The occupancy rate was 45%, up 20 percentage points year-on-year but it was still 23 percentage points less than the figure in 2019.

The average room rate reached 1.6 million VND (67 USD) per night last year, a year-on-year increase of 21%.

Five-star hotels had the most significant improvement, with the occupancy rate increasing by 24 percentage points year-on-year and the average room rate rising by 44% year-on-year.

The growth was driven by business travelers and MICE (meetings, incentives, conventions and exhibitions) guests.

Cao Thi Thanh Huong, research manager at Savills HCM City, said: “Following strong domestic support, the hospitality sector is returning to solid performance, enhanced by international and business travellers.”

The city had the highest visitor volume in the country last year but it did not reach 2019 levels.

The city welcomed 3.5 million international visitor arrivals last year, half the figure in 2019.

The city’s tourism sector is targeting to receive five million international visitor arrivals and 35 million domestic holidaymakers and earning tourism revenue of 160 trillion VND (6.74 billion USD) this year.

By the end of 2022, supply reached more than 15,500 rooms from 111 projects in the city, increasing 8% year-on-year, almost reaching the pre-pandemic level, according to Savills’ latest report on the hotel market.

The pipeline is limited with only Sotetsu Hotel and Macxy Hotel launching by 2025. Other future projects have been postponed or do not have specific construction schedules.

New supply of 271 rooms came from the five-star Fusion Originals and four-star Northern Charm in the city’s District 1./. VNS