Oakwood Asia Pacific, 49% owned by Mapletree, is a leading serviced apartment operator offering four distinct brands catering to short-term and long-term guests. Oakwood Apartments is the upper midscale brand within their portfolio. Oakwood manages serviced apartments and long-term stay properties across Asia and Australia.
The serviced apartment project located in District 3, Ho Chi Minh City, will provide 68 apartments ranging from studio to 2-bedroom apartments. The project offers a variety of facilities such as: Restaurant, swimming pool, gym, sauna, bistro, targeting both short-term and long-term guests. Currently, the project is in the pre-opening stage and is expected to officially come into operation in Q4 2016.
Alternaty represented the Developer in the negotiation of the commercial terms of the Management Agreement. Mr. Rudolf Hever, CEO of Alternaty Company commented: “The real estate market in Ho Chi Minh City this year is on the rise with positive signs, specifically residential projects being rapidly implemented. However, the market still lacks well-positioned serviced apartment projects to meet the needs of short-term guests or long-term business guests, which continue to grow as the economy gradually improves. The serviced apartment segment in Vietnam has the potential to develop and we believe that Oakwood Apartments will be a great product for families, replacing the traditional hotel model”.
Mr. Mauro Gasparotti also shared that Serviced Apartments are an extremely attractive business model, as they are less affected by the typical business fluctuations of the traditional hotel model. "In previous years, serviced apartments mainly targeted long-term business customers looking for more comfort than small hotel rooms. However, in recent years, serviced apartment operators have expanded their segment to short-term customers, with a model similar to hotels. Short-term customers are often willing to pay higher nightly room rates, thereby providing serviced apartments with a better source of revenue. The key factor for the success of this model is still controlling operating costs, and being able to achieve a Gross Operating Profit (GOP) margin of 65% - 70% to increase the Internal Rate of Return (IRR) for investors."
alternaty - Alternative Real Estate Service Co.
Website:www.alternaty.com
