CapitaLand Ascott records H1 gross profit of $6.4 mln in Vietnam

CapitaLand Ascott Trust, the management agency of five Somerset hotels in Vietnam, posted a gross profit of VND152.7 billion ($6.43 million) in the first half of 2023 from its Vietnam business, up 47% year-on-year.

According to the Singapore-based firm’s latest report, revenue in the period increased 54% year-on-year to VND308.8 billion ($13 million). Meanwhile, revenue per available unit (REVPAU) jumped 52% year-on-year to VND1.3 million ($54.7) per day.

The firm attributed its revenue growth to stronger demand from leisure and corporate travelers amid the reopening of borders in the post-pandemic era and the acquisition of a property in the northern city of Hai Phong in November 2022. Meanwhile, lower growth in gross profit was due to higher costs related to staff, operations and maintenance, and marketing.

CapitaLand Ascott Trust expected the demand for accommodation to improve in the third quarter of this year as Vietnam has announced the extension of e-visas from 30 to 90 days and a unilateral visa exemption period from 15 to 45 days, starting August 15.

CapitaLand Ascott Trust now manages five hotels in Vietnam, namely Somerset Hoa Binh Hanoi and Somerset Grand Hanoi in the capital city, Somerset Chancellor Court Ho Chi Minh City and Somerset Ho Chi Minh City in the southern economic hub, and Somerset Central TD Haiphong City.

Globally, CapitaLand Ascott Trust’s gross profit for H1/2023 rose 31% year-on-year to SGD154.4 million ($115.1 million), while its revenue went up 30% to SGD346.9 million ($258.6 million). The firm attributed the result to strong operating performance of its properties as travel continued to pick up pace.