In its recent report, Savills Vietnam, which provides comprehensive property services, said the hotel market had seen the lowest average room rate in the last five years due to a continuous increase in supply and fierce competition in the market.
For the second quarter of the year, the average room rate dropped 5% compared to the first quarter and 3% year-on-year to VND1.6 million (US$78) per room per night.
According to the report, the city in the second quarter added 540 rooms in the 3-star segment with six new and one refurbished hotels. The 5-star segment had 446 additional rooms from an existing hotel and an upgraded hotel.
As of the end of the second quarter, the city had a total of 106 hotels supplying 13,800 rooms, increasing 6% quarter-on-quarter and 10% year-on-year.
In the first quarter, 3- to 5-star hotels had a soft performance year-on-year.
The average occupancy was 70%, up 2 percentage points quarter-on-quarter but down 4 percentage points year-on-year.
All three grades incurred a year-on-year decrease in occupancy.
The 4-star segment had the highest occupancy drop of 6 percentage points. The 3- and 5-star segment decreased by 4 percentage points each.
The average room rate was VND1.8 million (US$82) per room per night, down 5% quarter-on-quarter and 7% year-on-year.
In the central region, in the first quarter, the average room rate of hotels in Danang City dropped 5% against 2014 to VND1.75 million per room per night, while the revenue per available room (RevPAR), a standard industry measure of room utilisation and return, showed a 12% decrease.
The overall occupancy decreased 4 percentage points against 2014 to 48%.
Fifty-six 3 – to 5- star hotels supplied about 6,450 rooms, up 7% against 2014.
According to the 2015 Vietnam Hotel Survey of 60 4- to 5-star hotels conducted by the UK-owned audit and consultancy firm Grant Thornton Vietnam from March to June, RevPAR experienced a slight decrease of 1.8% from US$60.42 in 2013 to US$59.31 last year.
The decrease was attributed to a drop of 2% in average occupancy, it said.
Data breakdowns showed that while average occupancy rates of 4- and 5-star hotels rose 6.7% year-on-year in Hanoi, the rates fell 6.7% compared with the previous year in Ho Chi Minh City.
Tourism decline hits HCM City hotel market
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