The average room rate at three to five-star hotels in HCMC was VND1.9 million per night in the first half this year, 11.3% lower than in 2014, as there were new hotels up and running in the city, resulting in price competition.

A general view of the five-star Rex Hotel in downtown HCMC 

According to data from the HCMC Department of Tourism, this rate was 3.6% higher than in the same period last year. But in comparison to the level in the same period of 2014, it was 11.3% lower as competition among old and new hotels was growing.

Total tourist arrivals to HCMC in 2016 were 1.12 times higher than in 2014, though.

The department said the hotel room price in this segment in HCMC is the same as in other ASEAN markets, but higher than in Danang with US$76.94 per night and lower than in Hanoi with US$86.22 per night.

Currently, the city has 2,128 hotels and other lodging facilities with more than 50,000 guest rooms. Among them are 1,941 star-rated hotels with nearly 49,000 rooms and 185 hostels with more than 1,000 rooms.

Last year, the city attracted 5.2 million international and 21.8 million domestic tourists. The city looks to annual growth of 9% and 16% in international and domestic arrivals respectively, and average room occupancy of 80% by 2020.

According to the department, the city should encourage construction, expansion and renovation of three to five-star hotels, homestay services and boutique hotels.

Enterprises should not invest in small one and two-star hotels because the number of rooms in this segment accounts for 69% of the total in the city while their average occupancy is low.

A recent report by property services and consulting firm Jones Lang LaSalle said the city will have 13 new mid and high-end hotels with 3,500 rooms in the next three years.

SGT