30% of new international hotel brands opening in Vietnam are conversion projects - Lang Son Newspaper: Latest news on politics, economics, society, culture

Many owners are now more interested in partnering with international hotel operators to convert or upgrade to a more upscale brand.

In 2024, Vietnam's accommodation market will see a marked improvement in room occupancy. (Photo: Tuong Vi/VNA)

Mr. Mauro Gasparotti - Director of Savills Hotels - commented that the demand for the hotel segment in Vietnam has recovered strongly, especially the growth of some international tourist markets, which has actively supported the recovery of the resort industry.

However, the ability to capture demand will depend largely on the capacity of each hotel.

To increase competitive advantage in the market, a survey by Savills Vietnam shows that many owners are now more interested in cooperating with international hotel operators to convert or upgrade to a higher-end brand.

Signing up for renovation and rebranding projects helps hotel chains increase their portfolio of projects operating in Vietnam more quickly. Since the pandemic, the market has recorded many rebranding projects.

The 2022-2023 period marks a record high rate of rebranding projects, accounting for 52% of the total number of newly opened international hotel branded projects during this period.

This trend is set to continue into 2024, with an estimated 30% of all new international hotel branded projects opening this year continuing to be rebranding projects.

Mr. Mauro Gasparotti shared that the wave of hotel development with international operator brands started early in Vietnam in 2008-2010.

Typically, a hotel management contract is for 10-15 years. As such, many of these management contracts are nearing their expiration date.

“Some owners are considering extending their contracts. Others are considering rebranding, especially if the project needs renovation and there is a possibility of upgrading to a more premium brand. Compared to 10 years ago, the hotel industry in Vietnam has developed much more, so hotel operators are also willing to propose a more premium brand if the quality of the project meets the brand standards,” said Mauro Gasparotti.

Ms. Uyen Nguyen - Head of Consulting at Savills Hotels - cited a number of projects that have been stalled for many years and are also discussing with hotel operators to restart under new brands. Typically, some large projects in the Da Nang and Hanoi areas.

In addition, some hotels after many years of operation are also working with the current operator to upgrade to a more premium brand.

For example, the Hilton Hanoi Opera Hotel is in the process of upgrading to become the first Waldorf Astoria branded project in Vietnam. Or the Meliá Ba Vi Mountain Retreat resort project will be repositioned as Meliá Ba Vi Mountain, Member of Meliá Collection.

In 2024, the Vietnamese accommodation market will record a clear improvement in room occupancy every month, thereby contributing to improving the revenue per available room (RevPar) index.

Since the beginning of the year, Vietnam's RevPAR index has grown by about 15% compared to the same period last year and is one of the best growth rates in Southeast Asia, Savills informed.

According to Mr. Mauro Gasparotti, room occupancy growth this year is driven by a strong recovery in international tourist arrivals to coastal destinations.

Typically, Nha Trang-Cam Ranh and Phu Quoc have recorded room occupancy rates increasing by 40-50% compared to the same period last year.

In contrast to the capacity growth, the average room rate is still 3% lower than the same period in 2023.

The main reason is that the supply of mid-high-end hotels in markets such as Nha Trang and Phu Quoc keeps room rates at competitive levels to increase market share, especially hotels that have just opened after the pandemic./.

Source: https://baolangson.vn/30-thuong-hieu-khach-san-quoc-te-mo-moi-tai-viet-nam-la-du-an-chuyen-doi-5020346.html