High-end hotels record increase in revenue per room, occupancy rates

Saturday, Nov 21, 2015 08:26

A corner of Vinpearl Ha Long Bay Resort. — VNS Photo Nguyen Manh Ha
HCM CITY  (Biz Hub) — Revenue per available room (RevPAR) for four and five-star hotels and resorts showed a sharp increase in H1 compared to a year earlier, rising 13.7 per cent to US$69.1, according to consulting firm Grant Thornton Vietnam.

This was due to an increase in both room rents and occupancy rates — by 6.5 per cent and 3.7 per cent respectively — according to a recent study by the firm that analysed RevPAR by hotel brand.

International brands saw RevPAR increase 8.3 per cent, and domestic brands, 20.1 per cent.

RevPAR of four-star hotels increased by 11.4 per cent to $67, due to an increase in both room and occupancy rates. For five-star hotels it rose by 9.4 per cent to $80.2 due to an increase of 5.8 per cent the occupancy rate though there was a slight decline in room rates.

There was a significant increase of 6.5 per cent in overall average room rates at high-end hotels.

Room rates saw mixed fortunes as four-star hotels showed an upturn of 6.3 per cent while five-star hotels suffered a drop of 2.5 per cent. This was probably due to new supply and increasing competition in the latter segment and the decrease in international arrivals.

There was always a substantial gap between international and domestic brands in terms of average room rates, with the former charging $22 more than the latter ($103.5 vs $80.7) in 2015.

Domestic brands increased their room rates dramatically (by 17.8 per cent).

International brands' occupancy rates decreased by 0.9 per cent.

There was a 16 per cent increase in average room rates in the central and Central Highlands regions to $110.2. In contrast, in the north and south rates decreased by 1.7 and 1.1 per cent to $90.3 and $98.2.

This year Viet Nam had more holidays than previous years, and people took these opportunities to travel. In addition, a domestic tourism stimulus programme undertaken since October 2014 by VNAT contributed to a sharp increase in domestic tourism, resulting in a rise in occupancy rates. — VNS

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