Love Hotels boost real estate market recovery

One of the models that the two parties will offer is a chain of love hotels, which is considered a new breeze to wake up the hibernating real estate market.

According to an analysis by Boston Consulting Group, the value of Vietnam's hotel market in 2025 is estimated to reach $11 billion, with demand for 39,000 additional rooms in the 3-star or lower segment by this period.

Among the mid-range accommodation models, the romantic-themed hotel model stands out with the highest operating capacity and greatest demand. In the Japanese market, love hotels are an industry worth up to $40 billion, with about 37,000 of them across the country, according to The Japan Times.

Assessing the potential of this model, the YLY team researched and built a hotel inspired by romantic stories, focusing on enhancing personal experiences through designs with culturally rich interiors. YLY Boutique is a themed love hotel chain, on a mission to change the face of this hotel segment in the Vietnamese market.

With this business model, YLY can now cooperate with many real estate owners to appropriately transform the use of their properties. Normally, it takes six months for the construction and design of each property according to YLY's model, and the group also commits to operating the hotel under an uninterrupted 10-year contract with the property owner.

Nguyen Thi Thu Ha, founder and general director of YLY Group said, "YLY Boutique was built as an effective solution to transform low-rise real estate properties that are in a state of hibernation into profitable ventures. This approach solves the common difficulties in the current Vietnamese market, and at the same time opens up a potential business direction by focusing on exploiting the love hotel segment."

In addition to the YLY Boutique-themed love hotel chain, YLY Group is also developing accommodation services for couples, such as the YLY Escape love homestay system, the YLY Suites high-class love accommodation service system, and LivinJoy, which are serviced apartments for young people.

It is expected that by 2030, YLY will reach 1,800 rooms in key cities and provinces in Vietnam.

Meet the Experts reenergises hospitality and real estate market The recovery path of the real estate and hospitality sector has turned out to be more challenging than initially expected, marked by an ever-changing landscape.

Resort real estate struggles to achieve lift off in fickle market Although the real estate market has continuously received positive policies from the government to remove obstacles, resort real estate has suffered hugely in recent years and is showing little sign of recovery, with many properties unfinished and unused.

Another push for real estate bounce Vietnam’s government aims to boost its real estate sector by easing bank credit and tackling legal, land, and administrative hurdles to foster market growth.

Investment opportunities open in Vietnam's green real estate market As Vietnam continues to undergo rapid urbanisation, underpinned by economic growth and an expanding middle class, coupled with the improvement in infrastructure networks, the country continues to offer tremendous opportunities for investors, according to Wong Wai Foo, head of Sustainable Urban Renewal in Vietnam, Keppel Corporation, at the Sustainable Development 2023 conference held by Vietnam Investment Review on November 16.