Hanoi: Hotel rental prices decrease, tourism grows positively

DNVN - Savills believes that the Hanoi hotel market in the third quarter of 2024 will have no new projects, rental prices will decrease slightly due to promotional programs to attract guests, in the context of strong domestic tourism promotion. The tourism industry has recorded positive growth.

According to Savills' Q3/2024 report, the Hanoi hotel market recorded no new projects. The current supply of the hotel industry remained stable on a quarterly basis with 11,120 rooms from 67 projects. The current supply is mainly concentrated in the inner city area, with about 5,500 rooms.

Of which, 5-star hotels accounted for 59%. 5-star hotel supply increased by 8% year-on-year, while 4-star hotel supply decreased by 7% due to the Eastin Hotel & Residences project changing its brand to Movenpick Living West and moving from 4-star to 5-star. For 3-star hotels, supply decreased by 3% year-on-year due to the de-rating of A25 Asean and Minh Cuong projects.

The average rental price in the quarter reached VND2.7 million/room/night, down 2% compared to the previous quarter. The 5-star segment also recorded a decrease of 2% quarter-on-quarter and 1% year-on-year. Meanwhile, room rental prices at 4-star projects increased slightly by 2% quarter-on-quarter and 1% year-on-year.

Many hotels launch incentive programs and stimulus travel packages in the third quarter of each year.

Explaining the current situation of the hotel market reducing rental prices, Mr. Matthew Powell - Director, Savills Hanoi commented: "The third quarter of each year is usually the low season for tourism and resort activities. Therefore, many hotels simultaneously launch incentive programs and stimulus tourism packages, with the goal of attracting tourists in the fall as well as responding to the domestic tourism promotion program of the Ministry of Culture, Sports and Tourism".

With stimulus programs, the tourism industry recorded positive growth in the third quarter of 2024. As of the end of September, Hanoi's total tourism revenue reached VND81,932 billion, up 18.5% over the same period last year.

Hanoi also welcomed 21.1 million visitors, up 11.7% year-on-year. Of which, international visitors reached 4.4 million, up 40.8% year-on-year, and domestic visitors reached 16.7 million, up 5.8% year-on-year.

In September alone, Hanoi welcomed 510,600 international visitors, including 360,000 overnight visitors, up 3% quarter-on-quarter and up 32% year-on-year.

Despite the positive signs in the tourism industry, the hotel market’s performance in the third quarter was still not really outstanding, with occupancy at 67%, unchanged from the previous quarter and up 6 percentage points year-on-year. However, the hotel market still has a lot of potential for short-term recovery.

According to Mr. Matthew, from October to the end of the year, the Hanoi Department of Tourism will carry out a variety of activities to attract tourists. Notably, the 2024 Hanoi Ao Dai Festival and campaigns to promote the capital's destinations are also being actively promoted through a cooperation program with international television channel CNN.

In addition to promoting, Hanoi also focuses on preserving and promoting cultural heritage values. The Hanoi People's Committee has established a Steering Committee to implement the Project to innovate the management and conservation model of Huong Son (Huong Pagoda) complex in My Duc district. These efforts play an important role in promoting the sustainable development of the tourism industry, thereby increasing demand for the hotel market.

Savills' Q3/2024 report emphasized that, in the context of tourism stimulus activities gradually creating a stable foundation for the market to recover, the prospect of new supply is also noteworthy. From 2024, Hanoi is expected to welcome 68 more hotel projects, providing about 12,115 rooms. In particular, a 5-star hotel project is expected to be put into operation in 2024, providing an additional 207 rooms.

From 2025 to 2026, the market is expected to supply 3,035 rooms from 12 new projects. Of which, 5-star hotels dominate with 77% and 4-star projects account for 23% of the supply, promising to contribute to improving the quality of accommodation services in the city.

“Hanoi’s inner city is expected to account for 41% of the total new supply, equivalent to 5,027 rooms from 22 projects. International brands such as Hilton, Fusion, Accor and Four Seasons will continue to dominate, managing 66% of the new supply. Meanwhile, the remaining 34% of the new supply will be managed by domestic management units, providing tourists with a wide range of brand choices,” the report said.

Hoai Anh

Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/ha-noi-gia-thue-khach-san-giam-du-lich-tang-truong-tich-cuc/20241018042420053