY EVENT | AUGUST 2016
CURRENCY COMPARISON Others are starting to strengthen
38 CBRE | HOSPITALITY EVENT | AUGUST 2016
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Economy
Midscale
Upscale
Luxury
Source: STR Global, CBRE Hotels
Room Supply by Market Scale - Existing
SUPPLY REGIONAL GRADES OF HOTELS Fewer Upscale hotels in Vietnam
39 CBRE | HOSPITALITY EVENT | AUGUST 2016
0%
5%
10%
15%
20%
25%
30%
Bali Bangkok Beijing Hanoi Ho Chi Minh
City
Hong Kong Jakarta Kuala Lumpur Singapore Sydney Tokyo
Luxury
Source: STR Global, CBRE Hotels
Room Supply Proposed
SUPPLY GROWTH REGIONAL (4 YEARS) Supply is good for tourism but occupancy may suffer
40 CBRE | HOSPITALITY EVENT | AUGUST 2016
0%
5%
10%
15%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
% Change Visitor Arrivals SINGAPORE Annual Visitor Arrivals
Existing Projected Annual change
Room Supply & Annual Change
Source : STR, CBRE Hotels
VIETNAM
SUPPLY - VIETNAM
Strong growth forecast mainly in resort locations
41 CBRE | HOSPITALITY EVENT | AUGUST 2016
0%
5%
10%
15%
20%
0
2,500
5,000
7,500
10,000
12,500
15,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
% Change Visitor Arrivals SINGAPORE Annual Visitor Arrivals
Existing Proposed Annual change
Room Supply & Annual Change
Source : STR, CBRE Hotels
HANOI
SUPPLY - HANOI
Good occupancy encourages room additions
42 CBRE | HOSPITALITY EVENT | AUGUST 2016
0%
5%
10%
15%
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
% Change Visitor Arrivals SINGAPORE Annual Visitor Arrivals
Existing Proposed Annual change
Room Supply & Annual Change
Source : STR, CBRE Hotels
HO CHI MINH CITY
SUPPLY HO CHI MINH CITY Slower additions will aid hotel performance
43 CBRE | HOSPITALITY EVENT | AUGUST 2016
-20%
-10%
0%
10%
20%
30%
0%
20%
40%
60%
80%
100%
Tokyo Sydney Hong Kong Singapore Hanoi Bangkok Beijing Kuala
Lumpur
Ho Chi Minh
City
Bali Jakarta
Occupancy Annual Change
SINGAPORE Occupancy (Annual) 2015
Source: STR Global, CBRE Hotels
SINGAPORE Occupancy (Annual) 2015
PERFORMANCE REGIONAL OCCUPANCY Bangkok and Hanoi have had the greatest increases
44 CBRE | HOSPITALITY EVENT | AUGUST 2016
PERFORMANCE REGIONAL OCCUPANCY Hanoi and Bangkok at record levels
50%
55%
60%
65%
70%
75%
80%
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16
Ho Chi Minh City Hanoi Bangkok Kuala Lumpur Jakarta Manila
Occupancy (MAT)
Source: STR Global, CBRE Hotels
45 CBRE | HOSPITALITY EVENT | AUGUST 2016
0
50
100
150
200
250
Singapore Hong Kong Sydney Tokyo Bali Ho Chi Minh
City
Hanoi Bangkok Kuala
Lumpur
Beijing Jakarta
ADR (USD) RevPAR (USD)
ADR & RevPAR (Annual) 205 Nov USD
Source: STR Global, CBRE Hotels
ADR & RevPAR (Annual) 2015
PERFORMANCE REGIONAL ROOM RATES AND REVPAR
Two clear leaders
46 CBRE | HOSPITALITY EVENT | AUGUST 2016
PERFORMANCE REGIONAL ROOM RATES ADR a challenge
60
70
80
90
100
110
120
130
140
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16
Ho Chi Minh City Hanoi Bangkok Kuala Lumpur Jakarta Manila
U
United States - Dollar Average Daily Rate (MAT)
Source: STR Global, CBRE Hotels
47 CBRE | HOSPITALITY EVENT | AUGUST 2016
PERFORMANCE REGIONAL REVPAR Hanoi performing well
