Growth Disparity in Asia-Pacific Hotel Markets

Savills Hotels said Vietnam's hotel market is seeing strong growth with a 15% rise in RevPAR and rising occupancy rates driven by international tourism recovery. The RevPAR Index was up 15% in the first seven months of 2024, year over year, which is one of the highest growth rates in Southeast Asia. Beach destinations such as Nha Trang-Cam Ranh and Phu Quoc have seen occupancy rates surge. Despite the occupancy boost, average room rates remain 3% lower than last year, largely because properties in areas like Nha Trang and Phu Quoc are still establishing themselves. Savills said the first big round of branded hotel development in Vietnam was in 2008-2019 and the agreement typically lasts 10 to 15 years. Developers now have a choice to renew the contracts or explore other options. Savills said renovations and rebranding to higher-tier brands may be on the horizon. Vietnam is second in the development pipeline, excluding China, behind India with 191 projects underway with 4