Daiwa House eyes Southeast Asia for extended-stay lodging

Daiwa House

HO CHI MINH CITY — Japan’s Daiwa House Industry will open lodging facilities with hotel-like amenities in Vietnam and other Southeast Asian nations in response to the growing number of Japanese companies dispatching workers there.

The company is discussing construction plans for serviced-apartment complexes with local real estate developers in Vietnam, the Philippines, Thailand and Indonesia. It plans to select locations, primarily in major metropolitan areas, before year’s end.

The apartments will have kitchens and come furnished, with hotel-like services such as housekeeping available for an additional fee. The units will be targeted primarily at renters staying for several weeks to several months. While prices will be higher than the lowest-priced local hotels, Daiwa House aims to achieve high occupancy rates on the strength of the services provided.

The Japanese homebuilder is increasing the number of serviced apartments it manages from around 300 units at present to some 10,000 units by 2022. Much of that growth will come in Southeast Asia, with plans to open five or six complexes annually.

Daiwa House’s intent is to first capture demand from Japanese business travelers, the ranks of which are increasing accompanying Japanese companies’ advances into Southeast Asia, and to also attract business travelers from Europe and the U.S.

Complexes with 200 to 300 units will also have common spaces that include large baths and Japanese restaurants. The front desk will be staffed around the clock, with the locations to hire local employees who have graduated from Japanese-language schools.

The company is aiming for group sales of 3.7 trillion yen ($36.1 billion) in the year ending March 2019, a 16% increase from fiscal 2015. Foreign sales are targeted in excess of 200 billion yen as it focuses on such operations as urban development in the U.S. and China’s high-end residential market.

Source: http://asia.nikkei.com/Business/Companies/Daiwa-House-eyes-Southeast-Asia-for-extended-stay-lodging

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