Kim Lien Hotel in Ha Noi. Industry insiders expect a new luxury Park Hyatt hotel to be built on this site. — Photo vtc.vn

HA NOI (Biz Hub) — ThaiGroup Joint Stock Company and Chicago-based Hyatt will build a US$165 million Park Hyatt hotel in HaNoi.

Officials from the companies signed a deal for the development in the presence of Prime Minister Nguyen Tan Dung, on the sidelines of the US-ASEAN summit in Sunnylands, California on Monday.

The 300-room luxury hotel was expected to be completed in 2018. Tran Anh Tuan, the director of ThaiGroup's representative office in Ha Noi, told the press that he was yet unable to confirm a specific plot for construction.

However, industry insiders expected the hotel to be built on a 3.5-hectare "golden land" in Dao Duy Anh Street in Dong Da District, where Kim Lien Hotel is currently situated.

Late last year, ThaiGroup Chairman Nguyen Duc Thuy paid VND1 trillion ($44.44 million) to acquire a 52.4 per cent stake into the Kim Lien Tourism Joint Stock Company, which runs the existing hotel.

When Thuy became chairman of Kim Lien Tourism earlier this year, he told Biz Hub that the acquisition was part of ThaiGroup's long-term strategy.

"We plan to develop Kim Lien Hotel as a highlight of Ha Noi with a complex of four- and five-star hotels," he said.

ThaiGroup was established in 2007 as Xuan Thanh Group with a charter capital of VND2.5 trillion ($111.11 million). It is based in northern Ninh Binh City and deals in real estate, construction, transportation, hydropower and finance.

Kim Lien Tourism was formerly a state utility company, which has nearly VND70 billion ($3.11 million) in equity and primarily provides restaurant and catering services. — VNS