Hanoi hotel

Sapa hotel, Fire at hotel for foreigners in Hanoi

The fire broke out at the 4th floor of Finegans Hotel, which is dedicated to foreign tenants on Nguyen Huu Huan Street, Hanoi at 2.15pm today.

According to the people living near this hotel, at that time, they saw black smoke rising from the 4th floor of the hotel, which was attached to the fire and explosions.

As soon as detecting the fire, the hotel owner urged visitors to leave the hotel and called fire trucks. After about 20 minutes, two fire trucks arrived at the site.

Fire fighters had to climb to the 3rd floor balcony and then used hoses to put out the fire.

At about 2.45pm, the fire was under control.

According to initial report, there were no people hurt..

The cause of fire is being clarified.

[hotel da nang - nhuminhhotel - 290]

Hotels have less tourists, more competitors The 3-5 star hotels in HCM City rush to lower the hotel room rates and run sale promotion programs amid the modest growth rate in the number of foreign tourists. Meanwhile, they have to compete with apartment developers, who also provide short term accommodations.

The HCM City Department of Culture, Sports and Tourism has estimated that about 246,000 foreign travelers arrived in Vietnam in July and 2.15 million in the first seven months of the year. The figures represent a modest growth rate of 5.5 percent, a lower growth rate in comparison with the same period of the last year.

Since the number of foreign tourists increased more slightly than expected, the hotels in the city had to cut down the hotel room rates and offer preferences to guests.

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  Travel firms have confirmed that the room rate in HCM City has decreased. Especially, hotels have offered big preferences to the travelers from Asian markets. In general, Asian travelers book tours later than European travelers, just some days before the departure time. Therefore, the sale promotion campaigns would show effects immediately in attracting tourists.

According to Bui Viet Thuy Tien, Managing Director of Asian Trails, hotels have offered the discount rates of 5-10 percent on average.

The Q2 report of Savills Vietnam, a real estate consultancy firm, showed that the hotel room rate and the average occupancy rate of the hotels in HCM City has been on the decrease.

The average hotel room rate is VND1.750 million per room per night, down by 12 percent over the same period of 2012, while the average room occupancy rate is 62 percent.

According to Savills Vietnam, the 4-5 star hotels in the center of the city have been operating better than that in other areas, but the 3-star hotels in the other areas have been operating better than that in the central area. In general, the 3-star hotels in the suburbs target domestic travelers and foreign backpackers who prefer saying at cheaper hotel rooms.

Not only does the decrease in the tourist growth rate cause a big headache to hotels, they now also have to deal with another problem – the appearance of new rivals.

In principle, hotels and apartments target two different groups of clients. While hotels provide short term accommodation services, apartments target the clients who plan long term stay. While hotels serve breakfast, the clients staying at apartments dont receive the service.

However, apartment developers now tend to scramble for clients with hotels when offering flexible room rent services.

Capri by Fraser, the apartment building which joined the market in early March, has leased rooms to the clients orders. They can choose long term renting, or rent by days.

Located in Phu My Hung urban area in district 7 in HCM City, the building has 175 apartments for rent at VND1.6 million ($75) per night and VND25 million ($1,200) per month. The above said rates include the fees for the breakfasts. This means that the clients staying at the apartments would receive the same services as if they are in hotels.

Sapa hotel

SSG Group has put the Saigon Airport Plaza building, located near the Tan Son Nhat airport, into operation. This is a complex of apartments and offices for rent, and 84 service apartments.

The rates here are VND25-29 million for a month stay and VND1.4 million for a day stay.

The owners of ten 5-star hotels in Hanoi

Many 5-star hotels in Hanoi are owned by Vietnamese companies although most of them were built with foreign funds.

1. The Intercontinental hotel opened in early December 2007 after a long period of construction and change of owners. This property was built by an investor from Singapore named S. Lien Holdings in 1991.

In 1998, the hotel was half built but due to the impact of the economic crisis in Asia. It was abandoned for seven years. S. Lien Holdings later went bankruptcy. In 2005, Tradewinds Berhad Malaysia took over the project and it joined a JV with a Vietnamese firm - Thang Long GTC. Total investment for the next phase of Intercontinental Hanoi Hotel is $123 million.

Currently, the hotel is owned by Berjaya Berhad Corporation from Malaysia and the State-owned company Thang Long GTC. Berjaya Berhad holds 75 percent of the capital. The group's founder is Mr. Vincent Tan, born in 1952, Chinese descent. In 2010, Vincent Tan was named in the Forbes list of world billionaires with assets of $1.3 billion.

2/ According to the confirmation from the Sheraton Hanoi Hotel, this hotel is owned by the West Lake Company Limited and Berjaya Berhad Corporation. Thus, not only the Hanoi Intercontinental, the 5-star Sheraton hotel is also owned by the Malaysian investor - Vincent Tan.

Before owning a series of luxury hotels in Vietnam, Malaysia and many other countries around the world, Vincent Tan bought a chain of McDonald's restaurants in his homeland in 1981. Four years later, he successfully purchased 70 percent stake of a lottery company in Malaysia and then wholly owned this firm.

3/ Metropole Hanoi was built in 1901 by two French investors and it was the first 5-star hotel in Hanoi. Now the two biggest owners of this hotel are Vinacapital and Hanoi Tourism Corporation (Hanoi Tourist). In particular, Vinacapital holds 50 percent of stake, equivalent to a book value of $58.7 million.

Late last year, this fund decided to sell it shares in the hotel but until now this process has not finished yet. This investment is accounted for 8 percent of the fund's portfolio of Vinacapital Vietnam Opportunity Fund (VOF).

Vinacapitals Chairman is Mr. Andy Ho. Ho was born in 1972, holding an MBA from the University of Massachusetts, USA. Prior to working at Vinacapital, Ho worked for