Do Ngoc Nam – Developing serviced apartment building in Hanoi

MMSS Intake 10th

2015-2017

Develop Service Apartment Building for Foreign Experts in

HanoiThe Consultancy Project Defense

(Hanoi, March 2017)Defendant: Do Ngoc Nam

Tutor: Pr. Jean-Piere Helfer

Do Ngoc Nam – Developing serviced apartment building in Hanoi

ACKNOWLEDGMENT- My dear Tutor - My dear Family

- My Colleagues - CVFG & MMSS

Do Ngoc Nam – Developing serviced apartment building in Hanoi

SA definition:•A serviced apartment is a fully furnished apartment available for both short-term as well as long-term stays, providing all the hotel-like amenities•A "serviced apartment" is any size space for residential living which includes regular maid and cleaning services provided by the rental agent.• Serviced apartments or serviced flats developed in the early part of the 20th century and were briefly fashionable in the 1920s and 30s. •They are intended to combine the best features of luxury and self-contained apartments, often being an adjunct of a hotel. Like guests semi-permanently installed in a luxury hotel, residents could enjoy the additional facilities such as house keeping, laundry, catering and other services if and when desired.

SA ‘s KSFBig Apartments- usually have kitchens, living rooms, far more suitable for long term stay.Less cost- Whole families can stay together in service apartments without paying extra per head.Cook Own Food- Well equipped kitchens in apartments allow one to have home cooked food.Flexibility- relaxed check-in times, free cancellation or extra beds.Monthly rates- Most service apartments offer steep discounts for long term stays.Personal- SA they are frequently smaller than Hotels, have a direct oversight of the management.

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Literature review

Do Ngoc Nam – Developing serviced apartment building in Hanoi

SA investment consideration:

SA in comparison with key competitor: Hotel

Statement

Performance measurement criteria Serviced apartments Hotels

Occupancy (%) 80% 60%

Average Daily Rate (ADR) 4,800 9,000

Revenue per available room (RevPar) 3,840 5,850

Operating expenses 40% 70%

Do Ngoc Nam – Developing serviced apartment building in Hanoi

Local situation: Hanoi capital of Vietnam•Less new supplier•2017 will be busy year

Statement

Do Ngoc Nam – Developing serviced apartment building in Hanoi

SA in Hanoi

Statement

Do Ngoc Nam – Developing serviced apartment building in Hanoi

Data collection•Secondary Data• Primary DataSurvey•Qualitative Method: Questionnaire•Quantitative Survey: InterviewScope of Area: 5 main districts of HN which concentrate SA buildings

Scope of time: 2 months: January and February

Methodology

Do Ngoc Nam – Developing serviced apartment building in Hanoi

Methodology

Do Ngoc Nam – Developing serviced apartment building in Hanoi

Analysis

Do Ngoc Nam – Developing serviced apartment building in Hanoi

Analysis

Marketing

Do Ngoc Nam – Developing serviced apartment building in Hanoi

AnalysisLocation & Facilities

Do Ngoc Nam – Developing serviced apartment building in Hanoi

Analysis

Interview Result We are using facebook, but not enough to be worth the costMost clients for new SA buildings come from OTAFor 2-3 years, the WOM will be much more significant because of saving the costs for finding clientE-marketing help to provide the relating information such as map, picture, size and contact, but more important is the direct sales.

Do Ngoc Nam – Developing serviced apartment building in Hanoi

Conclusion

Finding

Do Ngoc Nam – Developing serviced apartment building in Hanoi

Conclusion

Do Ngoc Nam – Developing serviced apartment building in Hanoi