According to the General Statistics Office, although the GDP growth in the first quarter of 2023 has slowed down, reaching only 3.32% compared to the same period last year, the service sector has shown a clear recovery with a growth rate of 6.79%. The hotel market in Hanoi is experiencing positive recovery due to an increase in domestic and international tourist arrivals.
Capella Hotel, Hanoi. Photo: Booking.com
According to TTXVN, the influx of international and domestic tourists to the capital has had a certain impact on the occupancy rates and financial situation of hotels in Hanoi. Additionally, the resort market in Hanoi is also expected to experience significant growth.
Statistics from the Hanoi Department of Tourism indicate that the city received a total of 8.14 million visitors in the first four months of the year, a 74% increase compared to the same period in 2022. Among them, domestic visitors reached approximately 6.7 million, and international visitors surpassed the figure from 2022, reaching 1.44 million. The total tourism revenue is estimated at 30,150 billion VND, a 2.2-fold increase compared to the same period last year.
In the Hanoi hotel market, the number of overnight stays increased by 220% annually, reaching 1.1 million, including 339,000 domestic overnight stays, a 21% annual increase, and 712,000 international overnight stays, a 1,400% annual increase.
The hotel supply in Hanoi over the past four months also reached 10,260 rooms from 17 five-star hotels, 18 four-star hotels, and 31 three-star hotels, representing a 1% increase quarterly and annually.
The increase in tourist arrivals has led to an improvement in occupancy rates, averaging 58%, a 9% quarterly increase and a 35% annual increase. The growing demand has also pushed the average rental prices and average room revenues upward.
According to the Vietnam News Agency, the Hanoi market is expected to have two new projects with a total of 471 rooms in 2023. From 2024 onwards, there are plans for an additional 66 new projects with 11,123 rooms.
Out of these 68 new projects, 61% are five-star hotels. Notable projects include L7 Westlake, Dusit Thuy Hoa Palace, The Ritz Carlton, Four Seasons, Waldorf Astoria Hanoi, and Fairmont.
Assessing the tourism development trend and the recovery potential of the hotel market in Hanoi, Savills Vietnam stated that Hanoi’s hotel market is one of the bright spots attracting foreign investment. Therefore, enhancing the quality of luxury hotels in Hanoi, expanding the “branded apartments” concept, as well as developing 3-4 star hotels in the inner city and surrounding areas, opens up opportunities to diversify tourism products, contributing to the sustainable and effective development of tourism in Hanoi.