OCH's StarCity Westlake 5-Star Hotel Project Land Revoked by Hanoi Authorities

Overview

Hanoi authorities have revoked land for the StarCity Westlake 5-star hotel project at 10 Tran Vu, invested by VIPTOUR-TOGI (86% owned by OCH, a subsidiary of OGC), due to slow implementation. The project, with a book value of nearly VND 179.5 billion, has been stalled for years despite previous extensions. This regulatory action threatens a key asset for OCH and raises concerns about the group’s real estate development pipeline.

Key Facts

• Hanoi People’s Committee revoked land for 24 delayed projects, including the StarCity Westlake hotel at 10 Tran Vu.
• The project is invested by VIPTOUR-TOGI, which is 86% owned by One Capital Hospitality (OCH), a subsidiary of Ocean Group (OGC).
• The hotel was planned as a 5-star property with 9 floors and 3 basements, originally costing VND 230 billion.
• Construction started in 2013 but stalled between 2014-2019; only basement and ground floor columns were completed.
• In early 2023, the project was granted an extension to January 2025, with revised scale of 8 floors and 2 basements, and investment raised to VND 500 billion.
• As of March 31, 2026, the project had a book value of VND 179.5 billion, the largest item in OCH’s construction-in-progress.
• OCH shares closed at VND 8,300 on June 1, 2026, down 9.78% on high volume of 811,100 shares.

What Happened

On June 1, 2026, the Hanoi People’s Committee announced the revocation of land use rights for 24 projects that have been delayed, including the StarCity Westlake 5-star hotel project at 10 Tran Vu, Ba Dinh district. The project is developed by VIPTOUR-TOGI, a company 86% owned by One Capital Hospitality (OCH), which is itself a subsidiary of Ocean Group (OGC).

The project was originally approved as a 9-story, 3-basement luxury hotel with total investment of VND 230 billion, expected to be completed by 2011. However, construction only began in 2013 and was halted after completing the basement and ground floor columns. Despite an extension granted in early 2023 extending the deadline to January 2025, the project failed to resume. Just days before the revocation, OGC and OCH management had stated they were pursuing legal procedures to restart the project in the second half of 2026.

Market Context

OCH shares fell 9.78% on June 1, 2026, closing at VND 8,300 with volume of 811,100 shares, reflecting immediate negative market reaction. OGC shares were flat at VND 3,250. The revocation adds to existing concerns about OCH’s asset quality and its ability to generate returns from its real estate portfolio. OCH’s stock has been under pressure amid broader weakness in the real estate and hospitality sectors on HOSE.

Strategic Significance

The land revocation represents a material setback for OCH’s real estate development strategy. The StarCity Westlake project was the largest single asset in OCH’s construction-in-progress, and its impairment could significantly impact the company’s book value and future earnings. For OGC, the parent group, this highlights ongoing challenges in monetizing its land bank, which management had previously cited as a key asset. The event also underscores regulatory tightening on delayed projects in Hanoi, which may affect other developers with stalled land holdings.

What to Watch

• OCH’s formal response and any appeal or legal action against the revocation.
• Impairment charges in OCH’s next quarterly financial statements.
• OGC’s ability to redeploy capital or find alternative use for the land.
• Further regulatory actions against other delayed projects in Hanoi.
• OCH’s progress on other hospitality assets, such as StarCity Bayfront Nha Trang and Dusit Le Palais Tu Hoa Hanoi.