Strong tourism development has attracted regional investors to the hotel and resort market.
Centara Hotels & Resorts, a Thai hotel management group, last July announced that it would expand its investment in Vietnam, and open at least 20 hotels in the next five years.
Other investors are pouring money into the hotel sector, especially in HCM City, Hanoi and Da Nang.
In HCM City, 1,114 hotel rooms were added as of September 2019, raising the total number of rooms available to 20,200. Analysts predicted that from 2020, the new hotel room supply will increase more slowly as the government tightens the procedure of approving hotel projects.
It is expected that by the end of 2021, the total supply in HCM City will reach 22,000, and 55.4 percent would be in the high-end market segment.
|With the future supply projected to be limited in 2020, industry-wide performance is expected to grow positively in the short and medium term.
In terms of transaction, as of August 2019, hotel transaction performance has been good with the growth rate of 5.8 percent and the average daily rate (ADR) reaching $118. The revenue per available room (RevPAR) was $81, an increase of 0.7 percent. The occupancy rate reached 68.8 percent, down by 4.8 percentage points over the same period last year.
With the future supply projected to be limited in 2020, industry-wide performance is expected to grow positively in the short and medium term.
In Hanoi, the hotel sector also has benefited from the increase in number of foreign travelers. As of August, the RevPAR had shown considerable growth rate of 8.4 percent over the same period last year.
It is expected that Hanoi would have 1,008 hotel rooms more in the fourth quarter of the year, raising the total number of rooms to 18,699. Of this, 97 percent of new supply would be in the mid- and high-end segments. By 2021, Hanoi would have more than 20,400 rooms, of which 59.8 percent of rooms in the high-end segment.
Hanoi is receiving a large number of foreign travelers from North America, following the ad campaign on CNN in June-August. Even in summer, the sea tourism season, Hanoi still had received 21.6 million travelers, domestic and foreign, by September 2019, an increase of 9.5 percent over the same period last year.
Statistics from JLL show that the industry-wide ADR index in Da Nang decreased by 13.2 percent, while the occupancy rate increased by 4.2 percentage points compared to the same period last year in August 2019, leading to the total RevPAR index dropping by 9.6 percent and showed signs of oversupply.
In Da Nang, the ADR of the industry decreased by 13.2 percent, while the occupancy rate increased by 4.2 percentage point, leading to the RevPAR decrease of 9.6 percent.