Saturday, November 9, 2024 9:24:20 AM - Markets closed
VN-INDEX 1,252.56 -7.19/-0.57%
HNX-INDEX 226.88 -0.61/-0.27%
UPCOM-INDEX 92.15 -0.17/-0.18%
Vietnam hotel market enjoys robust growth: Savills Hotels
vietnamnews - 10/4/2024 5:00:44 PM
 (0 ratings. You must sign in to rate.)
The hotel market is experiencing impressive growth with significant Revenue Per Available Room improvements, according to hospitality advisory and investment Savills Hotels.
 
 
Beachfront hotels in Da Nang City. — VNA/VNS Photo
 
The hotel market is experiencing impressive growth with significant Revenue Per Available Room improvements, according to hospitality advisory and investment Savills Hotels.
 
In the first seven months of the year, the RevPAR index surged by 15 per cent compared to the same period last year, among the strongest growth rates in Southeast Asia.
 
This has been primarily fuelled by a sharp increase in occupancy rates.
 
The recovery in occupancy rates is particularly strong at popular beach destinations such as Nha Trang-Cam Ranh and Phú Quốc, where they have been 40-50 per cent, driven by a big rebound in international tourist arrivals.
 
But despite the higher occupancy, average room rates remain 3 per cent lower compared to last year, largely due to softer rates in key markets like Nha Trang and Phu Quoc, where properties that opened post-pandemic are still working to establish their market presence.
 
Mauro Gasparotti, director of Savills Hotels, said: "Competition among properties will be fierce again, and hotels are beginning to look to 2025 as a year to rebuild margins. As a result of market maturity and the desire to gain a competitive advantage, we are starting to see increased interest from owners in rebranding their properties and repositioning to higher tiers.”
 
Recent years have seen an increase in hotel management brand conversions, with 2022-23 marking a peak with new hotel openings in the midscale segment and above at 52 per cent of new branded openings, he said.
 
This trend is expected to continue, with 30 per cent of new branded openings in 2024 anticipated to be conversion properties, he said.
 
“The first wave of branded hotel development in Việt Nam began in 2008-10, with several developers signing hotel management agreements with international hotel operators to secure a brand.
 
“Since a typical contract lasts 10 to 15 years, many of these management agreements are now nearing expiration. More developers will be able to renew their contracts or find alternatives, especially if renovations are needed, and there is potential for rebranding to higher-tier brands.
 
“Since the market is now more mature than 10 years ago, operators are more willing to upgrade their brand offerings if the property’s quality meets their standards. As a result, we will likely see more hotels changing brands.”
 
Uyen Nguyen, head of consultancy at Savills Hotels, said: “Some projects are collaborating with operators to revitalise long-stalled developments and refresh their branding.
 
“This includes major projects in Đà Nẵng and Hanoi that are restarting construction and proposing international brand cooperations.
 
“Additionally, after years of operation, certain properties are considering upgrading within the same brand portfolio of hotel operators to align with market maturity.”
 
Brand cooperation extends to the residential sector, where developers seek to provide elevated product quality under the branded residence concept, she said.
 
Gasparotti said: “Branded residences, whether in beachfront villas or urban luxury condominiums, are becoming a popular choice globally for developers and buyers. Hospitality services and brand construction standards are believed to add value to residents through enhanced services and increased trust.”
 
In Vietnam, six projects under development could be considered ultra-luxury branded residences, he said.
 
Following the handover of Marriott Grand Marina Saigon and The Ritz-Carlton Hanoi, the recent announcement of the launch of Nobu Residences in Da Nang, Mandarin Oriental Residences in Phu Yen and Da Nang demonstrates continued interest, he said.
 
With the recovery of international tourism, Vietnam has also experienced a resumption in hotel and resort development, he said.
 
In the Asia Pacific region (excluding China), Vietnam is second in the pipeline behind only India.
 
It boasts 191 projects with 49,800 rooms under construction by 2028, making it a significant player in the region’s hotel development landscape. Nearly three-quarters of the projects fall within the midscale to upscale segment, and nearly 70 per cent are chain-branded.
 
“The ultra-luxury segment is expected to grow exponentially, doubling its base of seven properties. All these properties are associated with long-standing international brands.
 
“Currently the majority of luxury and ultra-luxury properties are concentrated in HCM City, Hà Nội and Phú Quốc, representing 50 per cent of the total luxury properties in Việt Nam.
 
“In the next four years the market also anticipates an increased presence of luxury properties in emerging destinations such as Phu Yen, Sa Pa, Ninh Binh, and Vinh Phuc. These destinations are ideal for luxury travellers for their rich cultural heritage, scenic landscapes, and captivating coastlines." —VNS
 
Read original article here
Newer News
08/11 Automotive support industry strives to become spare part supplier
08/11 Vietnam’s auto industry strives to reach global recognition
08/11 Vietnam Air Cargo Day 2024 Forum takes place for the first time in Hanoi
08/11 Bac Giang promotes service development to attract high-quality FDI
07/11 Foreign investment disbursement hits $19.58b in 10 months
07/11 VN posts trade surplus of US$23.31 billion in 10 months
07/11 LEGO Group nears completion of Vietnam factory, begins test run
07/11 E-commerce opens more doors for Vietnamese enterprises in EU: expert
07/11 Water, waste treatment expos return to HCM City
07/11 Nearly 300 exhibitors join in Vietfood & Beverage - Propack Vietnam 2024
Older News
04/10 Foreign investment surpasses $24.78 billion in nine months
04/10 Domestic steel prices set to rebound in Q4 amid easing pressure from Chinese market
04/10 India initiates anti-dumping investigation into Vietnamese calcium carbonate filler masterbatch
04/10 Positive signals for exports in remaining months of 2024
03/10 Enhancing connections critical to exploiting FTAs: seminar
03/10 SSI: Masan to benefit from Vietnamese stock market upgrade
03/10 Businesses hesitate to invest in the Mekong Delta region
03/10 Vietnam among fastest-growing economies in ASEAN region
02/10 IMF forecasts VN's economic growth to reach 6.1 per cent in 2024
02/10 Innovation: Revolutionising the economic growth
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:02 PM
VN-INDEX 1,252.56 -7.19/-0.57%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.