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PROPERTY

Performance

Hanoi Ho Chi Minh City
Occupied Vacant Average Room Rate Occupied Vacant Average Room Rate
Rooms Rooms
12,000 3.0 18,000 2.5
10,000 2.5 15,000
2.0
8,000 2.0 12,000
1.5
6,000 1.5 VND million/room/night 9,000 VND million/room/night
1.0
4,000 1.0 6,000
0.5
2,000 0.5 3,000
0 0.0
0 0.0
Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 2019 2020 2021 2022 9M 2023
Source: Savills Research & Consultancy

and visa-free offerings to boost their appeal.” improvement compared to the 5 per cent lion domestic visitors were also served.
As a newcomer, the challenge for Capella growth recorded at the beginning of the Total revenue is estimated at VND582.6
Hanoi hasn’t necessarily been on the busi- year. There have also been improvements trillion ($24.2 billion).
ness side but how to offer value for money, in other source markets, such as India, Mr. Wong said Vietnam continues to
according to Ms. Loughlin. Thailand, and Malaysia. be a very attractive country, whether for
It is smaller than other Capella-branded The recent extension of visas to 90 business, meetings, or leisure travel.
hotels in Singapore and Bangkok. But Viet- days is also encouraging news. It estab- “Many companies are looking at investing
nam’s capital is still an international market lishes a strong foundation for both leisure in Vietnam or expanding their existing
and customers from Hong Kong (China) and business travelers, allowing them to operating capacity due to its attractive-
and Singapore are coming to Vietnam. In plan their itineraries to Vietnam without ness, large population base, stable gov-
addition, resorts such as Six Senses Con limitations of number of entries. This pol- ernance, and business-friendly environ-
Dao or Amanoi can charge $1,000 a night icy serves as a necessary stimulus to attract ment,” he added. “On the leisure front,
because their beaches are incredible. But a broader range of international clientele, Vietnam is perceived to be a country
for city hotels, it’s been a challenging time. though there is still much work to be that is emerging and a fresh destination
In addition, resort staff have been trained done to facilitate tourism via a faster visa in Southeast Asia, renowned for its beau-
at Four Seasons or Ritz-Carlton, Mandarin process, better immigration procedures, tiful culture, people, attractions, food,
Oriental, JW Marriott, or Park Hyatt. “When and more direct international flights. and history.”
you arrive at a luxury hotel, you know what In October, the number of international Cappella Hanoi will focus on F&B as
international standards there will be, whereas visitors to Vietnam again surpassed the their strength and signature offering. Sher-
we don’t have that level of staff training,” milestone of 1.11 million, according to aton Saigon Hotel & Towers, meanwhile,
Ms. Loughlin added. “We have spent a lot the Vietnam National Authority of has a number of major sustainability proj-
of time training and finding people who Tourism (VNAT); the fourth consecutive ects that it will implement to help reduce
are willing to put themselves through the month Vietnam has welcomed in excess its carbon footprint and drive sustainability
fire, because service at this level is not easy.” of 1 million international visitors. from next year. “We are also looking at
From a research perspective, Mr. Gas- In the first ten months of the year, the new branded offerings as well as enhanced
parotti said the issue lies in the creation of industry as a whole welcomed 10 million technology to improve our guests’ digital
inappropriate products. Some developers international visitors, up 4.2-fold com- experience,” Mr. Wong said. %
hastily entered the market without proper pared to the
planning, leading to properties that lack same period
identity and contribute to oversupply issues last year, cre-
in certain areas. Though there are some ating solid
well-built properties with the right posi- hope about
tioning, there are also many that have pri- achieving the
oritized quantity over quality. target of wel-
He added that while demand is showing coming 12-13
signs of improvement, rising airfares, eco- million inter-
nomic and political instability, and staff national visi-
shortages still pose challenges to recovery tors in 2023
in hospitality. and revealing
the positive
LOOKING AHEAD prospects for
Chinese tourists have been returning the tourism
at a faster pace since the summer of 2023, industry in the
and currently surpass pre-pandemic levels future. In addi-
by 30 per cent. This is a significant tion, 98.7 mil-

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