Vietnam Domestic Hotel Industry, record growth in visitor arrivals,
hotel occupancy and room rates and an increase in interest from major
hotel groups all occurred in 2006, according to a new survey conducted
by financial and accounting firm Grant Thornton Vietnam.
Duxton hotel- Hotels in Vietnam
Five-star hotels in Hanoi and hotels in Ho Chi Minh City recorded
significant increases in average room rates and occupancy rates last
year, the survey said.
Northern Vietnam remained the market leader in terms of occupancy with
over 70% in 2006, according to Grant Thornton=92s annual Vietnam Hotel
Survey 2007.
Grant Thornton surveyed 29 hotels with 3,946 rooms in different cities
in three main regions of the country during 2005 and 2006.
Vietnam Domestic Hotel Industry, this third survey by the firm serves
as an overview of hotel industry market and reports how Vietnamese
hotels are performing.
The survey showed a price increase in the average room rate of 7.7%,
from US$55.78 in 2005 to $60.06 per room night in 2006.
Average prices saw an increase of 21.1% in the North and 15.7% in the
central region while the South saw no change.
Vietnam Domestic Hotel Industry In 2006, average occupancy and price
of five-star hotels were 73.1% and $69.06 per room night,
respectively.
Net income as a percentage of revenue of four =96 and five-star hotels
was 21.1% and 39.7%, respectively, much higher than the 0.4% of three-
star hotels.
Room sales made up more than 60% of total revenues in both 2005 and
2006.
Reservations via the internet, travel agents and tour operators
increased, from 44.76% in 2005 to 57.35% in 2006 (as a percentage of
room sales). A significant decrease occurred in direct reservations,
from 41.21% to 29.80%.
Vietnam Favourite destination
Survey results indicate that Vietnam is becoming a more appealing
destination for Asians and Europeans.
An important trend was the strong 6% increase (from 77% in 2005 to
81.6% in 2006) in international arrivals reported by hotels
participating in the survey.
Foreign visitor arrivals in 2006 reached 3.6mil, of these, 22.7% were
business travelers, and 59.9%, tourists.
East Asia remained the largest international market segment for
Vietnam=92s tourism and hospitality industry, accounting for 38% of
total international arrivals.
Of the 18mil Vietnamese tourists who traveled within the country in
2006, many stayed at luxury hotels, the survey discovered. Domestic
tourists in 2006 generated $2.25bil in tourism revenue.
Grant Thornton said the lack of new hotel development since the Asian
financial crisis had finally caught up with demand, resulting in a
lack of rooms at certain peak times in both Hanoi and Ho Chi Minh City
and particularly around the APEC summit meeting in November of 2006.
This shortage still exists, the firm said.
The survey shows that hotel developers and operators are now showing
renewed interest in the market in the five-star hotel, resort and spa
sectors. Such groups include Kingdom Hotels with the Raffles, 4
Seasons and Movenpick brands, Banyan Tree, Colony Resorts and
Intercontinental.
With the huge volume of monsey being channeled into investment funds
focused on real estate investment in Vietnam, a number of sales of
interest in major hotel properties that took place in the last two
years included the Hilton, Sofitel Metropole and Guoman hotel in
Hanoi, the Duxton and Omni in Ho Chi Minh City, and the Furama in Da
Nang (hotels in Da Nang).
The group Accor Hotels continues to dominate the scene as the group
has the largest number of city hotels and with the Six Senses/Evason
spas/resorts under its management.
VinaLand is the largest hotel investor in the foreign-invested sector,
according to Grant Thornton.
Hotels in Vietnam, hotels participating in the survey are located in
the cities of Hanoi, Ho Chi Minh City, Ha Long, Da Nang, Hoi An, Hue,
Nha Trang, Phan Thiet, Vung Tau and Da Lat.
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