Three leading travel agencies in Viet Nam, which own a range of luxury hotels, look set to equitise by the end of next year.

The Sofitel Legend Metropole Hanoi. Hanoitourist has the most luxurious hotel system in the northern region, including Sofitel Legend Metropole Hanoi. — Photo cafef.vn

They are Saigontourist Holding Company, Ben Thanh Group and Hanoitourist Travel Co Ldt.

The three companies are included in the list of 93 State-owned enterprises that were approved for equitisation before the end of 2020 under a decision recently signed by Prime Minister Nguyen Xuan Phuc.

Hanoitourist Corporation was established in 1963 and converted to a limited liability company in 2010. The corporation has 40 affiliated units, member companies, joint stock companies and joint venture companies.

They include Hanoitourist Travel Company, Hanoi Service and Tourism Company and Hanoi Entertainment Service Company, which operates Ha Noi West Lake Park. They also have offices for rent in many prime locations in the capital city.

Notably, Hanoitourist owns the most luxurious hotel system in the Northern region. The company currently holds stakes in five five-star hotels Ha Noi: Sofitel Legend Metropole Hanoi, InterContinental Hanoi Westlake, Pullman Hanoi, Hilton Hanoi Opera and Hotel De L’Opera Hanoi.

It is also stakeholder in some four-star hotels in Ha Noi such as Hanoi hotel, Thang Long Opera Hotel and Hilton Garden Inn Hanoi, and some other big hotels in the provinces of Dien Bien, Quang Binh and Phan Thiet.

Sofitel Legend Metropole Hanoi is the oldest hotel in the capital, built in 1901. The hotel has welcomed many heads of state and was chosen as the venue for the US-North Korea Summit in early 2019. It is currently run by the Metropole Thong Nhat Hotel Joint Venture Company, in which Hanoitourist holds a 50 per cent stake with a value of VND203 billion (US$8.8 million).

Another affiliate of Hanoitourist, Hanoi Toserco, reported profit of VND39 billion in 2018 and currently holds stakes in Pullman Hanoi Hotel and Hanoi hotel.

In the first six months of this year, the average occupancy of the hotels under Hanoitourist’s operation were estimated at relatively high levels, Thang Long Opera hotel was at 71 per cent, Sofitel Legend Metropole 72.6 per cent and Hotel De L'Opera Hanoi 84.4 per cent.

In 2018, Hanoitourist recorded net revenue of VND707 billion, up 26 per cent, but its consolidated after-tax profit was VND225 billion, down 13 per cent. By the end of 2018, Hanoitourist had total assets of VND3.7 trillion, chartered capital of VNĐ2.7 trillion and suffered accumulated losses of VND36 billion.

Saigontourist Holding Company, founded in 1975, also owns a diversified hotel system. It now manages eight travel service companies, 54 hotels, 13 resorts and 28 restaurants. Saigontourist has invested in more than 50 domestic companies and nine foreign-invested joint venture companies.

It has also invested in restaurants (Binh Quoi, Cung Dinh and De Nhất), entertainment (Dam Sen Water Park, Rach Chiet Golf Course), SCTV television and the Saigon Exhibition and Convention Center.

Saigontourist hold stakes in seven five-star hotels in HCM City including Rex Hotel, Majestic, Grand Saigon, Caravelle, New World, Sheraton Saigon and Pullman Saigon Center and one five-star hotel – the Majestic Hotel – in the northern province of Mong Cai. It has also invested in a series of four-star hotels in HCM City, Vung Tau, Nghe An, Quang Binh, Ninh Thuan, Nha Trang, Quy Nhon and Ha Long.

Last year, Saigontourist received 2.92 million visitors, up 14.8 per cent. The average occupancy of its hotels was 68 per cent, up from 64 per cent in 2017. The company recorded revenue of VND6.7 trillion, up 7 per cent year on year, and consolidated after-tax profit of VND983 billion, down 15 per cent.

By the end of 2018, Saigontourist had total assets of VND11.9 trillion, chartered capital of VND7 trillion and undistributed profit of more than VND2 trillion.

Ben Thanh Group, established in December 1997, has invested in 32 member enterprises in four fields including tourism services, trade services, real estate services and industrial production.

Some member companies of Ben Thanh Group include Ben Thanh Jewelry (BTJ-owned Precita), car distribution company Saigon general service corporation (Savico), Hue Travel, Ben Thanh Tourist, Norfolk Mansion and Phu Nhuan Trading Joint Stock Company.

Ben Thanh Group also owns a diverse system of 25 hotels and resorts such as Sofitel Saigon Plaza, Renaissance Riverside Hotel Saigon, Norfolk Hotel, Saigon Quang Binh Hotel and Saigon Ninhchu Hotel & Resort.

Last year, Ben Thanh Group recorded net revenue of VND385 billion, up 62 per cent, but its after-tax profit fell 38 per cent to VND175 billion.

(Source: VNS)