Warburg Pincus, the New York-based private equity firm, has teamed up with Vietnamese private equity firm VinaCapital to establish a Southeast Asia hospitality platform.
The platform, structured as a joint venture between the two, will consist of the development, acquisition and management of hospitality assets across Southeast Asia. The JV will be seeded with up to $300 million of capital commitments from Warburg Pincus and VinaCapital, as well as a 100 percent stake of Serenity Holding and select resort and city hotels in Vietnam.
Serenity, previously co-owned by VinaCapital founder Don Lam and Marco van Aggele, is a domestic hotel management company focusing on developing and operating specialized boutique resorts and upscale city hotels in Vietnam under its Fusion brands.
“With tourist arrivals to the region expected to more than triple over the next 10 years, hospitality and tourism will be at the forefront of driving the region's outsized growth. Mr Lam, Mr van Aggele and VinaCapital have strong local market knowledge and a proven track record of investing in all aspects of the hospitality sector. We look forward to working closely with them to expand the footprint of the JV across the region with the goal of an eventual IPO,” commented Jeffrey Perlman, managing director and head of Southeast Asia of Warburg Pincus.
The platform will attempt to grow its asset base through acquiring, repositioning and enhancing city hotels in key tier-1 cities and developing luxury resorts across Southeast Asia. The two groups added that the hotel market in the region is highly fragmented and the JV also plans to acquire and partner with other hotel management companies and platforms to further enhance its management capability and to expand its brand and asset coverage.