HCMC hotel room prices up 21% in 2022

The occupancy rate was 45%, up 20 percentage points. Five-star hotels saw room rates rise by 44%.

In the fourth quarter the average tariff was VND1.8 million, up 9% from the previous quarter, and the occupancy rate was 62%.

According to Savills’ latest report on the hotel market, despite an increase in room supply in 2022, occupancy and room rates climbed, indicating a recovery after the Covid pandemic.

But the average rate was 18% lower than in 2019 before the pandemic began.

Savills expected China’s reopening to positively affect Vietnam’s tourism this year.

HCMC has more than 15,500 rooms at 111 hotels, a year-on-year rise of 8% and nearly at pre-pandemic levels.

Trang Minh Ha, Chairman of consulting and training firm North Stars Asia, said hotels have hiked room rates for the peak travel season during Christmas, New Year and Tet (the Lunar New Year holiday). Many overseas Vietnamese have been arriving in the city for Tet in late January.

Ha said though China has reopened, tourists would not immediately visit HCMC but there would be more and more business visitors and people coming for conferences in the near future.

According to the municipal Department of Tourism, last year the city received nearly 3.5 million foreign visitors and 25 million domestic visitors, and earned tourism revenues of VND120 trillion, all higher than in 2021 but down from 2019.

Vietnamese hotels’ revenues are expected to grow at 7% annually between 2023 and 2027, and average revenue per guest by 0.3% to reach $158 by 2027.

According to German online market and consumer data company Statista, hotel revenues in Southeast Asia are expected to fully recover by 2023 when Chinese visitors return.