Vietnam: Three Pillars of the Gambling Business - Grand Ho Tram, Part II The Grand Plan and the Expats

Grand Ho Tram boasts its premium Korean restaurant, offering South Korean gamers the pleasure of golfing at the exclusive Top 100 Golf Course, The Bluffs, designed by Greg Norman. Stretching 2 kilometers along the stunning tropical beach, Grand Ho Tram comprises three hotels, each with 1,314 rooms, featuring spa centers, water sports access, and children's clubs. Partnering with ITO, the resort provides VIP offerings worth over $1 billion annually. However, CEO Walt Power emphasizes a different primary audience.

"I've always believed that any successful gambling business has local people as its core customers," says Power. "Our main target audience is foreign passport holders living and working in Ho Chi Minh City."

Conveniently located just two hours south of Ho Chi Minh City, The Grand's proximity to the city of 15 million inhabitants is a key factor in the resort's success. While Saigon boasts the largest concentration of wealthy expats in the country, the only challenge lies in the lengthy road journey from Ho Chi Minh City airport, affecting accessibility for foreign guests.

Walt Power, the Senior Vice President of Macau Operations for Las Vegas Sands, arrived at The Grand in early 2020. Unfortunately, international travel restrictions due to the pandemic shifted the team's focus to the local expat market. Power notes, "Ho Tram’s current numbers are several times higher than 2019."

Grand Ho Tram - Eventful Venue

As global pandemic restrictions gradually ease, the task is to persuade expats to choose The Grand over other casino resorts when considering travel, as highlighted by Power. An effective strategy for attracting and retaining customers involves hosting vibrant and successful events. 

According to Power, "International professional boxing, mixed martial arts competitions, VIP banquets, beauty pageants, golf tournaments, and, yes, even horse racing on the beach position The Grand as a place where there is always something going on." 

In 2019, the private equity group Warburg Pincus, in collaboration with VinaCapital, acquired The Grand Ho Tram. Power emphasizes the critical role of this combined partnership, stating, "The ability to adopt a long-term strategy to increase the value of an investment is a must."

Grand Expansion

Under new ownership, IHG Hotels and Resorts entered the scene, undertaking the renovation and rebranding of an exclusive multi-storey hotel conceptualized by Paul Stillman. Originally opened in 2013 as the InterContinental Grand Ho Tram, boasting 543 rooms, IHG marked the beginning of 2022 with the unveiling of its highly anticipated second high-rise structure—the Holiday Inn Resort, featuring 561 family-friendly rooms, a first of its kind in Vietnam.

Ixora, introduced in August, complements the Grand with 46 villas and 164 rooms, a venture crafted by the Warburg-VinaCapital partnership and overseen by the wellness-focused Fusion group. These properties, available for investment and guest rentals, add diversity to accommodation options while providing returns to owners, contributing to the considerable investment, notably in securing a gaming license.

Equipped with 90 gaming tables and just under 500 slots and terminals for live multi-games, the Grand caters to enthusiasts dealing in US dollars. Amidst emerging competitors, gaming clubs in Ho Chi Minh City prompt the Grand to introduce new EGMs. Approximately half of the gaming tables reside on the primary floor, with varying minimum and maximum bets. Baccarat tables feature minimum bets of $100 and $200, with maximum bets soaring to $50,000. Blackjack and poker options against the house commence at $25, while roulette starts at $10.

VIP rooms host ITOs, where fees and interest rates slightly surpass those in Macau. The Grand strategically employs marketing teams from Korea and, since August, Taiwan, with a significant influx of casino games originating from Korea. Power notes, "The demographics of our guests reflect the sources of FDI (foreign direct investment) in southern Vietnam. Given our focus on language, food, and other cultural requirements of our loyal guests, we are well positioned to entertain, attract, and retain international gamers."