According to Savills Vietnam, the supply of hotel rooms is expected to continue growing in the coming years, especially in the 5-star segment and in urban areas.
According to Savills Vietnam's Q2/2024 Market Overview report, the hotel sector in Hanoi has a stable supply of 11,120 rooms from 67 projects. Of these, the supply of 5-star hotels increased by 3% and the supply of 4-star hotels decreased by 7% quarter-on-quarter.
This is due to the Movenpick Living West project (formerly Eastin Hotel & Residences), which has upgraded from 4-star to 5-star. This indicates positive growth in the development and demand for the high-end hotel segment in Hanoi. Meanwhile, the decrease in the supply of 4-star hotels may affect accessibility for middle-income travelers.
The Hanoi hotel market also recorded positive signs with an increase in occupancy rates. While the hotel occupancy rate reached 65% in the first quarter, an increase of 1 percentage point quarter-on-quarter, in the second quarter it reached 67%, an increase of 2 percentage points quarter-on-quarter and 3 percentage points year-on-year.
Tourism is having a significant impact on the growth of the hospitality industry.
Matthew Powell, Director of Savills Hanoi, commented: “The tourism industry is recovering strongly as the number of international visitors begins to increase again. In addition, MICE (meetings, incentives, conferences, exhibitions) activities in cities are also developing quite positively.”
This is a positive trend in the context of a stable macroeconomic and political environment. This positive context strongly impacts the growth of the hotel industry nationwide and in Hanoi.”
According to a Savills report, the average hotel rental price in Hanoi decreased by 7% quarter-on-quarter but increased by 11% year-on-year. Average rental prices for 4-star and 5-star properties contributed to this trend, with a decrease of 6 percentage points quarter-on-quarter and an increase of 9 percentage points year-on-year.
The booming tourism industry has a positive impact on rental prices. In addition, tourism stimulus programs and the influence of seasonal factors are also creating attractive rental rates for tourists.
Given the positive market trends and demand, Mr. Matthew predicts that the supply of hotel rooms will continue to grow. In 2025-2026, an estimated 2,689 new rooms are expected from 12 projects. Eight 5-star projects will provide 74%, while 4-star projects will supply 26% of the new supply during these two years.
At the same time, 60% of the new supply is located in the inner city area, with 1,732 rooms from 8 projects. International and domestic operators have roughly equal supply ratios, with 1,179 and 1,177 rooms respectively.
The international operators of future supply are familiar brands such as Hilton, Fusion, Accor, and Four Seasons.
Galaxy
Source: https://doanhnghiepvn.vn/kinh-te/nguon-cung-khach-san-tiep-tuc-tang-truong-nhung-nam-toi/20240719020904079
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