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PROPERTY

PHOTO: VIET TUAN

Battered but unbowed

Serviced apartments took a major hit from Covid-19
but recover plans are in place.
T NGOC LAN rEPOrTS

oasting a prime location in an upscale had to return home or cannot return, while Our plan in 2021 is to maintain our existing
residential neighborhood in Hanoi’s some have had to remain in Vietnam longer guests and seek more domestically and inter-
B Tay Ho district, Oakwood Residence than anticipated and have extended their nationally, especially those from Japan, South
Hanoi is a new entrant in the serviced apart- stays. “Our targeted tenants are diplomats Korea, and other Asian countries.”
ment segment and Oakwood’s first project in and others staying in Vietnam for a long Similarly, serviced apartment projects of
the capital. When it opened at the end of period or those in comparable apartments The Ascott have remained resilient, with a
2019 - a peak period for tourism - it hoped to looking to move,” Ms. Chieu said. “Some steady base of long-stay guests including expa-
welcome growing numbers of guests and domestic airlines have leasing contracts with triates and corporate guests extending their
post occupancy of more than 60 per cent in foreign carriers, and have a large number of stays due to travel restrictions. “We also tapped
its first year. However, as Ms. Nguyen Thi customers who need our services. In terms into domestic demand and targeted local
My Chieu, Business Director at Oakwood of operations, Oakwood Residence Hanoi is guests on staycations,” said Ms. Lew Yen Ping,
Residence Hanoi, told VET, Covid-19 hit just a new building so its equipment and machinery Regional General Manager, Vietnam, Cambodia
three months after it opened its doors, with are still within warranty, meaning operations and Myanmar, at The Ascott Limited.
international flights soon cancelled. Occupancy are not such a problem.” Fraser Suites Hanoi, meanwhile, were
struggled to reach 30 per cent, less than half Amid Covid-19, Landmark Serviced Apart- happy to have continued operations and
of expectations, despite their best efforts. “It ments’ business was maintained thanks to remained open throughout the pandemic,
didn’t go as we thought, but compared to long-term guests from Japan, South Korea, and feel encouraged by guests extending their
other hotels in the city our results were not and Taiwan (China). Ms. Hanh Phung, Mar- stays. Ms. Sandy Ng, General Manager, said
that bad,” Ms. Chieu said. Oakwood’s case keting & Leasing Manager at The Landmark, their occupancy remains healthy at an average
was somewhat symbolic of the serviced apart- told VET that having fewer residential guests of 83 per cent and room rates have remained
ment market over the last year. affected their revenue in 2020. “Occupancy largely unchanged. “We kept our doors open
was down 30 per cent compared to previous to guests throughout Covid-19, redefining
Not all bad years despite us being more flexible with our and adopting new hospitality standards into
Oakwood Residence Hanoi has a large rates during the pandemic,” she said. “For- our operations,” she added. “The pandemic
number of long-term foreign tenants who tunately, we still have our long-term guests. gave us the opportunity to re-look and re-

44 | VIETNAM ECONOMIC TIMES | FEBRUARY 2021