Hanoi
BSc (Hons) Est Man
MRICS
APREA (CREIF)
HCM Hotels |
Friday, 27 February 2009 | |
HOTEL MARKET
HCMC has 171 one to five star hotels with over 11,000 rooms of which nearly 60% or about 6,600 rooms are of 3-5 star standard. It is also home to 10,000 guesthouses, lodges and other accommodation providers. There are 21 three-star hotels and 7 four-star hotels and 10 five-star hotels. HCMC lacked more than 4,000 rooms in 2007 but the demand is estimated to increase by 50% in 2010, meaning that the city will need 14,500 more rooms by then, including 7,000 rooms of 3-5 star ratings. The city’s tourism department calculate the supply on the assumption that from now to 2010, 67 -75% of local visitors and 78 - 80% of international visitors to the city will stay in hotels. The average length of local tourists' stay in HCMC is about 1.5 days, and that for foreigners is 2.43 days. The city has approximately : -
· 3,599 five-star rooms · 1,281 four-star rooms · 1,671 three-star rooms · 3,394 two-star rooms · 2,027 one-star rooms, and · 10,068 other rooms.
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Althouth the number of international arrivals in the city increased 214% from 1.1 million in 2000 to 2.35 million in 2006, the average number of rooms available grew a mere 34% in the period. In 2007 the city welcomed 7.15 million foreign and local visitors, and about 5.06 million of the number needed to stay in hotels. In 2010, the city must provide rooms for about 7.3 million visitors out of the total number of 9.55 million guests coming to the city. Although the city has approved over 2,348 more hotel room the shortage of high-rated hotel rooms will still be around 14,500 standard hotel rooms in 2010 using these projections.
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The HCMC government has approved the 2007-2010 tourism development program, which projects the tourism industry will earn more than USD$2.15 billion in revenue by 2010. This is double the 2006 revenue from tourism services but the city’s tourism department belived the number of international tourists will increase by more than 12.3% a year to more than 3.6 million in 2010. At the same time, the number of domestic tourists is increasing by about 15% a year to reach 6 million.
Star Business Travel Long Term Stay Grand 3 40% 20% 40% Bong Sen 3 60% 40% Palace 3 55% 45% Kim Do 3 70% 15% 15% Oscar Thang Long 3 50% 50% Vien dong 3 20% 75% 5% Riverside 3 15% 60% 25% Chancery SG 3 40% 40% 20% Sai Gon 3 40% 60% Majestic 4 40% 60% Amara 4 60% 40% Rennaissance 5 60% 40% Legend 5 60% 40%
Average stay (days) 5 star 4 star 3 star Average 2.1 2 2.2 Foreign Guests 2.1 2 2.3 Local Guests 2.5 2.6 1.8 Source: HCMC Department of Tourism The hospitality industry in the city earned a record revenue of about USD$1.5 billion in 2007, up 45% year-on-year and 23% higher than the year's target. The average room occupancy was 78% and room tariffs increased strongly. The average room rate for 3-5 star hotels in HCMC increased by 31% year on year, while the rate at 5 star hotels surged 32%. In the report, the department expects to receive three million international visitors in 2008, up 11 % on this year, and USD$1.8 billion in revenue – up 20%. The current rates at 5 star hotels in HCMC start from $140 per day.
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3-STAR ACCOMMODATION
Most of the 3 star hotels were built before 1999 with capacities of less than 100 rooms and are self managed by the hotel. There are about 23 three star hotels with 1,970 rooms and the average occupancy is from 70-80%, even in the low season. Average rates range from USD$30-50 per night with standard facilities.
