Hanoi, HCMC hotel tariffs increase by double digits

By Ngoc Diem    April 5, 2024 | 11:00 pm PT
Hanoi, HCMC hotel tariffs increase by double digits
A view of downtown HCMC, where there are numerous hotels. Photo by VnExpress/Quynh Tran
The recovery in tourism drove hotel prices in Hanoi and HCMC up by double digits last year, a recent report by real estate consultancy Savills said.

It said average room rates in Hanoi reached VND2.7 million (US$108) per night.

The occupancy rate was 60%, up 21 percentage points from the previous year, while revenues were VND10 trillion, nearly equal to those of 2019, the year before the Covid outbreak.

In HCMC, the average room rate was VND2 million and occupancy was 63%. By December the rates had increased 11% year-on-year.

Tourists tended to prefer five-star hotels, with this segment accounting for 45% of rooms rented in. It also saw the best recovery, with the average rate increasing by 14% to VND2.9 million per night. Meanwhile, the rates of many other markets in the region such as Tokyo and Osaka in Japan decreased by 34% and 42%.

Mauro Gasparotti, director of Savills Hotels Asia-Pacific, said hotel room rates rose because Vietnamese tourism is on the recovery path.

In 2023 Vietnam had nearly 121 million tourists, including 12.6 million foreign visitors, three times the 2022 number and easily surpassing the target of eight million.

Gasparotti said tourism activities in urban areas such as HCMC and Hanoi recovered faster than coastal destinations, helping room rates nearly reach pre-pandemic levels.

A recent survey by the Vietnam Report Joint Stock Company found 78% of tourists willing to pay more for accommodation.

The survey also found that nearly 67% of tourism businesses expect things to improve this year, with 85% expecting growth in profits and visitor numbers.

Domestic operators are expected to account for 70% of the supply, with the majority concentrated in urban districts.

In HCMC, four new hotels with 800 rooms are expected to open by 2026.

In the Asia-Pacific, many other markets also saw hotel room rates rise thanks to a recovery in international tourism last year.

Hong Kong topped with room rates rising by 53%. It benefited from mainland Chinese tourists starting to travel again, according to Savills.

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