Wednesday, November 9, 2011

Hotel management turns overheated | Look At Vietnam - Vietnam news daily update

Hotel management turns overheated

November 10, 2011 about News, Travel



A glimpse at the country’s hospitality industry will reveal not only the fast development of infrastructure facilities, but also the bustling competition among big international brands in hotel management.
As renowned international hotel management firms are vying with one another for a bigger share in the local market, local owners of hotels are standing for much better benefits, from professional services to lower management fee and thus higher profits.
Accor, for instance, is planning to expand its presence on the local market in the next two years by doubling the number of 500 hotel rooms currently under the Novotel brand. As planned, the leading hotel management group in Vietnam in terms of the number of hotel rooms will expand the brand in Danang, Phu Quoc and Hanoi in the coming time, besides some existing Novotel hotels located in Ha Long, Nha Trang and Phan Thiet.
Faster pace
Like Accor, other international hotel brands big and small alike are making great efforts in the race to increase their shares in the domestic market as much as possible.
Despite the current global economic crisis, the local hotel management segment has continued luring investments from foreign hotel service suppliers, helping local investors enjoy a much lower management fee accordingly.
InterContinental Hotel Group (IHG), well-known for its InterContinental and Crowne Plaza brands in Hanoi and HCMC, has built one more Crowne Plaza and developed Holiday Inn in Danang. Similarly, Starwood Hotels and Resort Worldwide, Inc. has approached the local market with its two more brands, namely Le Meridien and Westin, following the establishment of Sheraton hotels in HCMC, Nha Trang and Hanoi.
Not only existing groups but new rivals have also tried to penetrate the domestic market, such as BestWestern or Zinc Vision.



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