3 Star Hotels
No. Hotel name Address Dist Rooms 1 Bong Sen 117-123 Dong Khoi Dist 1 131 2 Chancery Saigon 196 Nguyen Thi Minh Khai Dist 3 96 3 Continental 132 Dong Khoi Dist 1 83 4 De Nhat 18 Hoang Viet Tan Binh 130 5 Empress 136 Bui Thi Xuan Dist 1 39 6 Epoch 120 Cach Mang Thang 8 Dist 3 70 7 Grand 8 Dong Khoi Dist 1 107 8 Hai Van Nam 132 Ham Nghi Dist 1 42 9 Huong Sen 66-68-70 Deng Khoi Dist 1 50 10 Kim Do 133 Nguyen Hue Dist I 135 11 Metropole 148 Tran Hung Dao Dist 1 74 12 Mondial 109 Dong Khoi Dist 1 40 13 Oscar 68A Nguyen Hue Dist I 90 14 Palace 56-66 Nguyen Hue Dist 1 140 15 Pastel Inn Saigon 99 Pasteur Dist 1 97 16 Riverside 18-19-20 Ton Duc Thang Dist 1 73 17 Saigon 41-47 Nguyen Du Dist 11 100 18 Saigon Star 204 Nguyen Thi Minh Khai Dist 3 72 19 Vien Dong 275a Pham Ngu Lao Dist 1 109 20 Norfolk 117 Le Thanh Ton Dist 1 104 21 Caesar 34 An Duong Vuong Dist 5 106 22 Dong Khanh 2 Tran Hung Dao Dist 5 76 23 Van Xuan 193 Tran Hung Dao Dist 1 69
Unit size of selected 3 star hotels
Standard Superior Junior Delux Club Suite Double Exec Deluxe Continental - 25-38 50-55 33-43 - 59-80 - 81 - Bong Sen 25 28 - 30 35 - 70 - - Kim Do - 26 34 32 31 - - 60 50 Vien Dong 20 20 - - - - - - 25 RiverSide 28 30 50 32 - 80 - - - Chancery Saigon 32 42 - - - - - - - Saigon Star 26 28 - 36 - - 58 - - Saigon 28 30 - 32 - 48 - - - Pastel Inn Saigon - 24 - - - - - - - De Nhat 20 - - - - - 20 - -
4-STAR ACCOMMODATION
There are 6 four star hotels in Ho Chi Minh City with about 1,275 rooms, most of which were developed before 1999. The number fell in 2007 & 2008 as both SaigonTourist's Majestic & Rex were upgraded to 5 star status. Whilst average daily rates are falling, because there are so few 4 star rooms, they are now taking business from the 5 star properties.
4 Star Hotels
No. Hotel name Address District No.rooms 1 Duxton (ex Prince) 63 Nguyen Hue Dist 1 203 2 Ramana 322 Le Van Sy Dist 3 305 3 Grand 8 Dong Khoi Dist 1 107 4 First-De Nhat 18 Hoang Viet Tan Binh Dist 96 5 Park Royal 311 Nguyen Van Troi Tan Binh Dist 193 6 Saigon Palace 56-66 Nguyen Hue Dist 1 144 1,275 * Majestic & Rex upgraded to 5-star status in early 2007&8 but partially replaced by upgrade of Palace in 2007 from 3 stars.
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Standard Superior Junior Delux Club Suite Double Exec Deluxe Majestic 25-29 30-35 46-67 37-42 - - - - 126-150 Rex 25 44 - 32.41 - - - 43 98 Saigon Prince - 32 53 61 - - - - - Ramana 28 32 32 - - - - 64 - Park Royal 33 37 40 60 - - - - - -
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5-STAR ACCOMMODATION
There are now 13 five star hotels with the 2007 & 2008 upgrades of the Majestic & Rex and 2009 addition of the InterContinental, the majority of which were constructed before 1999, although several that did not open until later: Legend Hotel in 2001; Sheraton Hotel in 2003; and the Park Hyatt Saigon in July 2005. The Windsor was developed in 2003 and opened in 2004.
Operators have had a great few years with occupancies and rentals flying high - much higher than in other regional countries - but that has all come crashing down in 2008/9 with the credit crunch putting a stop to unneceesary business travel and decimating tourists' discretionary spend (especially given the arguous task of getting a Visa). Rents and occupancies are collapsing.
