5-star hotels to take up Hanoi’s market
written by seo
at Tuesday, May 21, 2013
Market survey firms, which believe that more and more high income tourists would come to Hanoi, have all predicted that more 5-star hotels would be available in the city by 2015.
Dau tu has quoted the report of the Vietnam National Administration of Tourism
(VNAT) as saying that 1.8 million foreign travelers came to Vietnam in
the first 3 months of the year, a decrease of 6.2 percent in comparison
with the same period of the last year.
Meanwhile, according to CBRE, a real estate service provider, 425,000
foreign tourists came to Hanoi during that time, up by 18.9 percent
over the same period of the last year.
The increase in the number of tourists to the capital city has
brought benefits to local hotels in the context of the economic
recession and less spending on tourism. The hotel occupancy rate has
increased slightly by 0.65 percentage points to 58 percent.
However, the occupancy rates varied for different market segments.
While 5-star hotel room occupancy rate increased by 1.29 percentage
points to 61 percent, the ratio of 4-star hotels decreased by 1
percentage points to 52 percent.
The 5-star occupancy rate improvement has been attributed to the 4.8
percent room rate decrease, now hovering around $103 per night.
Meanwhile, the hotel room rates of 4-star and 3-star hotels decreased by
4.16 percent and 0.74 percent, respectively to $62.3 and $34.47. This
has led to the increase of the RevPar (revenue per available room) of
3-star hotels and the decrease of the index for 4-5 star hotels.
According to Savills, also a real estate consultancy firm, Hanoi had
7,750 hotel rooms from 53 hotels in the first quarter of 2013. The three
hotels Golden Silk Boutique, Lan Vien and Tan Da Spa & Resort have
just been recognized as 3-star hotels. The average revenue per room
available was VND930,000 in the first quarter, down by 5 percent in
comparison with the quarter before, but up by 2 percent if compared with
the same period of the last year.
The yearly occupancy rate remains unchanged at 57 percent, while the
hotel room rate was VND1.64 million per room per night on average, a
slight increase of 0.2 percent over the quarter before and 2.4 percent
over the same period of the last year.
In general, the Hanoi’s hotel market remains stable, while there have
been signs showing the increase in the hotel room supply and the
upgrading in the quality to better satisfy the market demand.
Commenting about the Hanoi’s hotel market in the near future, Do Thu
Hang from Savills said 5-star hotels would dominate the market by 2015.
According to Hang, 8 hotel projects would provide 1,400 more hotel
rooms to the market in 2013. Many hotels would be managed by
international firms like Intercontinental, Marriott, Hilton Hotels &
Resorts and Candeo.
It is expected that by 2015, the Hanoi market would have 1,765 rooms
from the 10 out of the 13 new projects, of which 5-star hotel rooms
would account for 54 percent.
Richard Leech from CBRE believes that the demand in Hanoi
does not change heavily like other markets thanks to the regularly
organized conferences, exhibitions and other entertainment activities.
According to the International Air Transport Association, Vietnam
would become the third fastest growing cargo and passenger transport
market in the world. This has given more reason to investors to pour
money into high end hotels.
Souce: Google.com
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