Rich with history, culture and arts, Hanoi ranks as one of Vietnam’s top leisure destinations, pulling in regional and international visitors alike – its 2019 numbers in particular projecting a strong short-to mid-term outlook for the hotel industry, according to tourism market research firm, STR.
International arrivals in 2010 saw just five million visitors, but that number has since tripled to 15.5 million by 2018. Hoteliers are one of the top beneficiaries. In January and February this year alone, Hanoi reported a double digit growth of 10.1% in Average Daily Rate (ADR), with hotel occupancy rising to 77% thanks to a 4.1% jump in demand.
Apart from holidays like Tết (Vietnamese Lunar New Year) which helped push occupancies to new highs, major events such as the two-day North Korea-U.S. Hanoi Summit also saw one of the highest monthly ADR levels ever recorded.
Currently, 224 hotels provide 17,615 hotels in Hanoi. Of these, smaller hotels dominate the market, where most of them offer between 50 to 100 rooms. About 3,000 more rooms are in the pipeline, with less than 1000 rooms expected to open in 2019.
New players that have entered the market since 2017 include InterContinental Hanoi Landmark72, while Four Seasons Hotels and Resorts has in conjunction with BRG Group – Vietnam’s leading private multi-sector business group – announced in end 2017 the building of Four Seasons Hotel Hanoi at Hoan Kiem Lake. Housing 95 rooms and suites, the scenic location will also boast views of the capital’s bustling streets leading to the Old and French Quarters.