Saturday, October 5, 2024 Vietnam’s hotel market sees strong growth, with a 15% surge in RevPAR and rising occupancy rates, driven by international tourism recovery, reports Savills Hotels . The hotel industry is witnessing remarkable expansion, with notable improvements in Revenue Per Available Room (RevPAR), according to Savills Hotels, a leading hospitality advisory and investment firm. In the first seven months of this year, the RevPAR index experienced a 15% increase compared to the same period last year, one of the highest growth rates in Southeast Asia.
This impressive performance is mainly driven by a sharp rise in occupancy rates, particularly in popular beach destinations such as Nha Trang-Cam Ranh and Phu Quoc, where occupancy has surged by 40-50% due to a significant recovery in international tourism. Despite the boost in occupancy, average room rates remain 3% lower than last year, largely because properties in key areas like Nha Trang and Phu Quoc, which opened after the pandemic, are still establishing themselves in the market. The first wave of branded hotel development in Vietnam began between 2008 and 2010, as several developers signed management agreements with international hotel chains to secure a reputable brand presence.
These agreements, typically lasting 10 to 15 years, are now nearing expiration, providing developers with the opportunity to renew their contracts or explore other options. In some cases, renovations and rebranding to higher-tier bran.
