Nha Trang accommodations offered in droves after Covid-19 blow

A quick search of the popular property listing website Batdongsan.com.vn shows over 400 entries related to hotel sales in Nha Trang, including many two- or three-star hotels with fewer than 50 rooms.

The owner of a hotel in a popular tourist area who did not want to be identified said he was selling his hotel for VND 90 billion (US $ 3.9 million) as it has been selling the most since the Covid-19 pandemic broke out last year Time was closed.

Tien, who owns a 21-story hotel in the coastal city, had borrowed VND 50 billion from the bank to start operating the hotel in the third quarter when the second Covid-19 outbreak hit.

With an absorption rate of less than 10 percent for several months, he sells the property to contain the losses. The hotel, just 100 meters from the beach, has seen its price drop by over 30 percent to around VND 85 billion.

Brokers say hotels selling Spree in Nha Trang started in January with the most popular price range of VND 10 to 30 billion.

Prices have fallen by around 20 to 30 percent since before the pandemic.

In Khanh Hoa Province, where Nha Trang is located, the number of tourists fell by over 80 percent to 1.25 million last year.

Authorities have said that the pandemic has created great difficulties for more than 1,100 shelters. According to the province’s tourism department, around 100 have ceased operations so far.

Phu, a hotel broker in Nha Trang, said the situation was in complete contrast to what happened in 2016-2018 when developers looked for land to build hotels, causing prices to rise.

There are now more hotel sellers than buyers due to the effects of Covid-19, he told local media.

Another seller, unwilling to be identified, said his company has two hotels in Nha Trang and is selling one to make up for losses suffered.

No buyer showed any interest in the 20-story hotel 10 days after it was listed.

Most of the sellers say they can’t take the losses anymore and don’t know when the tourism market will improve.

Phan Viet Hoang, deputy secretary of the Khanh Hoa Association of Real Estate Brokers, said the sales frenzy was inevitable as hotel owners suffer huge losses due to the lack of domestic and foreign tourists.

This will likely lead to a restructuring of the hospitality real estate market in Nha Trang, he said.