Hà Nội sees improved performance in hospitality market

A strong recovery in foreign visitor numbers helped the hotel market in Hà Nội achieve positive performance in the first quarter of 2024. — VNA/VNS Photo

HÀ NỘI — Occupancy rates on Hà Nội’s hotel market reached 65 per cent in the first quarter, increasing by 1 percentage point quarter-on-quarter and 7 percentage points year-on-year, according to Savills Việt Nam’s report on the Hà Nội real estate market in the first quarter, released in Hà Nội on Tuesday.

The average room rate increased by 2 per cent quarter-on-quarter and 11 per cent year-on-year. Movenpick Hà Nội (four-star hotel) recently resumed its operation after renovation, which supported this increase.

“Tourism metrics across the board continued to improve, in many cases eclipsing the pre-covid benchmarks. With the closure of less viable stock, the sector appears in good shape,” said Troy Griffiths, Savills Việt Nam’s Deputy Managing Director.

In the first quarter, the number of foreign visitors to Việt Nam reached 4.6 million. South Korea was the primary source market with over 1.2 million visitors, a 150 per cent increase year on year. Following it was China with nearly 890,000 visitors, six times higher than the first quarter of 2023. Other notable source markets included Japan, Malaysia, Australia, Thailand, Cambodia, India and the US.

Of which, the number of visitors to Hà Nội in the first quarter of 2024 reached 6.5 million, increasing by 11 per cent year on year. Foreign visitors accounted for 1.4 million, up by 40 per cent year on year, and domestic visitors numbered 5.1 million, up 5 per cent year on year. However, there is room for improvement as this figure was 87 per cent of the 2019 level.

This report also stated that in the first quarter, the stock of 11,120 rooms from 67 projects fell by 1 per cent quarter after two projects were no longer graded three-star in this quarter. However, this stock rose by 8 per cent year on year with two four-star and four five-star projects officially graded in 2023.

This year, two new projects will enter the capital city’s market. From 2024 to 2026, 2,896 new rooms are expected across 13 projects. Nine five-star projects will supply 76 per cent of future supply, while four-star projects will supply a 24 per cent share. No three-star projects are expected in the next three years.

The majority of new projects are inner city with 1,732 rooms from eight projects, equivalent to a 60 per cent share. Of which, seven international projects will supply 1,177 rooms, with the most notable operator being Hilton, accounting for 25 per cent, and Fusion with 17 per cent.