HCM City: The hotel real estate market in Vietnam, particularly in Hanoi and Ho Chi Minh City, is predicted to see a big supply thanks to new projects in the 2024-2026 period, according to Savills Vietnam.
Cao Thi Thanh Huong, Senior Manager, of Savills Ho Chi Minh City’s Research Department, said that HCM City’s tourism targets to attract 6 million international visitors and 38 million domestic visitors in 2024 and earn 190 trillion VND (7.74 billion USD). The tourism industry continues to recover thanks to the return of Asian visitors and domestic tourism demand, hotel market performance mostly resumes to pre-COVID-19 levels.
Currently, the total supply in the southern metropolis is 15,991 rooms from 114 hotels, an increase of 3% year on year. Two international four-star hotels – Ramada Encore Saigon By Wyndham with 70 rooms and Sotetsu Grand Fresa Saigon with 125 rooms joined the market last year.
By 2026, forecasts reveal that four other hotels with 800 rooms will open, while many projects are in the p
lanning stages and have yet to have a specific opening date. Notably, the 5-star Hilton Saigon hotel will open in the first quarter of 2024.
Meanwhile, in Hanoi, in the 2024-2026 period, 13 projects with 2,746 rooms are expected to come into operation including three projects that will start operation in 2024, namely Dusit Hanoi – Tu Hoa Palace with 207 rooms, Fusion Suites with 238 rooms, and My Dinh Pearl Phase 2 with 500 rooms.
Domestic hotel operators are expected to account for 70% of future supply, with 1,919 rooms from seven new projects, 74% of which will be concentrated mainly in the inner city area.
International operators will also open six new projects equivalent to 827 rooms, accounting for 30% of future supply; about 62% of total international supply is in the inner city area.
Troy Griffiths, Deputy Managing Director of Savills Vietnam, said that Hanoi tourism shows good signs of recovery, and is no longer dependent on Chinese tourists.
There are many new projects coming into operation in t
he medium term that will bring remarkable properties into the market.
According to statistics from Savills Vietnam, in 2023, Vietnam welcomed 120.6 million domestic and foreign visitors to hotel stays, an increase of 19% compared to 2022.
The number of international visitors to Vietnam in 2023 reached 12.6 million visitors, three times higher than that of 2022 but just about 70% of that in 2019. The numbers show that Vietnam’s tourism has many avenues to stage a full recovery./.
Source: Vietnam News Agency