Vietnam has solidified its position as a premier gambling and entertainment destination with the acquisition of three top-tier integrated resorts (IRs). Among them, Hoiana stands out as the newest resort, perched high in the mountains, ready to elevate visitors' experiences. The Grand Ho Tram, Vietnam's first IR, aims to ground travelers, while Corona on Phu Quoc Island uniquely allows gamers to indulge without stringent document requirements.
Each of these beachfront establishments boasts distinctive features, positioning themselves as lucrative ventures amidst the challenges of reduced tourist influx from mainland China. The pivotal question remains: will these three premium land-based casinos transform Vietnam into a more appealing gaming destination for users, operators, and investors?
Hoiana IR's Journey
Hoiana boldly opened its doors in June 2020, navigating the tumultuous waves of the coronavirus pandemic. The resort, led by President and CEO Steve Wolstenholme, faced challenging months that he aptly described as "character-building." Despite reduced operating hours and staffing, both Hoiana and Grand Ho Tram persevered.
However, the true test for Hoiana came in November 2021 when Macau authorities arrested Alvin Chau, chairman of junket promoter Suncity Group and a significant 34% partner in Hoiana. Chau was a driving force behind the establishment's initial business plan, focusing on mainland Chinese high rollers. His arrest signaled Beijing's intolerance towards junkets involved in illegal fund outflows from China.
In response, Hoiana terminated its management agreement with Suncity Casino and took control of gaming operations. Ben Lee, Managing Partner of iGamiX Management & Consulting, commended Hoiana's management for successfully rebuilding the business model amid these challenges.
LET, the remaining partner in Hoiana, has acquired Suncity's stake, and LET's Chairman, Andrew Lo, now sits on Hoiana'sboard of directors. With LET's stake in Hoiana potentially up for sale, as indicated by the upcoming sale of their stake in Russia's Tigre de Cristal and the opening of the Westside City casino hotel in Manila later this year, LET remains open to exploring strategic options.
Evolution of the Ownership Structure
"The ownership structure is undergoing significant changes," notes Wolstenholme. Originally led by Genting, Hoiana'spredominant control now lies with Hong Kong billionaire Henry Cheng and his family, renowned for their diverse business empire, including the New World conglomerate, Chow Tai Fookjewelry company, and the Rosewood Hotel Group (with plans for Hoiana Rosewood). Additionally, the Cheng family holds a strategic stake in the Australian gambling operator Star Entertainment. Vietnam-focused investment manager VinaCapital has also invested in both Hoiana and The Grand Ho Tram.
The initial phase of Hoiana, with an investment of $1.3 billion, boasts four hotels featuring 1,225 rooms, a golf course, and 20 dining establishments along a scenic four-kilometer beachfront. Describing the property as an outstanding location for a tropical resort, Lee emphasizes its allure.
The casino, exclusively catering to foreign passport holders, offers 140 tables and 300 slot machines, with a predominant focus on baccarat, blackjack, roulette, and sic bo. Notably, there is no provision for a stadium, poker, craps, with an emphasis on the popular games among their target audience. According to Wolstenholme, the gaming offerings align with the preferences of their desired clientele.
Table game limits start from $25, while baccarat with squeeze begins at $100. VIP rooms, situated on the main floor and one level above, operate in Hong Kong dollars, with a squeeze baccarat minimum of 1,000 Hong Kong dollars ($128). The VIP segment is serviced by International Tour Operators (ITOs), commonly known as junket promoters in Vietnamese parlance.
Donga Game
A distinctive feature at Hoiana is the availability of several baccarat tables on the main floor that accept bets in Vietnamese dong. This feature caters to customers with foreign passports who may find it more convenient to bet in the local currency, as explained by Wolstenholme.
Offering modern comfort in rooms and high-quality service, Hoiana seamlessly combines the relaxed atmosphere of a beach holiday with the premium amenities of a five-star hotel. With extensive experience, including the opening of Okada Manila hotel and extensive work in North America, Wolstenholme anticipates Hoiana to be highly popular, expecting guests to travel from afar to experience its offerings.
Dining options by the pool include The Edge's breakfast buffet and afternoon cocktails atop the Hoiana Hotel and Suites, as well as kebabs and steaks at the New World Beach Hotel's Charred restaurant. The Downtime Renew Spa offers Japanese shower stools, a hot tub, and a sauna, providing guests with a luxurious experience before or after treatments. Quang Nam House serves as a versatile ultra-lounge for business meetings during the day and a relaxation spot after dark. Notably, Hoianaboasts one of the largest and most well-equipped kids' clubs in Asia, featuring pottery wheels, weaving looms, two playgrounds, and a kitchen for cooking classes.
Hoiana encourages guests to embrace the entire experience, both within and outside the resort. Wolstenholme emphasizes the desire for people to immerse themselves in the charm of central Vietnam, highlighting the resort as a gateway to the region's unique allure.
The Beauty Of The River Bank
Situated just a 15-minute drive from the ancient city of Hoi An, listed in the UNESCO World Heritage List, Hotel IK enjoys proximity to a well-preserved port area from the 1400s. This historic locale features river boats, vibrant lanterns, and centuries-old buildings where people continue to live, work, and partake in religious ceremonies. On the opposite bank of the river lies the bustling center of nightlife, reminiscent of Singapore's Clarke Quay.
Approximately an hour's drive away is the UNESCO-listed My Son Sanctuary, showcasing restored buildings from the ChampaKingdom, a Hindu civilization that governed central Vietnam for a millennium starting from the 4th century. Adorned with orange brick structures, these buildings boast sandstone carvings depicting deities like Shiva.
Among the city's UNESCO-listed attractions are Chu Lao Cham Marine Park, visible from Hoi An, and the ancient capital of Hue to the north. The proximity of Da Nang International Airport, just 45 minutes from Hoi An, along with kilometers of pristine beaches, has contributed to a well-developed tourism infrastructure, featuring over 50,000 guest rooms across hotels of various levels.
While the Crown International casino continues to operate in Da Nang, and various gaming clubs can be found in hotels, Wolstenholme identifies other Asian integrated resort (IR) destinations like Macau, Singapore, and the Philippines as Hoi An's main competitors. He emphasizes that the competition isn't solely based on casino scale but rather on the unique products each destination can offer, forming the foundation of their competitive edge.
Hoiana Shores Golf Club
A standout feature at Hoiana is the Hoiana Shores Golf Club, exemplifying the uniqueness of Vietnam's offerings. Designed by Robert Trent Jones Jr., the 7,004-yard golf course has earned the prestigious recognition of being named one of the World's 100 Best Courses. Its scenic backdrop wraps around the shoreline, providing a breath-taking setting for golf enthusiasts. The club's state-of-the-art clubhouse includes a golf instruction studio, adding to the overall golfing experience.
The international appeal of the golf club is evident, with a significant number of overseas visitors hailing mainly from Korea. These visitors, whether traveling independently or as part of group tours, often choose Hoiana for its exceptional golf offerings. To cater to this demographic, the club's restaurant, 1552 Bistro, specializes in Korean cuisine. Additionally, a branch of Seoul's renowned Obaltan restaurant is conveniently situated in the hotel-casino towers, enhancing the overall experience for visitors from Korea.
