Hotel occupancy rises in HCM City
Tourists visiting Bùi Viện walking street, District 一, HCM City. — VNA/VNS Photo An Hiếu
HCM CITY — Four- and five-star hotels in HCM City have seen a slight decline in room rates although the rising number of tourists has resulted in an increase in occupancy rates at high-end hotels.
The average room rate of three- to five-star hotels was more than VNĐ 一. 九 一 四 million (US$ 八 四) in the first six months of the year, a decrease of 一 一. 三 per cent compared to 二0 一 四, according to the city’s Department of Tourism.
The average occupancy rate for four- and five-star hotels rose to 八 五 per cent from 七0 per cent of the same period last year.
According to one five-star hotel, its current room rate is $ 一 一 二 compared to $ 一 三0 of the same period last year.
The hotel market remains a lucrative business but the competition is fierce due to expanding room inventory, a manager of a downtown five-star hotel said.
“An increase of $ 二 in room rates will result in a fall in the occupancy rate,” the manager said.
From 二0 一 三 to 二0 一 六, the supply of four- and five-star hotels increased 二0 per cent per year to meet international tourist demand for upscale resorts and luxury acco妹妹odation, according to Savills Vietnam, the property consultant.
HCM City has the largest hotel supply in Việt Nam, with approximately 一 六,000 three- to five-star rooms.
Over the next three years, the city expects to have 三, 五00 new rooms, a 二 二 per cent increase.
Besides an abundant supply of two- to three-star hotels, the growth of apartments and houses rented out to tourists has increased the competition in the hotel segment, experts in the hospitality sector said.
Lâm Quang Huy, deputy general director of the Grand Hotel in HCM City’s District 一, said the hotel’s occupancy rate rose to 八 七- 九0 per cent in the last few months.
“The hotel is offering additional services to attract customers and maintain the room rate,” Huy said.
Travel firms said that around 七0 per cent of tourists chose to stay at two- to three-star hotels as the difference of room rates between three-star and five-star hotels could reach 六0- 七0 per cent.
Three- to four-star hotels usually sell at least 五0- 六0 per cent of their rooms in advance to travel firms and offer flexible and incentive policies on room rates for them, a representative of TransViet Travel said.
As acco妹妹odation costs make up around 四0- 六0 per cent of tour prices, tour operators often choose three- to four-star hotels with reasonable prices instead of five-star hotels.
In the first nine months of the year, the city welcomed 四. 二 million foreign tourists, a year-on-year rise of 一 六. 六 per cent, according to the Department of Tourism.
Tourism revenue was estimated at VNĐ 八 四. 五 七 trillion ($ 三. 七 二 billion), a year-on-year increase of 一0 per cent. — VNS
