VI
EN
Oakwood Asia Pacific, 49% owned by Mapletree Group, is a leading serviced apartment operator offering four different brands catering to both short-term and long-term stays. Oakwood Apartments is the upper-midscale brand in their portfolio. Oakwood specializes in managing serviced apartments and long-term stays across Asia and Australia.
Located in District 3, Ho Chi Minh City, this serviced apartment project will offer 68 units ranging from studios to two-bedroom apartments. The project provides a variety of amenities including restaurants, a swimming pool, a gym, a sauna, and a bistro, catering to both short-term and long-term guests. Currently in the pre-opening phase, the project is expected to officially open in Q4 2016.
Alternaty represented the Investor in negotiating the commercial terms of the Management Agreement. Mr. Rudolf Hever, CEO of Alternaty, commented: “The Ho Chi Minh City real estate market this year is on an upward trend with positive signs, specifically the rapid development of residential projects. However, the market still lacks well-positioned serviced apartment projects to meet the growing demand from short-term or long-term business travelers as the economy improves. The serviced apartment segment in Vietnam has significant growth potential, and we believe Oakwood Apartments will be an excellent product for families, offering an alternative to traditional hotels.”
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 primarily targeted long-term business travelers seeking more comfort than smaller hotel rooms. However, in recent years, serviced apartment operators have expanded their segment to include short-term guests, with a model similar to hotels. These short-term guests are often willing to pay higher nightly rates, thus providing serviced apartments with better revenue. The key to the success of this model remains controlling operating costs and achieving a Gross Operating Profit (GOP) margin of 65% - 70% to improve the Internal Rate of Return (IRR) for investors.”
alternaty - Alternative Real Estate Service Co.
government:www.alternaty.com
