VietNamNet
Bridge – It now seems to not be the
right time for luxurious hotels to join the market. Despite the big events in
the first and second quarter of 2012, luxurious hotels remain quiet with the
low indexes in the occupancy rate, hotel room rate and revenue.
A lot
of five star hotels have been put into operation recently, including the famous
names like Intercontinental Hanoi Landmark on Pham Hung Road, Grand Plaza Hanoi
on Tran Duy Hung Street, Crown Plaza on Le Duc Tho, Candeo Hotel on Doi Can,
Hotel de L’Opera in the central district of Hoan Kiem.
The
hotels provide some 2000 5-star hotel rooms, well satisfying the demand of VIP
clients who stay in the capital city, according to Dau tu newspaper.
However,
the big guys in the hotel sector have been experiencing tough days due to the
economic crisis, even though the hotel sector was believed to have stable
business potentials in 2007-2008.
According
to Savills Vietnam, a real estate service provider, in the first quarter of
2012, the hotel occupancy rate dropped by five percent, while the hotel room
rate decreased by 7 percent in comparison with the fourth quarter of 2011. The
average hotel room turnover was 815,000 dong, a decrease of 16 percent from the
previous quarter.
Especially,
the decreases were reported in the high hotel business season.
In the
first and second quarters of 2012, a lot of international big events took place
in Hanoi, including the MTA Hanoi 2012, Pacific Energy Conference, or Vietnam
Mining Exhibition 2012, which helped increase the number of domestic and
international travelers to Hanoi by 5-6 percent. However, the number of clients
staying at five star hotels remained modest. In the economic crisis, travelers
tend to stay at 3-4 star hotels, rather than luxurious ones, in order to cut
down expenses.
A
market report released by PetroVietnam Land, a real estate joint stock company
has predicted that the turnover of five star hotels would be unsatisfactory in
the time to come. In principle, the third quarter is considered the low season
for luxurious hotels, when the number of foreign tourists decreases.
Meanwhile,
this would be the high season for domestic traveling, which means that medium
class hotels would prosper.
Regarding
the market prospect in the medium term, analysts have said luxurious hotels
would still have to struggle with difficulties, since more luxurious hotel
complexes would be completed and put into operation.
These
would include the five star 500-room JW Marriot Hanoi, located near the My Dinh
National Convention Center, the Gamuda Berh five-star hotel complex, a part of
the Yen So new urban area in Hoang Mai district, slated for becoming operational
in the time from now to 2014.
Anticipating
the big difficulties in the hotel business, experts believe that more merger
and acquisition (M&A) would be carried out in the sector.
Nevertheless,
PVL keeps optimistic about long term prospect of luxurious hotels. Despite the
big changes in the market conditions and difficulties, hotel owners would still
prosper if they can provide new creative products which fit the tastes of
clients and get adapted to the new circumstances.
Doanh
Nhan has reported the interesting information that 30 percent of the clients
staying in luxurious hotels in Hanoi, including the ones with the room rates of
over 50 million dong per night, are Vietnamese people.
The
figure is really surprising, if noting that even foreign travelers, the main
clients of luxurious hotels, now tend to stay at 3-4 star hotels instead of
5-star hotels to save money.
C. V
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