HCM City hotels feel the pinch from rising competition
Both occupancy rate and revenue per available room (RevPAR) of hotels in
Ho Chi Minh City fell slightly in the third quarter of this year
due to increase in room numbers and lower demand.
Both occupancy rate and revenue per available room (RevPAR) of hotels in
Ho Chi Minh City fell slightly in the third quarter of this year
due to increase in room numbers and lower demand.
According to a survey by property services provider Savills Vietnam, the average occupancy was 60 percent, down 2 percent from the previous quarter and 5 percent year-on-year.
The average room rate (ARR) was at 1.75 million VND (83 USD)/room/ night, a slide of 1 percent and 6 percent and the lowest rate in the last four years.
RevPAR for all the three grades decreased, with the three-star segment seeing the sharpest drop of 8 percent quarter-on-quarter, followed by 6 percent for the four-star segment, and 2 percent for five-star.
One new four-star hotel and 95 additional rooms in an existing three-star hotel in District 1 entered the market.
As of the third quarter, there were more than 12,100 rooms in 90 hotels, a 2 percent increase quarter-on-quarter and 5 percent year-on-year.
International visitor numbers to the city also reduced, falling 1 percent year-on-year in the third quarter to 892,540.
In the next two quarters, the market is expected to add more than 1,300 new rooms in four hotels, all five-star and located in District 1.
A report released by Grant Thornton on October 16 said the hotel industry in the country as a whole achieved a year-on-year growth of 4.2 percent in RevPAR in the first half to 56.6 USD.
The increase was attributed to an average occupancy growth rate of 4.1 percent and a small increase in average room rate of 0.1 percent, the report said.
The five-star segment achieved a better performance in the period than a year earlier with a significant RevPAR surge of 15.6 percent, mainly due to a rise in occupancy rate of 5.5 percent.
A 0.4 percent decrease in RevPAR for three-Star hotels was attributed to a reduction of 4.1 percent in the occupancy rate.
The four-star segment increased its average rate by 4.7 percent.
Overall, average room rates rose marginally to 88.35 USD.
But they were down by 2.3 percent compared with the full-year average room rate in 2012.
When classifying average room rates by region, the Central and Highlands saw the highest rise of 5.8 percent to 92.20 USD.
The north and south saw declines of 5.3 and 3.4 percent.
Room rates were down 5.9 and 1.8 percent in Hanoi and Ho Chi Minh City.
But Phan Thiet saw a jump of 8.3 percent to 106.95 USD.-VNA
According to a survey by property services provider Savills Vietnam, the average occupancy was 60 percent, down 2 percent from the previous quarter and 5 percent year-on-year.
The average room rate (ARR) was at 1.75 million VND (83 USD)/room/ night, a slide of 1 percent and 6 percent and the lowest rate in the last four years.
RevPAR for all the three grades decreased, with the three-star segment seeing the sharpest drop of 8 percent quarter-on-quarter, followed by 6 percent for the four-star segment, and 2 percent for five-star.
One new four-star hotel and 95 additional rooms in an existing three-star hotel in District 1 entered the market.
As of the third quarter, there were more than 12,100 rooms in 90 hotels, a 2 percent increase quarter-on-quarter and 5 percent year-on-year.
International visitor numbers to the city also reduced, falling 1 percent year-on-year in the third quarter to 892,540.
In the next two quarters, the market is expected to add more than 1,300 new rooms in four hotels, all five-star and located in District 1.
A report released by Grant Thornton on October 16 said the hotel industry in the country as a whole achieved a year-on-year growth of 4.2 percent in RevPAR in the first half to 56.6 USD.
The increase was attributed to an average occupancy growth rate of 4.1 percent and a small increase in average room rate of 0.1 percent, the report said.
The five-star segment achieved a better performance in the period than a year earlier with a significant RevPAR surge of 15.6 percent, mainly due to a rise in occupancy rate of 5.5 percent.
A 0.4 percent decrease in RevPAR for three-Star hotels was attributed to a reduction of 4.1 percent in the occupancy rate.
The four-star segment increased its average rate by 4.7 percent.
Overall, average room rates rose marginally to 88.35 USD.
But they were down by 2.3 percent compared with the full-year average room rate in 2012.
When classifying average room rates by region, the Central and Highlands saw the highest rise of 5.8 percent to 92.20 USD.
The north and south saw declines of 5.3 and 3.4 percent.
Room rates were down 5.9 and 1.8 percent in Hanoi and Ho Chi Minh City.
But Phan Thiet saw a jump of 8.3 percent to 106.95 USD.-VNA
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