The hotel market in Ho Chi Minh City is improving.
The hotel market in Ho Chi Minh City is improving.
With many positive signals, experts expect this market in Ho Chi Minh City to continue recovering more strongly in the second half of 2023.
The hotel market in Ho Chi Minh City has improved significantly in 2022, but the occupancy and average room prices are still lower than pre-pandemic levels.
With many positive signals, experts expect this market in Ho Chi Minh City to continue recovering more strongly in the second half of 2023, as countries and territories target the removal of "COVID-free" policies.
According to Savills Vietnam, in 2022, room occupancy reached 45%, an increase of 20 percentage points compared to 2021 but still lower by 23 percentage points compared to 2019.
The average room price reached 1.6 million VND per room per night, up 21% compared to 2021 but still lower by 18% compared to 2019; in which the 5-star segment improved significantly with the average room price increasing by 44%.
In the fourth quarter of 2022 alone, room occupancy reached 62%, while the average room price reached 1.8 million VND per room per night, up 9% compared to the third quarter of 2022.
In 2022, Ho Chi Minh City welcomed nearly 3.5 million international visitors, increasing year-on-year but still lower by 59% compared to 2019.
The number of domestic tourists reached 25 million, up 167% compared to 2021 but still lower by 5% compared to 2019.
The tourism revenue in 2022 reached 120 trillion VND, up 171% compared to 2021 but still lower by 14% compared to 2019.
The city's tourism industry is recovering slowly due to its dependence on international visitors and restrictions on visa policies, as well as the loss of a significant number of tourists from China.
Regarding the hotel supply, according to statistics from Savills Vietnam, by the end of 2022, the supply in Ho Chi Minh City reached over 15,500 rooms from 111 projects, up 8% compared to 2021 and nearly reaching the pre-pandemic level.
Two new 5-star hotels, Fusion Originals and 4-star Northern Charm in District 1, provide a total of 271 rooms.
Future supply is limited, and by 2025, only two hotels, Sotetsu Hotel and Macxy Hotel, will be operational. Other projects are either postponed or do not have specific construction progress.
In the new year 2023, the tourism industry in Ho Chi Minh City aims to welcome 5 million international visitors and 35 million domestic visitors, with total tourism revenue reaching 160 trillion VND. This is also an opportunity for the city's hotel business to continue to improve and recover strongly.
