Hanoi sees 3% increase in 5-star hotels

The city now has over 11,000 hotel rooms across 67 projects, the firm said in a recent market report.

The four-star properties to rebrand or upgrade included the Movenpick Living West in Cau Giay District, previously the Eastin Hotel & Residences.

Mauro Gasparotti, director of Savills Hotels, noted that hotel and condotel businesses are capitalizing on the rebound in tourism to rebrand or develop new projects to boost their competitiveness and market share.

Michael Piro, CEO of real estate advisory Indochina Capital, said Vietnam received 8.8 million foreign tourists in the first half, higher than the pre-Covid level of 8.5 million.

This is in line with the overall trend in the Asia-Pacific region, where other markets like South Korea, Japan, Thailand, and Singapore have also seen growth in their hotel segment.

According to forecasts by the World Travel & Tourism Council, the number of visitors to Asian countries this year could rise by more than 33% from 2023.

Gasparotti said property developers should optimize operational efficiency, improve service quality and diversify their product offerings to seize opportunities as tourism recovers.

The average hotel occupancy rate during the second quarter in Hanoi was 67%, up 2 percentage points from the first and 3 points year-on-year, savills said.

The average tariffs at four- and five-star rooms fell 6% from the previous quarter but were up 9% from a year ago, it added.

CBRE, another property consultancy, reported that the revenue per available room in Hanoi and HCMC reached 80% of pre-Covid levels in the first half, up from the 70% seen a year ago.