Hotel market believes in recovery for 2024

Hotel market believes in recovery for 2024

The impact of the new visa policy and stimulus programmes has begun to bring positive effects to the tourism industry, while aiding its recovery prospects.

In the first two months of the year, Novotel Hanoi Thai Ha has seen growth of around 200 per cent hotel occupancy in all segments compared to last year.

Tourist regions with the highest growth comes from three main markets including South Korea accounting for 34 per cent, Taiwan with 18 per cent, and India with 5 per cent of total room rental capacity.

Christophe Pairaud, cluster general manager of Novotel Hanoi Thai Ha and Novotel Suites Hanoi, said, “We believe that the inbound tourism market still has a lot of potential to recover and develop. Novotel Hanoi Thai Ha has strong confidence in the business results of the hotel this year as we have welcome many customers from different markets, especially South Korea, Taiwan, and India.”

According to the Vietnam National Authority of Tourism, over three million international visitors came to Vietnam to travel in the first two months of 2024, an increase of 68.7 per cent over the same period in 2023 and equal to 98.5 per cent of before the COVID-19 pandemic.

The administration expects that with continuous and steady growth, the tourism industry can serve about 17-18 million international visitors and about 110 million domestic visits this year, reaching total revenue from tourism of about $35.4 billion.

Several hotels and resorts have also recorded an increase in the number of guests staying since the beginning of the year.

According to Imperial Group, Imperial Hotel in the southern province of Ba Ria-Vung Tau has welcomed about 1,000 guests every day since late January.

Meanwhile, Hoiana Resort & Golf in the south-central province of Quang Nam also recorded 3,000 bookings in mid-February. Since the end of last year, this resort has put 300 more rooms into operation, bringing the total number of rooms to more than 1,200.

The number of guests staying at Hoiana Resort & Golf in 2023 reached more than 165,000, an increase of about five times compared to the previous year.

Savills Hotels director Mauro Gasparotti said, “The resort real estate market is recording many positive signs as demand is gradually recovering at a stable pace, including both domestic and international tourist markets, helping to strengthen confidence in the increasingly strengthened resort industry."

According to a Savills survey, there are currently many projects in the process of restarting in popular destinations such as Hanoi, Danang, Quy Nhon, and Phu Yen. Danang, with the advantage of connecting infrastructure and diverse tourism products, is expected by Savills to continue leading the recovery process.

In Hanoi, three top projects that will enter the hotel market in 2024 include Tu Hoa Palace with 207 rooms, Fusion Suites with 238 rooms, and My Dinh Pearl with 500 rooms.

In 2024-2026, Hanoi is expected to boast over a dozen projects with around 2,750 rooms in operation. Domestic operators account for 70 per cent of future supply, with over 1,900 rooms across seven new ventures. Meanwhile, international operators will open six new projects, equivalent to over 800 rooms.

Along with the increase in the number of guests, the number of rooms and revenues also improved.

According to real estate consultants JLL Vietnam, room rental capacity in Ho Chi Minh City has increased by 17.8 per cent. Revenue per available hotel room (average daily rate - ADR) reached $75, up 59 per cent over the same period. The average room price reached $113, an increase of 16.3 per cent.

In Hanoi, the hotel market also indicates a stellar recovery, reaching an ADR of $117, approaching the pre-pandemic level of $119. The average room price in Hanoi increased 58.4 per cent and the average room capacity also increased by about 20 per cent compared to 2022. The Danang hotel market also recorded an average increase of 119.3 per cent compared to 2022 and ADR reached $137, up 21.5 per cent on-year in 2022.

A survey of businesses in the tourism and hotel industry by Vietnam Report in December indicated that two-thirds of businesses thought that the industry's prospects in 2024 would be more positive, and about 86 per cent believed that there would be growth in both profits and visitors.

Hotel market forecast to recover after tourism reopening After a long hiatus caused by the COVID-19 pandemic, Vietnam’s tourism is gradually reopening with the resumption of international flights, which is considered a positive factor helping recover the hotel market.

Hotel market enticing more overseas investors The recovery of the Vietnamese hotel market since the pandemic was brought under control has led many foreign investors as well as international management groups to latch onto the new prospects before it is too late.