HCMC hotel rates steady

Hotel rates in this southern Vietnamese city will remain stable according to the city’s hotel association even though more rooms came online last year.
The association chairman, Tao Van Nghe, told local media that despite three new five-star hotels due to open later this year, supply and demand for up-market accommodation is balanced and there should be no dramatic changes in rates.
Ho Chi Minh City has 13 five-star hotels with 4,000 rooms. The average occupancy rate closed 2013 at 70% and rates remained at the 2012 level. Additional supply will keep pace with growing demand so hoteliers should be able to maintain the same yield as last year.
The city’s Department of Culture, Sports and Tourism shared the same view stating that last year the average room rate was around US$95.5 per night per room, just 3% from 2012, which was acceptable as there was a 14.5% increase in capacity.
In the three- to five-star hotel categories around 1,606 rooms came on the market. In the five-star segment added 330 rooms, while the four-star category gained 491 rooms and three-star hotels 785 rooms last year.
The number of international tourists visiting Ho Chi Minh City reached 4.1 million last year and should rise to 4.4 million this year.

Sourced: ttrweekly