Average occupancy of five-star hotels was up four percentage points quarter-on-quarter (QoQ) and 10 percentage points year-on-year (YoY) to 74 per cent.

This was stated in Savills Viet Nam Co Ltd’s quarterly report on Ha Noi’s property market.

The hotel segment performed well in terms of occupancy and price in the first quarter this year, the company said.

Average room rate, the average price of each room sold per day, was up 21 per cent QoQ and 41 per cent YoY due to an increase across all segments.

Revenue per available room was up 28 per cent QoQ and 64 per cent YoY.

Nguoi Dong Hanh online newspaper quoted Do Thu Hang of Savills Ha Noi as saying that the good performance of the five-star hotel segment in the first quarter was partly due to strong growth in the number of foreign visitors to Viet Nam, including to Ha Noi, which received 1.3 million visitors in the first quarter. Meanwhile, supply of five-star hotels in this quarter remained unchanged.

“40 per cent of foreign visitors to Viet Nam would stay in Ha Noi, leading to higher demand for five-star hotels while supply of this hotel segment was unchanged. So, existing five-star hotels in Ha Noi had to operate under full capacity, pushing the average room rate up,” Hang said

According to the Ha Noi Statistics Office, in the first quarter, there were some 1.3 million international visitors to Ha Noi, a YoY increase of 10 per cent.

In 2017, more than 900 rooms will be introduced, Savills Ha Noi said.

The company also commented on the office for lease market, saying grade A offices in central business districts (CBD) continued to perform well in the first quarter.

Total office space was 1,640,000sq.m, increasing 0.3 per cent QoQ and 1.9 per cent YoY.

One Grade A project entered the market, supplying some 5,200sq.m of office space.

Average rents decreased 0.2 per cent QoQ but increased 1.2 per cent YoY. Average occupancy was up slightly. Grade A projects in non-CBD witnessed weaker performance compared with their CBD counterparts.

In 2017, five new mostly Grade B projects will supply some 158,400sq.m. Future supply will remain concentrated in the west and secondary areas. — VNS