TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Vietnam Condotel Guaranteed Return Default Shakes Industry

Category: Real estate, Posted:18 Dec 2019 | 06:00 am

What has long been predicted in Vietnam’s amped up condotel industry as unsustainable guaranteed returns has come home to roost.

Making news is the massive Cocobay project in Danang, who’s developer the Empire Group has reportedly stopped making guaranteed return payments to owners.

The knock-on effect of this has been on buyers who in turn have been unable to make mortgage payments to banks.

Given the scale of many Vietnam condotel project’s where units number in the thousands, expectations in the industry are for further pain in the sector where unsustainable double-digit returns have been promised to attract buyers.

In Phuket, over 50% of the incoming hotel supply currently rests in hotel residence offerings with many projects offering high-levels of guaranteed returns.

Thailand currently does not regulate the development practice despite growing calls for oversight.

 

Other News

Read more

Project Rattan Focused On Restoring Thai Craft

Category: Tourism, Posted:20 Sep 2020 | 08:52 am If you find yourself in Bangkok from now until the end of December, you should take some time and visit Australian designer Patrick Keane’s Project Rattan exhibition at River City. Project Rattan is an exhibition of furniture design featuring Thai craftsmanship and aimed at restoring local artisans to create international level products. The exhibit is […]
Read more

Condo Hotels and TPO’s Hitting Bangkok

Category: Hotels, Posted:20 Sep 2020 | 08:47 am Bangkok’s hospitality market is set rapid growth in the emergence of condo hotels and third party management operators (TPO’s). The trend is best seen with the recent launch of The Wyndham Queen Convention Centre Hotel and Residences in Bangkok operated by Kew Green Management Company Thailand. Kew Green has seven properties in the pipeline in […]
Read more

The Hotel Business Plan – Why It Must Die (and soon)

Category: Opinion, Posted:18 Sep 2020 | 17:26 pm As I madly type away on the keyboard of my MacBook Pro, thousands of dumbstruck hoteliers across the world are slaving away in a blurring succession of days and nights in the mindless pursuit of completing an ignominious document known as The Hotel Business Plan. It’s Friday and I’m over-caffeinated, so hang on tight. Wait, […]