Vietnam: Hotel market to see strong development: CBRE

Feb 05, 07 | 8:58 am

The demand for hotel rooms will be increasingly high from now to 2020, while supplies will be short, according to CB Richard Ellis, a real estate consultancy and management company. 

There are only some 5,000 3-5 star hotels rooms, and 6,300 1-2 star rooms. Meanwhile, according to CBRE.

Vietnam will need 11,100 3-5 star hotel rooms and 20,000 1-2 star hotel rooms by 2020.  

The main reason behind the dramatically high demand for rooms is the strong development of tourism. There are also other reasons, including the investment attractiveness of Vietnam, which prompts foreign investors to come to Vietnam. 

At the end of the fourth quarter of 2006, the room capacity was 84.28% for five-star hotels, 90% for four-star, and 80% for three-star hotels. Meanwhile, almost all of the 3-5 star hotels were established in the 1990s or early 2000s. 

CBRE’s experts have forecast that the supply of hotel rooms will be short in the next five years, especially high-grade hotel rooms. This will lead to room price increases in the next few years. 

According to CBRE, the room prices in five-star hotels in the third quarter of 2006 were just $90/day, and the rate rose to $130/day in the fourth quarter of the same year.

Source: VietnamNet