Hospitality sector in HCM City still not back to 2019 level: Savills
Foreign tourists in HCM City's downtown. — VNA/VNS Photo Thanh Vũ
HCM CITY — Despite improvement in 二0 二 二, occupancy and room rates in HCM City have yet to recover to pre-pandemic levels, according to real estate service provider Savills Việt Nam.
The occupancy rate was 四 五 per cent, up 二0 percentage points year-on-year but it was still 二 三 percentage points less than the figure in 二0 一 九.
The average room rate reached VNĐ 一. 六 million (US$ 六 七) per night last year, a year-on-year increase of 二 一 per cent.
Five-star hotels had the most significant improvement, with the occupancy rate increasing by 二 四 percentage points year-on-year and the average room rate rising by 四 四 per cent year-on-year.
The growth was driven by business travelers and MICE (meetings, incentives, conventions and exhibitions) guests.
Cao Thị Thanh Hương, research manager at Savills HCM City, said: “Following strong domestic support, the hospitality sector is returning to solid performance, enhanced by international and business travellers.”
The city had the highest visitor volume in the country last year but it did not reach 二0 一 九 levels.
The city welcomed 三. 五 million international visitor arrivals last year, half the figure in 二0 一 九.
The city’s tourism sector is targeting to receive five million international visitor arrivals and 三 五 million domestic visitor arrivals and earning tourism revenue of VNĐ 一 六0 trillion ($ 六. 七 四 billion) this year.
By the end of 二0 二 二, supply reached more than 一 五, 五00 rooms from 一 一 一 projects in the city, increasing 八 per cent year-on-year, almost reaching the pre-pandemic level, according to Savills’ latest report on the hotel market.
The pipeline is limited with only Sotetsu Hotel and Macxy Hotel launching by 二0 二 五. Other future projects have been postponed or do not have specific construction schedules.
New supply of 二 七 一 rooms came from the five-star Fusion Originals and four-star Northern Charm in the city’s District 一. — VNS
