A stellar performance of the five-star hotel segment helped lift the average occupancy in Hanoi
by four percentage points (ppts) quarter-on-quarter (q-o-q) and 10 ppts year-on-year (y-o-y), Savills Vietnam
has said in a report.
The average room rate (ARR) increased 21% q-o-q and 41% y-o-y due to increases across all segments. The revenue per available room (RevPAR) went up 28% q-o-q and 64% y-o-y.
The supply in hotel market was relatively stable q-o-q but slid 4% y-o-y. Over 900 rooms are expected to be launched this year.
Statistics showed that 1.3 million foreign tourists arrived in Hanoi in the first quarter, up 10% y-o-y. This momentum, in tandem with limited supply, will keep occupancy and ARR high in the time to come.
Strong growth in foreign visitors have made the shortage of hotel supply in Hanoi appear more acute over the past years.
Although the number of three- to five-star hotels across the country doubled between 2011 and 2016, around 1,200 rooms were launched from several projects in Hanoi in the same period, according to Director General of the Vietnam National Administration of Tourism (VNAT) Nguyen Van Tuan.
Strong Supply in Apartment Segment
The total primary stock of apartments in Hanoi in the quarter increased 12% q-o-q and 49% y-o-y to 24,160 units. The new supply totaled 9,220 units, down 10% q-o-q but up 39% y-o-y, Savills said.
Around 6,520 sales took place, decreasing 2% q-o-q but increasing 16% y-o-y. The absorption rate was down four ppts q-o-q and eight ppts y-o-y to 27% due to the large supply.
Developers are expected to launch approximately 40,800 units in the market this year, with the majority being Grade B from Ha Dong, Hoang Mai, Tu Liem and Thanh Xuan districts.