HCMC lacks enough hotels to support tourism boom

HCMC lacks enough hotels to support tourism boom

VietNamNet Bridge – The demand for hotels in HCMC has been increasing rapidly, prompting investors to pour capital into hotel projects. However, it really is difficult to acquire advantageous land plots to build up hotels.

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of the entire year

All hotels reported satisfactory business results for the initial quarter, with accommodation occupancy rate of over 85 percent, and a available room rate increase. per night

Some hotels raised room rates by several dollars, while a 5-star hotel in the central business District 1 raised the area rate from $120 to $180 on peak days.

According to Savills Vietnam, market analysis firm, the common occupancy rate of 3-5 star hotels in HCMC was 74 percent in the initial 90 days of the entire year, year 6 percentage points greater than exactly the same period last. The accommodation rate was $83 per night normally, by 4 percent up. 

This was the very first time in 3 years that 3- to 5-star hotels raised accommodation rates.

Analysts said that more travelers are arriving at HCMC, as the accommodation supply is short still. Work at home opportunities for investors in the hotel sector are excellent, 3-5 star hotels especially.

The average occupancy rate of 3-5 star hotels in HCMC was 74 percent in the initial 90 days of the entire year, 6 percentage points greater than exactly the same period this past year. The accommodation rate was $83 per night typically, up by 4 percent. 

“Our hotels in HCMC have already been prospering going back several years, not merely now,” said Tran Hung Viet, CEO of Saigontourist. 

“The prospects may also be very good later on as demand keeps rising as the populous city still lacks hotels,” he added.

According to the HCMC Tourism Department, in 2017, the populous city received 6.38 million foreign travelers and 24.9 million domestic travelers. The figures are anticipated to attain 7.5 million and 29 million, respectively, year this, also to 10-11 million and 33-35 million by 2020.are now 20 5-star hotels in HCMC with 6

There,257 rooms, 26  4-star hotels with 3,500 rooms, and 80 3-star hotels with 5,980 rooms.

Realizing the popular, more investors have kicked off hotel development projects. Some build high-end hotels, while some develop hotels connected with shopping condotels and centers. 

According to Bui Ta Hoang Vu, director of the HCMC Tourism Department, with the ongoing projects, the populous city could have 5,000 more 3-5-star hotels. However, that is still insufficient and the town still needs thousands of resort rooms of exactly the same standards.

“The demand keeps increasing in the high-end segment. We shall need 15,000 more 3-5 star hotels within 5-7 years after 2020,” Vu said.

HCMC is really a leading tourism destination with the amount of foreign travelers to the town amounting to 50 percent of total foreign tourists to Vietnam. The growth rate in the real amount of tourists has been around both digits, however the populous city is behind other localities in the hotel growth rate.


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