Hanoi: Hotel rental prices decrease, tourism grows positively

According to Savills, the Hanoi hotel market in Q3 2024 saw no new projects, with rental prices slightly decreasing due to promotional programs attracting guests, amidst a strong boost in domestic tourism . The tourism sector recorded positive growth.

According to Savills' Q3 2024 report, the Hanoi hotel market did not record any new projects. The current supply of hotel rooms remained stable quarter-on-quarter with 11,120 rooms from 67 projects. The current supply is mainly concentrated in the inner city area, with approximately 5,500 rooms.

Of these, 5-star hotels account for 59%. The supply of 5-star hotels increased by 8% year-on-year, while the supply of 4-star hotels decreased by 7% due to the Eastin Hotel & Residences project rebranding as Movenpick Living West and being upgraded from 4-star to 5-star. For 3-star hotels, the supply decreased by 3% year-on-year because the A25 Asean and Minh Cuong projects are no longer rated.

The average room rate for the quarter reached VND 2.7 million/room/night, a decrease of 2% compared to the previous quarter. The 5-star segment also recorded a 2% decrease quarter-on-quarter and a 1% decrease year-on-year. Meanwhile, room rates at 4-star projects increased slightly by 2% quarter-on-quarter and 1% year-on-year.

Many hotels implement promotional programs and travel packages to stimulate demand during the third quarter of each year.

Explaining the current situation of declining hotel rental rates, Mr. Matthew Powell - Director of Savills Hanoi, commented: “The third quarter of each year is usually a low season for tourism and leisure activities. Therefore, many hotels simultaneously launch promotional programs and tourism packages to stimulate demand, aiming to attract tourists in the autumn season as well as to support the domestic tourism promotion program of the Ministry of Culture, Sports and Tourism.”

Thanks to stimulus programs, the tourism industry recorded positive growth in the third quarter of 2024. By the end of September, Hanoi's total tourism revenue reached VND 81,932 billion, an increase of 18.5% compared to the same period last year.

Hanoi also welcomed 21.1 million tourists, an increase of 11.7% year-on-year. Of these, international visitors reached 4.4 million, an increase of 40.8% year-on-year, and domestic visitors reached 16.7 million, an increase of 5.8% year-on-year.

In September alone, Hanoi welcomed 510,600 international visitors. Of these, 360,000 were overnight guests, a 3% increase quarter-on-quarter and a significant 32% increase compared to the same period last year.

Although the overall picture of the tourism industry is showing positive signs, the hotel market's performance in the third quarter has not yet truly broken through, with an occupancy rate of 67%, unchanged from the previous quarter and up 6 percentage points compared to the same period last year. However, the hotel market still has significant potential for short-term recovery.

According to Mr. Matthew, from October to the end of the year, the Hanoi Department of Tourism is implementing a variety of activities to attract tourists. Among these, the most prominent is the Hanoi Tourism Ao Dai Festival 2024, along with campaigns promoting the capital's tourism destinations. Hanoi's tourism image is also being actively promoted through a collaborative publicity program with the international television channel CNN.

In addition to promoting tourism, Hanoi city also focuses on preserving and developing cultural heritage values. The Hanoi People's Committee has established a Steering Committee to implement the Project on reforming the management and preservation model of the Huong Son complex (Huong Pagoda) in My Duc district. These efforts play a crucial role in promoting the sustainable development of the tourism industry, thereby increasing demand for the hotel market.

Savills' Q3 2024 report highlights that, amidst tourism stimulus activities gradually creating a stable foundation for market recovery, the outlook for new supply is also noteworthy. From 2024, Hanoi is expected to welcome an additional 68 hotel projects, providing approximately 12,115 rooms. Notably, a 5-star hotel project is expected to open in 2024, adding 207 rooms.

Between 2025 and 2026, the market is expected to supply 3,035 rooms from 12 new projects. Of these, 5-star hotels will dominate with 77% and 4-star projects will account for 23% of the supply, promising to contribute to improving the quality of accommodation services in the city.

“The inner city area of ​​Hanoi is expected to account for 41% of the total new supply, equivalent to 5,027 rooms from 22 projects. International brands such as Hilton, Fusion, Accor, and Four Seasons will continue to dominate, managing 66% of the new supply. Meanwhile, the remaining 34% of the new supply will be managed by domestic management companies, offering travelers a wider variety of brand choices,” the report stated.

Hoai Anh

Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/ha-noi-gia-thue-khach-san-giam-du-lich-tang-truong-tich-cuc/20241018042420053