Hotel room rates in HCM City have increased since the fourth quarter of last year to an average of VND 1.80 million (USD 77) per room per night, a rise of nine percent compared to the third quarter and 21 percent up on-year.
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According to a report by Savills Vietnam, despite a rise of eight percent in room supply in 2022 with over 15,500 rooms, rates have increased after the Covid-19 pandemic was brought under control in the city.
Average room rates were VND1.60 million per room per night through the year 2022 while the rates rose to VND1.80 million in the fourth quarter, the report said. "This showed an increase of 21 percent against 2021's figures. Room occupancy reached 45 percent, up 20 percent on year. Room rates of five-star hotels increased by 44 percent on-year, with room occupancy rising by 24 percent”.
Although the rates were still 18 percent lower than pre-pandemic 2019, Savills expected that the market would continue to recover this year following recent China's looser Covid-19 policies.
Room rates of two to three-star hotels around Ben Thanh Market in District 1 rose by 15 percent over the past year, and 4-5-star hotels along Ton Duc Thang, Le Thanh Ton, and Nguyen Hue up by 20 percent from the fourth quarter of 2021.
Chairman of North Stars Asia, Trang Minh Ha, said that room prices had increased following high demand during the year-end festive season.
"We're receiving more tourists as well as welcoming more overseas Vietnamese returning for the Tet Holiday, " Ha said. "High demand has pushed prices up. And the local tourism sector is also improving with positive signals from China."
Statistics from HCM City Tourism Department said that the city received 25 million domestic tourists and nearly 3.50 million foreign visitors in 2022. The modest number of foreign tourists was blamed on ill-considered visa policies.
According to Statista, hotel revenues are expected to rise seven percent a year between 2023-2027, and average revenues are expected to reach USD158 per visitor by 2027, up 0.3 percent a year.
