Banyan Tree plans $870 million resort, golf course in Vietnam

The Singaporean operator of luxury spas and hotels has obtained an investment license from Vietnamese authorities to build the Laguna Vietnam resort on 300 hectares (741 acres) of beachfront land in the Loc Vinh commune of Danang city.

Resort operators are expanding into Vietnam as tourism increases because of rising per capita incomes and strengthening economic growth. Banyan Tree said earlier this year it plans to build the "single-largest" resort in the Southeast Asian country.

Banyan Tree said in August the resort, which will be modeled after its Laguna Resorts & Hotels Pcl on Thailand's Phuket island, would cost about $280 million.

"The estimated cost is higher than what we have previously announced with the expanded scale" of the development, according to the statement from Jane Teah and Lee Kin Meng, company secretaries for Banyan Tree.

The project will be funded by bank debt, property sales, and proceeds from a new private equity fund to be set up and managed by Banyan Tree, the statement said. The private equity fund will raise as much as $400 million, and Banyan Tree will take a 15 percent stake, according to the release.

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