Rental price of 5-star hotel declines in Q4/ 2011

In its survey recently, Colliers International reported that the average rental price at 5-star hotel in the fourth quarter of 2011 declined to $230 per night.
In comparison with Q3 2011, the average rental price of 3-5 star hotels saw a significant decline in all classes, by 16.8 percent, from $182 per night to $151.4 per night, indicating the impacts of economic difficulties in the operations of high-class hotels.

The average rental charge at 5-star hotels has fallen from $331 per night to $233.24 per night, down 2.7 percent, 3-star hotels from $76 to $72.5 per night, down 4.6 percent.

However, the average rental price of 4-star hotels saw an increase of 6.3 percent from $139 per night to $148.45 per night.

In December 2011, the average rental price of 3-5 star hotels was at $151.4 per night, 5-star hotel at $233.24 per night and 4-star hotel at $148.45 per night and 3-star hotel at $72.5 per night.

Colliers International said that from now until 2016, many projects of 4 and 5 star hotels such as Times Square, Eden A, Meridian, Pullman and Liberty Que Huong once completed will increase the total supply of luxury hotels in HCM City to nearly 16,000 rooms.

Currently, the total supply of luxury hotels in HCM City is 10,576 rooms, in which the total supply of 5-star hotels is 4,649 rooms, 4-star at 1,621 rooms and 3-star hotel at 4,125 rooms.

In Q4 2011, 5-star hotel of Nikko Saigon has started operation in December 2011, providing 334 hotel rooms.

The average capacity of 3-5 star hotels reached about 73 percent, the ratio of vacancy room of 5-star hotel was the lowest when the average using capacity of 5-star hotel reached 80 percent, 4-star hotel at 75 percent and 3-star hotel at 65 percent.

The average rental capacity in Q4 2011 increased by 5.5 percent compared to Q3 2011, from 67.5 percent to 73 percent. Of which, the capacity of 5-star hotel was estimated to increase by 10 percent from 70 percent to 80 percent, 4-star hotel surged 2.6 percent, from 72.4 percent to 75 percent and 3-star hotel up 5 percent, from 60 percent to 65 percent.

The total number of international tourists coming to Vietnam soared nearly 20 percent.

The volume of foreign arrivals to Vietnam in 2011 reached over six million people, up 19.1 percent from the same period of previous year. Of which, tourists reached 3.65 million people, up 17.4 percent on year, arrivals for work purpose at one million people, down 2 percent and arrivals to visit relatives at one million people, up 75.5 percent on year.

Arrivals to Vietnam from China reached 1.4 million people, rising 56.5 percent on year, Korea at 536.400 people, up 8.2 percent, Japan at 481,500 people, up 8.9 percent, the US at 439,900 people, up 2.1 percent, Cambodia at 423,400 people, up 66.3 percent, Taiwan at 361,100 people, up 8.1 percent, Australia at 298,800 people, up 4.2 percent, Malaysia at 233,100, up 10.3 percent and France at 211,400 people, up 6.1 percent.

The number of international travellers coming to HCM City in December 2011 was estimated to reach about 350,000 people, up 28 percent on year. In 2011, HCM City targeted to welcome about 3.5 million international tourists, up 13 percent on year. – Vietbiz24

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market