According to the real estate research and consulting firm JLL Vietnam, in January-September 2022, HCM City City hotels showed signs of slight recovery with the average room rate reaching 42 USD/room/night, up 104.7% year-on-year. However, this figure was only 52.0% of the 2019 figure pre-pandemic. 

In Hanoi, the room rate increased by 60.2% year-on-year in the same period, while the room occupancy rate rose by 15.1% year-on-year. 

A report from real estate research and consulting firm CBRE Vietnam showed that the hotel room rate in Da Nang City was at 70 USD/room/night and room occupancy remained at 26.3%, an increase of 15% year-on-year. 

The room rent recovered positively, to nearly 70% of the pre-pandemic period, while the occupancy rate was only 42% of 2019. In 2022, the room rent is forecast to rise by 30% year-on-year, reaching $79/room/night.

Hotel supply in Vietnam is forecast to increase in the coming time. Ho Chi Minh City recently has had 13 new hotels and serviced apartments, totaling 448 rooms. The southern metropolis will have an additional 1,974 premium and luxury rooms in the 2022-2025 period, with a growth rate of 17.4%.

Hanoi has more than 348 hotels and serviced apartments, with a total of 26,849 rooms. Of these, 9 hotels opened in 2021, with 720 rooms. It is expected that 5,617 hotel rooms will be added to the market from now through the end of 2025.

By the end of 2022, Da Nang had 10 new hotel projects with 2,442 rooms, bringing the total rooms to nearly 18,000, with 91 projects. By 2024, the central city is expected to have a total of 99 4-5 star hotels, with over 21,000 rooms in total.

Vietnam has welcomed many more hotel brands such as Grand Mercure Hanoi (250 rooms), Novotel Le Duc Tho (350 rooms), Four Seasons Hanoi (100 rooms) and Fairmont Hanoi (241 rooms). In Da Nang, hotel management units plan to expand with a series of brands such as Mandarin Oriental, JW Marriott, M Gallery, Le Méridien, Wink Hotels, lyf by The Ascott Limited. The presence of many professional management units enhances the position of the high-end hotel market.

New directions

According to Mr. Mauro Gasparotti, Director of Savills Hotels APAC, the hotel industry is in a transition period, when the market experiences temporary difficulties. However, these challenges will lay the groundwork for long-term improvements, helping to shape the market more clearly as well as improve service quality and operation management.

In Sitel Group’s hotel market report, Marketing Director Martin Wilkinson-Brown, commented that, when moving to a new state and hotels reopen, customers’ experience expectations are higher than ever. In the future, Mr. Brown predicted, guests will expect enhanced services such as online agents or AI-powered support channels, where communications are personalized, not to mention improved personalized services. 

Mr. Varun Grover, country director of Booking in Vietnam, said that Vietnam's tourism industry is recovering spectacularly. The needs of visitors have changed so resort and hotels cannot serve guest the old way. They must have flexible policies and develop in a sustainable manner.

The segment of business guests, long-term guests and MICE tourists also grows well. Some high-end and resorts also recorded positive results. This proves that quality products still have their own customer even in volatile market periods.

One of the new directions chosen by many hotels is the application of digital technology. A report by market research firm Amadeus, based on a survey of 688 hotels worldwide, shows that touchless technology is one of the useful solutions for hotels to optimize resources and increase customer experience.

Duy Anh