Some 5 star hotels are obviously better than others, if for no other reason than their location, since one is by the airport and the other @China town.
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5-Star Hotel Occupancy rates
No. Hotel name Address District No. rooms 1 Caravelle 19 Cong Truong Lam Son Dist 1 335 2 Legend 2a-4a Ton Duc Thang Dist 1 282 3 New World 76 Le Lai Dist 1 552 4 Sofitel Plaza 17 Le Duan Dist 1 290 5 Renaissance 8-15 Ton Duc Thang Dist 1 349 6 Equatorial 242 Tran Binh Trong Dist 5 333 7 Movenpick 251 Nguyen Van Troi Phu Nhuan 248 8 Sheraton 88 Dong Khoi Dist 1 382 9 Windsor Plaza 18 An Duong Vuong Dist 5 402 10 Park Hyatt 2 Lam Son Square Dist 1 259 11 Majestic 1 Dong Khoi Dist 1 176 12 Rex 141 Nguyen Hue Dist 1 227 13 InterContinental Hai Ba Trung / Le Duan Dist 1 321 4,165
Standard Superior Junior Delux Club Suite Double Exec Deluxe Caravell - 38 - 43 - 67 - 104 - - Legend 37 37 - 37 74 74 - - - - Sofitel Plaza - 36 - - - - - 68 - - Renaissance - - - 32 32 - - - 64 - Equatorial - 32 32 38 32 - - 70 102 128 Sheraton 37 55 - 37 55 - - 53 91 220
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DEMAND & SUPPLY FORECAST
In June 2007 the city's departments and agencies submitted a list of 11 locations for developing new hotels of 4 and 5 star ratings to 2020, most of them in the downtown area. The 11 chosen sites are among 30 locations proposed by the Department of Tourism and other departments. The 11 spots include : -
Some other hot spots under consideration are : -
Because these areas are densely populated, the site clearance, compensation and paperwork would be complicated, the People's Committee said. The city expects to have about 4 or 5 more quality hotels by 2009. The supply is estimated to fall short by some 14,500 standard rooms by 2010 including 7,000 rooms of 3-5 star ratings. There are currently 8 projects to build and expand 4 and 5 star hotels in the city that should be completed prior to 2010 such as the Times Square, the Kim Do complex and the Majestic Hotel.
In mid 2007 Saigontourist set out a target to have around 2,000 more high-end hotel rooms in the next 5 years, bringing to at least 6,000 five star rooms by 2012. The aim is to increase the number of high-standard rooms by 50% within the next 5 years. Work started on the 4 star Grand Hotel upgrade into a 5 star facility. "We are focusing (resources) on projects to expand and build hotels, office buildings and trade centers, with an aim to have at least 6,000 five star rooms in the next 5 years, including rooms at joint-venture projects," he said. The Grand Hotel on Dong Khoi Street is being upgraded at a cost of more than US$20 million, and upon completion in 2009, the facility will have 173 new rooms plus 63 upgraded rooms. Several 4 and 5 star hotels in the list to get facelift in the immediate future include the Majestic, Kim Do, and Continental hotels, which will also be turned into 5 star hotels. Saigontourist plans to spend around USD$50 million to upgrade the Majestic Hotel into a 5 star hotel plus a 27 story office building, while the Kim Do Hotel will also be made a 5 star hotel of over 300 rooms. It is currently also expanding the Rex Hotel adjacent to the City Hall, and building the HCMC Exhibition and Convention Center in Saigon South. SaigonTourist owns many big hotels such as the Majestic, Rex, Grand, and Bong Sen, the company also acts as the local partner in many other big hotel projects such as the Caravelle, the Sheraton Saigon Hotel & Towers, and the New World Saigon. In 2009 the company welcomed around 1.5 million tourists - up 1.6% - and obtained total revenue of nearly USD$325 million – up 13%.
Suspended projects
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Last Updated ( Monday, 04 May 2009 ) |
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