40
50
60
70
80
90
100
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16
Ho Chi Minh City Hanoi Bangkok Kuala Lumpur Jakarta Manila
United States - Dollar RevPAR (MAT)
Source: STR Global, CBRE Hotels
48 CBRE | HOSPITALITY EVENT | AUGUST 2016
-20%
-10%
0%
10%
20%
30%
ADR (Local Currency % Change) RevPAR (Local Currency % Change)
Changes in ADR and RevPAR in local currencies 2015
PERFORMANCE - REGIONAL Sustainable growth is important
Source: STR Global, CBRE Hotels
49 CBRE | HOSPITALITY EVENT | AUGUST 2016
OCCUPANCY VIETNAM CITIES Hanoi strong growth, HCMC steady
60%
62%
64%
66%
68%
70%
72%
74%
76%
78%
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15
Ho Chi Minh City Hanoi
Occupancy (MAT)
Source: STR Global, CBRE Hotels
50 CBRE | HOSPITALITY EVENT | AUGUST 2016
ROOM RATES VIETNAMESE CITIES Both cities improving
2,000,000
2,200,000
2,400,000
2,600,000
2,800,000
3,000,000
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15
Ho Chi Minh City Hanoi
V
Vietnam - Dong Average Daily Rate (MAT)
Source: STR Global, CBRE Hotels
51 CBRE | HOSPITALITY EVENT | AUGUST 2016
REVPAR - VIETNAMESE CITIES Good growth, especially Hanoi
1,400,000
1,500,000
1,600,000
1,700,000
1,800,000
1,900,000
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15
Ho Chi Minh City Hanoi
Vietnam - Dong RevPAR (MAT)
Source: STR Global, CBRE Hotels
52 CBRE | HOSPITALITY EVENT | AUGUST 2016
HANOI SUMMARY Occupancy over 68% - 70% should push ADR
60%
66%
72%
78%
84%
90%
1,000,000
1,300,000
1,600,000
1,900,000
2,200,000
2,500,000
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15
ADR RevPAR Occupancy
MAT Figures HANOI
Source: STR Global, CBRE Hotels
53 CBRE | HOSPITALITY EVENT | AUGUST 2016
CURRENCY COMPARISON Occupancy needs to improve
60%
62%
64%
66%
68%
70%
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15
ADR RevPAR Occupancy
MAT Figures HO CHI MINH CITY
Source: STR Global, CBRE Hotels
54 CBRE | HOSPITALITY EVENT | AUGUST 2016
HOTEL MARKET OUTLOOK AND PROSPECTS 2016
Market Performance
Investment
Opportunities & Challenges
Visitor Arrivals
55 CBRE | HOSPITALITY EVENT | AUGUST 2016
HOTEL INVESTMENT Active markets in Japan and Australia
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2011 2012 2013 2014 2015
Japan
Australia
Hong Kong
Singapore
China
Malaysia
Thailand
Vietnam
Indonesia
SINGAPORE Total Sales Volume (based on properties & portfolios ~$7.5mil or greater ) USD mil
Source: RCAnalytics
56 CBRE | HOSPITALITY EVENT | AUGUST 2016
HOTEL INVESTMENT
57 CBRE | HOSPITALITY EVENT | AUGUST 2016
HOTEL MARKET OUTLOOK AND PROSPECTS 2016
Market Performance
Investment
Opportunities & Challenges
Visitor Arrivals
58 CBRE | HOSPITALITY EVENT | AUGUST 2016
Liquidity
Yields
Stability
Growth
Ownership
Supply
Distress
Events
International demand
Safety and security
Infrastructure & connectivity
Legal transparency and framework
Land and construction costs
Training for accommodation personnel
Limited financial pressure
Exchange Rates
Repositioning and upgrading
OPPORTUNITIES & CHALLENGES Issues
59 CBRE | HOSPITALITY EVENT | AUGUST 2016
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