Vietnam’s Lodgis to Expand Hotel Network, Enter Korea Alongside Hanwha Group

Lodgis Hospitality Holdings on Wednesday announced a tentative agreement with South Korea’s Hanwha Group on development, investment and management of future hotel and resort projects across Asia.

The chief executives of Warburg Pincus-backed Lodgis and Hanwha Hotels & Resorts signed a memorandum of understanding to explore a strategic partnership that would expand Lodgis’s platform, which currently comprises 11 hotels and resorts under ownership and development across Vietnam and Cambodia, with a significant pipeline and land bank for future projects.

Hanwha has identified potential sites in South Korea suited for Lodgis’s entry into the country, the parties said Thursday in a release.

“In addition, as part of this collaboration, Hanwha Hotels & Resorts members can expect to receive various benefits such as discounts on rates at hotels and resorts operated by Lodgis,” they said.

Historic Asian Properties

Founded in 2016 by private equity firm Warburg Pincus, Vietnam-based VinaCapital and VinaCapital founder Don Lam, Lodgis aims to increase the number of keys under its operation to at least 10,000 by 2025.

Singapore-headquartered Lodgis and the Vietnamese government together own Hanoi’s Sofitel Legend Metropole, a luxury property with a French colonial pedigree that hosted the 2019 North Korea-US summit between Kim Jong-un and Donald Trump.

Lodgis is also the majority shareholder in The Grand Ho Tram Strip in Vung Tau, one of Vietnam’s largest integrated resorts. Additionally, Lodgis manages more than 1,950 keys under the Maia Resort, Ixora and Hiive brands in Vietnam and the Glow chain in Thailand.

In 2018, Lodgis acquired a pair of heritage hotels in Cambodia: the Raffles Hotel Le Royal Phnom Penh and the Raffles Grand Hotel d’Angkor Siem Reap, both of which date from the 1930s.

Lodgis set about renovating the 175-room Raffles Le Royal, located near the US Embassy and the Royal Palace in Phnom Penh, and the 119-room Raffles Grand d’Angkor, which occupies a 15 acre (6 hectare) site near the ancient ruins of Angkor Wat in Siem Reap.

Travel Comeback Lifts Lodging

Hotels were Asia Pacific’s best-performing asset class in 2022 as the post-COVID resumption of business travel and tourism pushed investment up 7 percent to $10.1 billion, according to JLL in its latest Asia Pacific Capital Tracker report.

“The hotel sector in Asia Pacific continues to recover on the back of sustained tourism demand in the region, narrowing the gap with pre-pandemic levels,” said Nihat Ercan, head of APAC investment sales for JLL’s hotels and hospitality group. “Investor interest is expected to continue into 2023 in the region despite geopolitical and macroeconomic risks at the forefront.”

The property consultancy expects hotel investment volume in the region to surpass 2022 levels and reach $11.5 billion this year, with Japan as the top target market.