Phu Quoc hotel rates rise

09 Jul 2014  2036 | World Travel News

Phu Quoc is among the best performers in terms of hotel performance according to the most recent real estate services report from CBRE.
According to the report, top-tier hotels in Phu Quoc are among the best performers when compared to other coastal cities in Vietnam such as Phan Thiet, Nha Trang, Vung Tau, and Danang and even when compared to the two biggest cities of Hanoi and Ho Chi Minh City.
Revenue per Available Room (RevPAR) in the luxury four-star segment in Phu Quoc recorded rates as high as USD124 per room per night in 2013, while equivalent rates were only USD115.80 at the country’s top resort, Phan Thiet, USD123.20 in HCMC and USD102.27 in Hanoi in a similar category.
The average occupancy rate for top-tier hotels in Phu Quoc was 75%, which remained stable for the last three years.
Small hotels (from 17 to 43 keys) can achieve occupancy rates of 80% upwards. Bungalow-style resorts tend to have higher occupancy rates than block hotels, which reflects the preferences of travellers who visit Phu Quoc. They are mostly holiday-makers and like to stay in a nature-oriented accommodation.
Both luxury four-star and luxury three-star categories obtained average occupancy rates of above 80%, while the standard four-star hotels obtained average occupancy rates of around 60%.
Top-tier hotels in Phu Quoc can achieve an average daily rates (ADR) of about USD180 to USD220 for luxury four-star hotels.
Meanwhile standard four-star hotels that target local guests, can only achieve an average ADR of about USD50 to USD100, even lower than the luxury three-star segment which can achieve up to USD80 on average.
The performance of the hotel market in Phu Quoc is seasonal. Hotels record very high occupancy rates from January to March (high season) before gradually decreasing between May and September (low season).
The occupancy rates pick up again at the beginning of October, which is the start of the high season. Mirroring the changes in occupancy rates, ADR decreases significantly in the low season compared to the high season. The occupancy rate and ADR is often highest in December and January, which coincides with Christmas and New Year, and lowest in June and July when the rain is at its heaviest.
The majority of rooms available in Phu Quoc are local guesthouses and small uncertified hotels.
Out of 100 establishments offering approximately 2,900 rooms in Phu Quoc there are only 15 (with 952 rooms in total) that CBRE classifies as top-tier hotels. This includes four luxury four-star hotels (206 rooms), six standard four-star hotels (580 rooms) and five luxury three-star hotels (166 rooms). There is no five-star hotel in Phu Quoc yet.
Some hotels like MGallery La Veranda or Chen Sea Resort have room and service quality equal to that of a five-star standard, but these hotels have a small number of rooms and lack some of the facilities required for a five-star standard, therefore they are only regarded as luxury four-star hotels. On average, each top-tier hotel in Phu Quoc has around 47 rooms.

Sourced: ttrweekly

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