Top end hotel performances in Vietnam’s two major cities dropped in the second quarter as low season kicked in.
Hotels in Hanoi reported an average room rate of US$87 per night, slightly better than Ho Chi Min City (HCMC) which recorded a room rate of US$83. This represents a drop of 12 percentage points on Q1 in HCMC according to an industry report by Savills Vietnam. However Hanoi hotels weathered the low season better, with room rates falling away just two percentage points on average.
Meanwhile, occupancy indicators show that HCMC retained higher occupancies through the quarter, with 60% of hotel rooms filled compared to 55% in Hanoi.
Arrivals figures for Hanoi are a scattered, with Savills estimating a total of 552,000 visitors in H1 2011, compared to official statistics from Hanoi City’s Department of Culture, Sports and Tourism, which told the Saigon Times that arrivals reached nearly one million.
Even still, Savills estimates reflect a 20% increase in arrivals for the period and the company expects this figure to keep rising in Q3 as local government has plans to boost tourism alongside summer promotions from tourism agencies.
Savills predicts that demand will outpace room supply over the next five years. Hanoi’s 48 three, four and five-star hotels will do well in the future as property development is focused on mixed-use projects elsewhere in the country. The market research firm forecast that the capital’s room inventory will increase by just 400 units over the next six months.
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