Savills Vietnam, a research unit, has recently released its market report for 2023. In that year, Vietnam welcomed 12.6 million international visitors, nearly triple the number in 2022 and surpassing the 2023 target of 8 million visitors. However, there is still room for development, as this figure is only 70% of the 2019 statistics.
South Korean tourists dominated with 3.6 million arrivals, followed by China with 1.7 million and Taiwan (China) with 851,000. Other top markets included the United States, Japan, Malaysia, Cambodia, Australia, and India.
Hanoi received 24 million visitors, a 28% increase from the previous year. International visitors reached 4 million, marking a 167% year-on-year increase, while domestic visitors reached 20 million, up by 16%.
According to the Savills Vietnam report, revenue from accommodation activities in Hanoi reached VND 10 trillion in 2023, a 106% increase compared to the previous year and approaching the VND 11 trillion milestone in 2019.
In the fourth quarter, rental capacity reached 64%, a 15% year-on-year increase. The average rental price in Hanoi was VND 2.9 million per room per night, up by 16% from the previous year.
Hotel operations in Hanoi.
In 2023, rental capacity increased by 21 percentage points to reach 60%. The average rental price reached VND 2.7 million per room per night, reflecting a 28% year-on-year increase. Some 5-star hotels, such as Intercontinental Hanoi Westlake and Sofitel Metropole, showed improved operational performance.
Currently, Hanoi has 11,226 hotel rooms. The supply increased by an additional 10% annually from two 4-star projects and four 5-star projects.
According to Ms. Do Thu Hang, Senior Director at Savills Hanoi, there will be an additional 13 hotel projects with 2,746 rooms entering the market in the next two years. This year, three hotels are expected to start operations, including Dusit Hanoi – Tu Hoa Palace, Fusion Suites, and My Dinh Pearl.
Regarding international guest accommodation, the serviced apartment segment also recorded a high occupancy rate of 83%, a 2% increase from the previous year. Grade A apartments had the best growth, reaching 81%. The rental price was VND 580,000 per square meter per month.
Mr. Matthew Powell, Director of Savills Hanoi, believes that serviced apartments experienced stable operations in 2023. FDI supply from large projects and infrastructure improvements will positively impact this segment’s demand in the future.
In terms of serviced apartment supply, an additional 3,821 units will be available. This year, two projects expected to commence operations are Parkroyal Serviced Suites Hanoi and Fusion Suites. West Lake will account for 63% of future supply with 2,423 units, being a popular area for foreigners due to its amenities, dining options, entertainment, schools, hospitals, and parks.
@Vietnamnet
Source: Vietnam Insider