The luxury resort market in Vietnam is shifting from a competition of quantity to one focused on offering irreplaceable experiences. Amanoi has announced plans to invest 800 billion dong (approximately $43.9 million) to add 10 new rooms, raising questions about whether an investment of 80 billion dong (about $4.4 million) per room is justified. Unlike typical resorts that increase room numbers to boost profitability, luxury resorts are expanding their market by emphasizing scarcity, privacy, environmental preservation, and cultural richness.
According to local media reports on July 30, Luc Van Nerom, co-founder of Amanoi, revealed plans to invest 800 billion dong in the Amanoi Resort, located in the Vinh Hy Bay area of Khanh Hoa Province, known to Koreans as Nha Trang. He acknowledged that the average investment per room is quite high, describing it as a "very significant amount."
This investment is not merely about increasing room numbers; it aims to expand experience-based offerings targeted at luxury clientele. Van Nerom explained that the investment encompasses not only a limited number of rooms but also an ecosystem of experiences connected to nature, as well as cultural and entertainment spaces. He admitted that from a financial perspective, it may not seem rational, but emphasized that it aligns with the high-end customer segment.
Amanoi is the only resort in Vietnam operated by the globally renowned luxury hotel and resort brand Aman, which was founded in 1988 and currently operates 38 hotels, resorts, and residences across 24 countries. The name Amanoi combines Aman with the Vietnamese word "noi" and opened in 2013 in the former Ninh Thuan Province. The resort is situated within the UNESCO-recognized Nui Chua National Park, a biosphere reserve.
Amanoi's expansion will continue to prioritize privacy over large-scale room supply. The resort spans approximately 90 hectares, but Van Nerom believes that the ideal number of rooms should not exceed 90. Currently, Amanoi operates 68 rooms, and he stated that around 78 rooms would be an appropriate scale to maintain quality, noting that nearly one room per hectare strikes the best balance between guest experience and natural landscape preservation.
The luxury accommodation market in Vietnam reportedly established a distinct price range in December 2022. According to data from last year, Amanoi offered a three-bedroom villa for $15,000 per night, requiring guests to book a minimum of three nights. This package includes two private pools, a spa, a living room, a dining area, a beach, and two 24-hour butlers.
Meanwhile, the Vias Resort on the Phu Quoc Peninsula also introduced luxury accommodation options. This resort presented a five-star exclusive rental model in August 2022, with prices ranging from $10,000 to $25,000 per night, accommodating up to 100 guests with 25 staff members providing services.
Market experts believe that the supply of luxury resorts in Vietnam remains insufficient. Morgan Ulakanathan, head of tourism and hotel consulting at Avison Young Vietnam, noted that while competition in the resort market is intensifying, the luxury segment lacks adequate supply despite the increase in five-star resorts. He explained that assets like Amanoi possess unique value that is difficult to replicate, making investors willing to inject additional funds.
The key criteria for investment are shifting from cost per room to scarcity and brand value. Ulakanathan stated that investment in this sector should not be evaluated solely based on the cost per room. He analyzed that value derives from scarcity, quality, craftsmanship, and the brand's ability to command top-tier room rates.
Changes in the customer base are also cited as a factor driving the expansion of luxury resorts. Van Nerom noted that a decade ago, the primary clientele was in their 50s, but now millennials and Generation Z account for over 60% of guests. He explained that these younger generations prioritize authentic experiences and meaningful memories over material luxury or ostentation. Tourism market indicators further support investment decisions. In the first half of this year, Vietnam welcomed 12.3 million international tourists, a 14.9% increase from the previous year, generating $9 billion in tourism revenue. Khanh Hoa Province alone received over 4.6 million visitors during the same period, marking a 66.1% increase, with revenue rising by 24.9% to 42.5 trillion dong.
Responses to the luxury resort investment have linked it to cultural value. One user noted that the floor tiles used in the resort are handcrafted using traditional methods, taking over 50 days to produce a single tile. They highlighted the use of ancient Bat Trang glaze, which is becoming increasingly rare due to production costs, expressing respect for the investment in culture and mindset.
Conversely, some comments expressed surprise at the scale of the investment. One user described the 80 billion dong investment per room as a "true luxury item." Another remarked that while typical resorts focus on increasing room numbers for profitability, luxury resorts prioritize space and experience, suggesting that success is possible if the market accepts this approach.
Additional opinions on travel and development were also shared. Some users expressed realistic concerns about living costs and affordable travel, while others hoped for more world-class investors in Vietnam. One comment emphasized that investments, whether by Vietnamese or foreign companies, should prioritize respect for the landscape.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.