The Hanoi hotel market is recovering thanks to increasing tourist numbers.

According to data from the General Statistics Office, although Q1 2023 GDP growth has slowed down, reaching only 3.32% compared to the same period last year, the service sector has shown clear signs of recovery with a growth rate of 6.79%. The Hanoi hotel market is experiencing positive recovery due to an increase in both domestic and international tourist arrivals.

International and domestic tourist arrivals to the capital have impacted the rental capacity and financial situation of hotels in Hanoi, according to TTXVN.

Additionally, the Hanoi resort market is also expected to increase significantly.

Statistics from Hanoi’s Department of Tourism show that the city welcomed a total of 8.14 million visitors in the first four months of the year, up 74% over the same period in 2022, including an estimated 6.7 million domestic visitors and 1.44 million international visitors. Total tourism revenue reached VND 30,150 billion, up 2.2 times over the same period last year.

In the Hanoi hotel market, the number of overnight stays increased by 220% per year to reach 1.1 million, including 339,000 domestic overnight stays, up 21% per year, and 712,000 international overnight stays, up 1,400% per year.

The supply of hotels in Hanoi over the past four months reached 10,260 rooms from 17 five-star hotels, 18 four-star hotels, and 31 three-star hotels, up 1% per quarter and per year.

As tourist arrivals have increased, there has been an improvement in rental capacity, with an average occupancy rate of 58%, up 9% per quarter and 35% per year. Increased demand has also led to an increase in average rental rates and average room revenue.

According to TTXVN, Hanoi’s market is expected to see two new projects with a total of 471 rooms in 2023. From 2024 onwards, there are expected to be 66 new projects with 11,123 rooms.

Of the total of 68 new projects, 61% are five-star hotels. Notable projects include L7 Westlake, Dusit Tu Hoa Palace, The Ritz Carlton, Four Seasons, Waldorf Astoria Hanoi, and Fairmont.

Regarding the tourism development trend and the recovery potential of the hotel market in Hanoi, Savills Vietnam said that the city’s hotel market is one of the bright spots attracting foreign investment. Therefore, improving the quality of luxury hotels in Hanoi, expanding the “luxury apartment” product line, as well as 3-4 star hotels in the inner city and surrounding areas are opening up opportunities to increase diversity for tourism products, helping Hanoi’s tourism industry achieve sustainable and effective development.

Source: Kinh te Sai Gon