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International hotel brands arrive in Hanoi as tourism grows

Released at: 15:35, 13/07/2017

International hotel brands arrive in Hanoi as tourism grows

Photo: InterContinental West Lake Hanoi

Higher international arrivals catch eye of international hotel groups, according to JLL report.

by Doanh Doanh

International arrivals to Hanoi reached a record 4 million last year, an increase of 21 per cent compared to 2015. Around 3,000 rooms in 12 hotels are due to open in the capital, with most of this new supply in the upscale segment, which will support increasing corporate demand, according to the Spotlight on the Accommodation & Tourism Industry report from JLL.

International operators IHG, Pan Pacific, Accor, Hilton, and Marriott currently have their hotel brands in the city. In contrast to Ho Chi Minh City, there are very few domestically-operated hotels in the upscale and luxury segments, with the Apricot Hotel, a boutique luxury hotel located just to the west of Hoan Kiem Lake one of only a few to compete with international brands on average room rates. The majority of locally-operated hotels cater to the midscale and budget segments, especially in the popular Old Quarter, which is dominated by low cost and backpacker accommodation.

JLL experts identified Samsung as a major driver of corporate room demand. The South Korean electronics giant produces almost half of its smartphones at two factory complexes in Bac Ninh and Thai Nguyen provinces, near Hanoi. It has invested $14.5 billion in Vietnam to date, according to the Vietnam Association of Foreign Invested Enterprises, or 10 per cent of the country’s total foreign investment over the last three decades.

There does, however, appear to be an element of dependence on Samsung from selected Hanoi hotel owners, with some accommodation operations thought to generate as much 80 per cent of their total room nights sold from the group. To achieve sustainability, diversification of room night sources will be key as the market continues to mature.

Local government authorities have recently called on potential investors to focus on further developing the existing tourism areas of West Lake and Red River in Hanoi, which comes on the back of ongoing plans to establish an exclusive tourist zone in Dong Anh district.

 

Project Name

Planned year of opening

Positioning

No. of Rooms

Novotel Ciputral Hanoi

2017

Midscale

250

Mercure Hanoi

2017

Upscale

100

Novotel Hanoi Thai Ha

2017

Midscale

345

Somerset West Point Hanoi

2017

Upscale

247

Somerset West Central Hanoi

2018

Upscale

252

Park Hyatt Hanoi

2018

Luxury

300

Westin Hanoi

2019

Upscale

212

InterContinental Hotel Landmark 72

2020

Luxury

359

Holiday Inn Hanoi Dong Da

2020

Upscale

300

Hilton Hanoi West Lake

2020

Upscale

240

DoubleTree by Hilton Hanoi West Lake

2020

Midscale

370

Four Seasons Hanoi

2020

Luxury

100

Vietinbank Tower

2020

Upscale

N/A

Source: JLL, July 2017

 

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