Hanoi suffering from room shortage - survey
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Visitors not only find it hard to find a five-star hotel room in Hanoi, but they are getting ripped-off when they do. These are the key findings of a new survey published by real estate giants, CBRE and reported by Vietnam Net Bridge.
According to CBRE Vietnam’s survey, average room rates at five-star-rated hotels in the Vietnamese capital rose 34% year-on-year in the third quarter of 2008, with occupancy rates at around 90% for the past 2 months.
The result of this under-supply has been that many companies have had to cancel their tourism contracts in Hanoi, as the economic climate bites and all companies are cut back on travelling expenses. Growth in tourist arrivals to Hanoi has slowed; in the first nine months of the year, the number of foreign arrivals in Hanoi reached 960,000, a year-on-year increase of just 5%.
According to the Hanoi Tourism Department’s statistics, Hanoi now has just 8 five-star hotels and 27 hotels rated three- or four-star – a total of 5,000 rooms. Most of these have annual occupancy rates of 85-95%.
Construction plans are underway, with developments such as the Movenpick Hanoi opening later this year, and the Novotel Hanoi on the Park projected for 2009. Even with these, and other planned developments however, by 2010 the city is expected to only have 2,000 extra rooms by 2010 – unlikely to dilute occupancy levels too much, or force down the spiralling room rates.
Comments are closed.