The HCMC hotel market has been deeply influenced by the COVID-19 epidemic. However, experts have begun to notice signs of recovery in this segment.

More than 500 hotel rooms in Ho Chi Minh City are temporarily closed with no plans to reopen. (Artwork: The Industry and Trade Newspaper)

The recent Savills analysis report shows that, in the third quarter of 2020, the hotel supply in Ho Chi Minh City reached more than 14,100 rooms from 98 3 – 5-star hotels, the corresponding growth rate is 13% quarter-on-quarter.

This increase in supply mainly came from a new five-star hotel project and 16 reopening hotels.

After the decline in occupancy in the first 6 months of the year, to the third quarter, occupancy has stabilized quarter-on-quarter with a rate of 12%.

The average room rate decreased 10% QoQ to 54 USD / room / night and this is also the strongest drop in the 5-star segment.

Since September 15, international commercial flights to countries in the region have gradually reopened, but guests have been forced to conduct centralized isolation.

The majority of hotels that serve quarantined guests do not max out the total number of rooms due to the availability of some rooms for hotel staff. However, the occupancy for pre-booked rooms still reached 80%.

Room rates at hotels serving quarantined guests are currently 15-80% higher than the average price, including three meals and medical check-up services. The entire market currently has six hotels from all three tiers that have serviced paid quarantine guests.

According to Savills forecast, the supply of new hotels in the fourth quarter will grow slowly. Of which, there are two new 5-star hotels (380 rooms) that can be moved from opening to 2021 and more than 500 rooms are temporarily closed without a specific opening plan.

It is expected that by 2023, HCMC will have about 3,500 rooms from 17 new projects going into operation. In which, District 1 accounts for 74% of the total future supply, corresponding to 2,600 rooms.

(Source: Nguyen Ngoc compiled from Savills report)

Source: vietnambiz.vn – Translated by fintel.vn