Hai Phat Invest is going further into the field of tourism real estate when establishing a company specializing in the management and operation of hotels and resorts.
Hai Phat’s new business strategy for the next five years is based on three pillars of residential real estate, resort real estate and industrial real estate shared by General Director Doan Hoa Thuan at the annual shareholders’ meeting last March.
In the housing sector, Hai Phat Invest focuses on Hanoi, has completed projects such as Tan Tay Do urban area, The Pride, The Vesta and is currently implementing the Roman Plaza project. Besides, through the cooperation with Van Phu Invest, Hai Phat implements some transport infrastructure projects to exchange land for housing and urban development.
In the field of industrial real estate, though no projects have yet been formed, Hai Phat Invest is also preparing a large land fund in Nam Dinh and Thai Binh for future investment.
Particularly in the resort real estate, the management of Hai Phat Invest revealed that the company has been preparing for years before actively seeking and expanding land bank in provinces and cities with potential for tourism development. such as Binh Thuan, Ba Ria – Vung Tau, Khanh Hoa, Can Tho and Phu Yen. Besides, Hai Phat Invest has recently established the 13th member company specializing in hotel and resort management and operation to further penetrate into the field of tourism real estate.
Notably, Hai Phat Invest began to “advance” more strongly into resort real estate in the context of the market has shown signs of cooling down after a hot development period. Supply and liquidity of resort real estate has slowed significantly in recent times due to the absence of a legal framework for the model of hotel apartments, which has discouraged buyers.
While some businesses stop to listen to legal prospects or convert projects into other functions, Hai Phat Invest is one of the “rookies” like Novaland, Van Phu – Invest and Hung Loc Phat, still “attacks” resort real estate.
Explaining the reason why Hai Phat Invest chose the time to step into the field of resort real estate, Ms. Tran Hoai Anh, Deputy General Director of Hai Phat Invest, said that at the early development stage, due to limited resources, businesses only focus on their “core” – housing and urban real estate. However, when there is a basic foundation, inevitably businesses will expand investment, because if businesses only operate in a fixed field, it will be very difficult for them to develop.
Moreover, the current competition in housing real estate is not as easy as the previous period. For a long time, Hai Phat Invest has made provisions and calculations to develop non-residential products, including resort real estate. The company’s leaders recognize that Vietnam’s tourism development potential is still very huge because of only exploiting a small part and in the next 10-20 years, tourism real estate will certainly be very exciting.
According to Ms. Hoai Anh: “When deciding to invest in a resort real estate project, Hai Phat Invest conducts evaluation and consideration based on five factors: land fund, cost of land fund, location, development strategies of national tourism and young population ”.
Hai Phat Invest has also carefully prepared three strategic “cards” before entering the resort real estate market to ensure the success of the projects.
Acknowledging that the development of ordinary resort real estate will face fierce competition due to too many successful projects, Ms. Hoai Anh said, Hai Phat Invest’s projects follow their own way, that is a “resort property” rather than a resort like the projects on the market.
More specifically, since most of the resort real estate projects are currently developed on commercial land – the service has a limited time of ownership, so it is not issued a long-term ownership certificate, causing concern for investors. Therefore, Hai Phat Invest will overcome the legal limitations of resort real estate by offering products with long-term ownership.
For example, the first resort real estate project of Hai Phat Invest is in Phu Hai (Binh Thuan province), which is about to be launched in the near future, which will be developed under the model of “sea urban”. The project is built on residential land with long-term use rights, red books for investors but operated for the purpose of resort accommodation.
Ms. Hoai Anh emphasized that the introduction of legal resort products will create peace of mind for investors and this is also a new direction for Hai Phat Invest’s projects to compete on the market which is “hundreds of flowers in bloom”.
The second difference of the resort real estate projects is developed by Hai Phat Invest, which Ms. Hoai Anh pointed out, is the operation management.While some investors choose to develop and sell the project, the operational management is handed over to an outside company, Hai Phat Invest will build a closed chain from construction to transport management. It aims to create a stable cash flow for investors.
Therefore, apart from preparing land fund, Hai Phat Invest has just established IWG Hotel and Resort Joint Stock Company to manage and operate its own projects. IWG’s main shareholders besides Hai Phat Invest also have STS Hospitality, holding 44%. This business has experience in hotel management, including consulting construction and operating of a number of projects such as The Festa Hoi An, The Festa Cam Ranh, Sunrise Nha Trang Hotel, Sunrise Hoi An Resort and Vedana Ninh. Binh Resort.
Ms. Hoai Anh acknowledged that self-operation management will pose initial challenges for businesses but everything has two sides, besides difficulties will be opportunities. If there is only one resort project, surely businesses will use foreign brands to “push it away, get it fast” but Hai Phat Invest’s orientation is to develop long-term resort real estate, creating a ecosystem of products, so developing your own operation management unit will be a sustainable and long-term direction.
“Vietnam is a developing country, at some time we will need our own domestic things. Domestic enterprises can do and do this well, why depending on things that appear to be flashy, while they are not good for long-term development of enterprises. Hoai Anh, who is also appointed IWG Chairwoman, emphasized.
The third difference in Hai Phat Invest’s resort real estate projects is the focus on developing projects in emerging tourism markets such as Binh Thuan, Ba Ria – Vung Tau, Can Tho and Phu Yen. As Hoai Anh said, “emerging lands have chance for us”.
Developed tourism real estate markets still apparently attract investors but land prices are currently very high. Consequently, the total value of investment on real estate products is high, reducing investment efficiency and the customers’ finance capability.
Therefore, Hai Phat Invest selected localities with great potential for tourism but not many businesses participated. There, the competitiveness in the market is still low, the investment opportunities for investors are also therefore more secure than other markets, Ms. Hoai Anh shared.