Savills: Hotel market seeing strong development

In the fourth quarter of 2016, one three-star hotel completed renovations and five new three-star hotels supplied more than 440 rooms. “Ho Chi Minh City’s hotel stock was more than 15,900 rooms from 130 projects, up 3% quarter-on-quarter and 8% year-on-year,” the report stated.

Average occupancy was approximately 69%, up 3 ppts quarter-on-quarter. The average room rate (ARR) was VND1,890,000 (US$83) per room per night, up 1% quarter-on-quarter due to ARR increases in all segments, but decreasing 3% year-on-year.

In 2016, Ho Chi Minh City set a new record of 5.2 million international visitors, increasing 13% year-on-year and accounting for 52% of arrivals to Vietnam.

Meanwhile, Hanoi’s hotel stock increased 1% quarter-on-quarter after the re-entry of one three-star hotel and the withdrawal of another three-star hotel for renovations, but fell 3% year-on-year. Sofitel Plaza Hanoi was officially rebranded Pan Pacific Hanoi.

Average occupancy was up 8 ppts quarter-on-quarter due to the peak season but relatively stable year-on-year. The ARR increased 12% quarter-on-quarter and 9% year-on-year. RevPAR increased 27% quarter-on-quarter and 9% year-on-year.

Hanoi recorded 4,000,000 international arrivals in 2016, up 23% year-on-year and accounting for 40% of arrivals to Vietnam.

Hotel market performance

The country also catered to more than 62 million domestic travelers this year, with total revenue estimated at VND400 trillion (US$18 billion), according to the Vietnam National Administration of Tourism (VNAT).

Vietnam welcomed its 10 millionth annual foreign visitor for the first time on December 25 at Phu Quoc International Airport off the coast of the Mekong Delta’s Kien Giang province.

This was the first time Vietnam has welcomed 10 million international arrivals in a calendar year and represents an increase of 25% year-on-year. Visitor numbers from Northeast Asia and Western Europe rose remarkably.