Hanoi will have many new hotels managed by international brands.

Mr. Matthew Powell - Director of Savills Hanoi commented that the capital's hotel market still has a lot of potential for short-term recovery. To achieve this goal and create momentum for recovery, from October to the end of 2024, the Hanoi Department of Tourism has implemented a variety of activities to attract tourists.

Hanoi will have many new hotels managed by international brands. (Source: LOTTE)

Among them, the most prominent event is the 2024 Hanoi Tourism Ao Dai Festival and the campaigns to promote the capital's destinations. At the same time, the image of Hanoi tourism is also actively promoted through a cooperation program with the international television channel CNN - this expert cited.

In addition to promoting, Hanoi also focuses on preserving and promoting cultural heritage values. Specifically, the City People's Committee has established a Steering Committee to implement the Project to innovate the management and conservation model of the Huong Son complex (Huong Pagoda) 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.

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. In 2024, Hanoi will 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 Hanoi market is expected to supply 3,035 rooms from 12 new projects. Of these, 5-star hotels dominate with 77% and 4-star projects account for 23% of the supply. These figures promise to contribute to improving the quality of accommodation services in Hanoi.

According to Savills analysis, the 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.

Statistics from Savills Vietnam show that in the third quarter, the Hanoi hotel market had no new projects, and rental prices decreased slightly due to promotional programs to attract guests, in the context of strong domestic tourism promotion.

Current hotel supply remained stable on a quarterly basis with 11,120 rooms from 67 projects. Current supply is mainly concentrated in the inner city area, with approximately 5,500 rooms.

Of these, 5-star hotels accounted for 59%. The supply of 5-star hotels increased by 8% year-on-year, while the supply of 4-star hotels decreased by 7% due to the Eastin Hotel & Residences project being rebranded to Movenpick Living West and moving from 4-star to 5-star. For 3-star hotels, the 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 last 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.

Explaining the current situation of the hotel market reducing rental prices, Mr. Matthew Powell said that the third quarter of each year is usually the low season for tourism and resort activities. Therefore, many hotel projects simultaneously launched incentive programs and stimulus tourism packages with the aim 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 with total tourism revenue in Hanoi reaching about VND81,932 billion - an increase of 18.5% over the same period in 2023. Hanoi also welcomed 21.1 million visitors, an increase of 11.7% year-on-year; of which, international visitors reached 4.4 million, an increase of 40.8% year-on-year and domestic visitors reached 16.7 million, an increase of 5.8% year-on-year.

Although the overall picture of the tourism industry is showing positive signs, in reality, the performance of the hotel market in the third quarter has not really broken through with an occupancy rate of 67%. This rate is unchanged from the previous quarter and increased by 6 percentage points compared to the same period last year.

However, in the coming time, Hanoi is expected to welcome many new hotel projects, most of which will be managed by international brands, which is expected to contribute to improving accommodation services and providing diverse options for tourists when coming to the capital.

Source: https://baoquocte.vn/ha-noi-se-co-nhieu-khach-san-moi-do-cac-thuong-hieu-quoc-te-quan-ly-290734.html