Vietnamese Hotels Face Occupancy Woes
Skift Take
Vietnam's hotel industry is struggling due to slow tourism recovery, oversupply, and poor planning, despite near pre-pandemic room rates and increased interest in lifestyle and focused service hotels.
Savills Hotels said the hotel industry in Vietnam is lagging amid low occupancy rates though room rates are near 2019 levels in most areas. Savills said the weakness in Vietnam's hotel business is attributed to the slow recovery in tourism markets like Russia and China, compounded by increased supply in coastal destinations since 2020, as many projects delayed during the tourism boom are now coming online. If you feel like Vietnam's tourism, hotel and casino industries have always seemed to underperform expectations, we feel the same way. Savills said the first half of 2024 saw the number of international tourists visiting Vietnam reaching 8.8 million, slightly higher than what it was pre-pandemic but while the demand side has recovered, oversupply in certain destinations to apparent undersupply in other spots like HCM City are impacting results. Savills said things like poor planning on condotels, oversupply and certain markets slow to recover have resulted in a trend of r
