VinaCapital invests $43m in Hilton Hanoi Opera Hotel

VinaCapital, a Vietnam-focused private equity firm, has invested about $43 million from two funds under its management in a Hilton hotel.

VinaCapital, a Vietnamese private equity firm, has acquired a 70 percent stake from a group of investors led by Vivendi, a French business industrial group, in Hilton Hanoi Opera Hotel, for about $43 million.

The investment was made from two funds under VinaCapital’s management: 75 percent from VinaLand Fund, and 25 percent from Vietnam Opportunity Fund.

Don Lam, VinaCapital’s managing parent, said Hilton is the second five-star hotel investment by VinaCapital in Hanoi.

Hilton Hanoi Opera is a 296-room French Colonial-style five-star hotel with an occupancy rate above 80 percent.

In a separate transaction, VinaLand has acquired a 25 percent stake in Vung Tau Tourist, a local company that owns over ten hotels and other tourist facilities in the province. The former provincial government-owned entity, privatised toward the end of July, has a market capitalisation of $15m.

VinaCapital is the largest outside investor in Vung Tau Tourist.

The provincial government retained a majority 51 percent stake in Vung Tau Tourist, whose shares are traded on Vietnam’s over-the-counter market. The remaining 24 percent stake is held by local private investors, Lam said.

The investment was made from Vietnam Opportunity Fund. Listed on AIM in 2003, the $240 million fund is poised to conduct its sixth round of fundraising after summer, according to  Lam.