Holiday Inn Project


Holiday Inn Project | Cam An Beach, Hoi An, Vietnam 2016-18 | Project Management

Holiday Inn Project | Cam An Beach, Hoi An, Vietnam 2016-18 | Project Management


QUESTION OF ALL QUESTIONS in Client`s minds: Do I really need it? ;-)

In the following lanes, we will take a look at PM IMPACT at real Project in the course of one year of activity. Conceived as 5-star costal Hotel Resort, we will compare performance output of Cam An, Holiday Inn Project, near Ancient City of Hoi An, from October 2016 against Final version from July 2017 managed by ÆTERNA members.


Difference is hardly comparable.
Please note Site Coverage difference. Efficiency vise with parameters given, previous Consultancy is 2.73% off of the mark/target in that regard where ÆTERNA achieved 0.04%. Land use vise, previous Consultancy had basically the same parameter as we did for Freehold land 17,695.00m2, but please refer to ratio between residential and nonresidential footprint and total GFA achieved. Footprint vise CORE provided mathematically razor sharp solution with:

• 7,434m2 – 7433m2 ratio between Nonresidential – Residential! One sqm (1 m2) difference in accordance with Local Authorities’ Regulation (Residential footprint cannot exceed 50% of overall Total footprint)!!!
• Previous Consultant had that ratio 4,600m2 – 5,360m2. Completely wrong and in breach of Local Authorities’ Regulation!!!
• Total GFA follows obviously this pattern: Previous Consultant`s ratio is 12,828m2 - 14,040m2; still in breach of Regulations, whereas ÆTERNA`s    ratio is 25,115.30m2 – 24,416.40m2 in accordance with Regulations.
Development Parameters adds another layer to this comparison.
Obviously ÆTERNA provided much more available units. In October 2016 we started with 218 units. In July 2017 ÆTERNA proposed solution with 387 units. More about that in following section of comparison.
What is very, very obvious is disparity in numbers regarding proposed Facilities and F&B. Modern Hotel with 4 star international rating, or 5 star local, must provide content to his guests. Variety of food and beverage stations, accompanying activities offered is a must on today’s hospitality market. To elaborate on this subject further we must dig in to history of hospitality and how services and operations evolved.


ÆTERNA PM SCHEDULING activity aftermath:

ÆTERNA solution offered 2,731m2 vs 936m2 of F&B of previous Consultant! 2.5 times more!
ÆTERNA solution offered 1602m2 vs 948m2 of Function Facilities! 1.5 times more!
ÆTERNA solution offered 1152m2 vs 488m2 of SPA and Gym! More than twice!
Back of House proposed by previous Consultant is shockingly more than three times smaller! 8,743m2 vs 2,736m2. It is our firm believe that, previous Consultant failed to schedule his BoH properly.


All stated and analyzed above left huge difference in revenues, again hardly comparable. In that regard solution developed and provided by ÆTERNA shows full superiority against solution provided by previous Consultant. Sale and rental parameters are matched for the sake of this comparison. Rental Pool Assumptions are very conservative and provided by CBRE in their Report. They used average values for all apartments ADR 180$/night. Nevertheless, end result is not coming as a surprise if we analyze Project`s Programs from October 2016 versus July 2017.
To have only three (3) Beachfront Villas, left devastating financial effect on both sale & rental revenues. For the sake of the comparison we matched previous version`s Bungalows with Ocean Villas in both categories.  We matched apartments, although ÆTERNA derived apartments have 100% sea views. Apartments provided by previous Consultant roughly can achieve 50%-50% sea and highway view. Obviously that parameter alone would have devastating effect on pricing. Not to mention lack of Facilities that should accompany successful life and sale of those apartments. Overall poor Facilities Program would have that kind of effect on functioning and occupancy of entire Development. Resort would struggle with very strong competition present on the Da Nang – Hoi An coastal strip.


ÆTERNA PM SALE & REVENUE activity aftermath:

Financially ÆTERNA solution shows superiority in both sale and rental revenues. In SALE, our residential pool resulted in almost double the figure of previous Consultant`s solution: 46,350,000 $ vs 27,800,000 $!
All come to much bigger difference when we analyze RENTAL REVENUE, three times more from ÆTERNA solution. Annual figures, calculated with long term target occupancy indexes for villas and apartments gave back staggering result of 9,401,250 $ vs 3,027,375 $!



Land Use: 4600 m2/5360 m2 Nonresidential / Residential ratio
Hospitality pool 217 units
F&B outlets 936 m2
Function Facilities 948 m2
SPA and Gym Facilities 488 m2
BoH 2736 m2

Land Use: 7434 m2/7433 m2 Nonresidential / Residential ratio
ÆTERNA solution hospitality pool 387units 1.8 times more!
ÆTERNA F&B outlets 2,731m2 2.5 times more!
ÆTERNA Function Facilities solution 1602 m2 1.5 times more!
ÆTERNA SPA and Gym Facilities solution 1152 m2 More than double!
ÆTERNA BoH solution 8743 m2, 3 times more!
ANUAL RENTAL REVENUE ESTIMATION 9,401,250 $, 3 times more!
SALE REVENUE ESTIMATION 46,350,000 $, 1.7 times more!

Talking in hindsight, we can conclude that both solutions have different amenity, charm and style. Arguably both solutions provide some sort of aesthetic experience to their possible visitors. Both Master Plan solutions are derived for the same Client, under the same set of Requirements and Restrictions issued by Local Authorities, but yet there is a day and night difference in their performance for the Owner or Developer. Financially, there are severe and heavy repercussions in their respective Operational outputs. Difference between FAILIURE and SUCCESS!