Lodgis Hospitality investment to drive ACDL and Ho Tram Strip to new heights

March 10, 2021 | 08:00
In recent years, Ho Tram has emerged as one of the most attractive Vietnamese tourist destinations. One of the high-profile developers in this fast emerging market is Asian Coast Development (ACDL) which controls the 164-hectare Ho Tram Strip integrated resort.

Set between Long Hai and Binh Chau, Ho Tram boasts 30 kilometers of surf and sand along a scenic coastal road. Surrounded by a large primeval forest and the Ray River, Ho Tram is one of the area’s most attractive destinations, offering an all-year-round summer climate of sunny days and comfortable nights. Ho Tram is fast becoming a favoured getaway to escape the noisy and bustling city life and bask in the view of its broad beaches, waterscape, and quiet blue sky.

lodgis hospitality investment to drive acdl and ho tram strip to new heights
Ho Tram Beach at dawn

In 2019, Ba Ria-Vung Tau welcomed nearly 16 million visitors, almost twice as many as the 6.4-8.7 million travellers in Phan Thiet, Nha Trang, Danang, and Phu Quoc. Moreover, Ba Ria - Vung Tau has smaller room capacity, with some 10,000 hotel rooms compared with the approximately 40,000 in Danang, 49,000 in Nha Trang, and 18,000 in Phu Quoc.

Especially, Ho Tram (Xuyen Moc district) has been recorded to have the highest occupancy rates in Ba Ria-Vung Tau province. According to a 2019 report by the Department of Culture and Information, Xuyen Moc District’s total tourism revenue was more than VND1.84 trillion ($80 million). In addition, figures from Savills Hotels show that with less than 3,000 keys, Ho Tram was the first to rebound from the COVID-19 outbreak. Ho Tram’s occupancy rates are as high as the 80s, percentage-wise, during the weekends.

With the shift to drive-to destinations following the fallout from COVID-19, Ho Tram is now one of Vietnam’s most popular coastal destinations, surpassing Phu Quoc and Danang – the most popular destinations pre-pandemic. At less than a two-hour drive from Ho Chi Minh City, Ho Tram receives the largest number of tourists from the east and south-west of Vietnam.

Trinh Hang, director of Ba Ria-Vung Tau Department of Tourism, affirmed that Ho Tram has the base resources to become a national resort destination. According to the 2020-2030 land-use plan, up to 5,000ha of land will be dedicated to the development of resort and entertainment areas.

Ho Tram and its key advantages

In recent years, the infrastructure in Ba Ria-Vung Tau has been improving at a tremendous pace, backed by a number of key national projects. These include highways, airport, seaports, railway, and a 42m-expansion of the Vung Tai-Xuyen Moc coastal route. These key infrastructure projects will greatly enhance connectivity between the Southern Key Economic Region and Ho Tram.

According to the government planning, Ba Ria-Vung Tau will also extend Long Thanh-Ben Luc Expressway to connect the western regions with Dong Nai and Ba Ria-Vung Tau. Moreover, Cat Lai Bridge will also be opened to serve as a key link between Ho Chi Minh City and Ba Ria-Vung Tau.

In addition, Bien Hoa-Long Thanh International Airport-Vung Tau Expressway and a cross-sea tunnel will ultimately link Can Gio-Vung Tau to alleviate traffic congestions. Finally, the new Long Thanh International Airport will be capable of handling up to 100 million passengers a year, further enhancing Ho Tram’s connectivity.

Given its easy access from Ho Chi Minh City, Ho Tram has become a popular local tourist destination – and a popular weekend escape for families looking for a place that offers something for everyone. Compared to Danang, Nha Trang, or Phu Quoc, being accessible by car makes Ho Tram an easy and cost-effective alternative. Being a convenient and safer option is especially attractive during these pandemic times.

In particular, with a population of 16 million and impressive per capita income growth from $5,400 in 2016 to $7,500 in 2020, Ho Chi Minh City is a huge source market to drive tourism in Ho Tram and once Long Thanh International Airport is in operation, the number of national and international travelers is also expected to substantially increase.

Lodgis Hospitality puts ACDL back in the competition

Lodgis Hospitality is the investment partnership between the leading global private equity firm Warburg Pincus and one of Vietnam’s largest investment managers, VinaCapital. Lodgis has taken majority control over ACDL and its subsidiary Ho Tram Project Co., Ltd.

Ho Tram Project Co., Ltd.’s development and operation expertise will fully realize Ho Tram’s inherent potential through its project Ho Tram Strip complex. With such strong sponsorship and plans for further significant capital investment from Lodgis, Ho Tram Project Co., Ltd. and its Ho Tram Strip are poised to expand exponentially. There is tremendous opportunity through the continued expansion of the Ho Tram Strip integrated resort complex. With a land area of 164 hectares, the condotels, villas, hotels, golf course, entertainment facilities, and the casino create a destination that is truly distinct in Vietnam.

lodgis hospitality investment to drive acdl and ho tram strip to new heights
Ho Tram Strip is expected to be developed into an iconic tourist destination in the region

The newest component project in Ho Tram Strip is Ixora Ho Tram by Fusion.With 164 condotels and 46 luxury villas, the project will sprawl across the beach with high-quality facilities and impressive design. This project represents an interesting investment opportunity, and will be an attractive alternative for visitors to Ho Tram.

The project is currently under construction by lead contractor Coteccons and Fusion Hotel Group – Lodgis’ wholly-owned hotel management company – will act as the project operation brand, providing management and design consultancy services across a suite of brands.

Christopher Y. Hur, CIO of Lodgis Hospitality Holdings commented that, “Vietnam has tremendous potential to be a globally leading tourism destination, and Ho Tram is among the country’s most exciting markets. With proximity to Ho Chi Minh City, Ho Tram has a great beach coastline along with our established Ho Tram Strip integrated resort. It is the Ho Tram Strip that anchors this destination, differentiating the area from the rest of the country. Our strategy is to further expand Ho Tram Strip into not only the country’s best fully-integrated resort but of a globally competitive facility of world-class scale and quality. Based on the current development interest in Ho Tram, it is a very exciting place to be both in the short and long-term.”

By Gia Lai

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