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Luxury hotels to boom in HCMC

Released at: 11:27, 15/06/2017

Luxury hotels to boom in HCMC

Photo: Vietnam Hotel Association

The Ho Chi Minh City market will mainly focus on the luxury segment in the 2017-2020 period.

by Le Diem

Jones Lang LaSalle (JLL) Vietnam, a global real estate services firm specializing in commercial property and investment management, has released a report on 26 ideal destinations for hotel investment worldwide, including Ho Chi Minh City and Hanoi. In particular, Ho Chi Minh City has made a mark due to the increase in both quantity and supply.

The city is expected to have more than 1,000 new hotel rooms this year, up 30 per cent against 2016. The number of high-end rooms meeting international and domestic standards accounted for 35.4 per cent while those at the medium level accounted for 27.8 per cent.

In the 2017-2020 period, Ho Chi Minh City will focus on the luxury segment, which is to provide 48.4 per cent of supply.

Changes in hotel supply in the city shows that the market is moving forward, according to JLL. It is predicted that by 2020 it will have 3,500 additional rooms.

International arrivals to Ho Chi Minh City reached 5.2 million in 2016, up 10.6 per cent against 2016 and beyond the 8.5 per cent increase expected by the government. During the period from 2011 to 2016, the city recorded a 10.9 per cent compound annual growth rate (CAGR), thanks to its efforts to increase flights, invest more in art programs and festivals, and develop more cultural and ecological tours, while its attendance at international travel events increased.

International visitors to Vietnam primarily come from China, South Korea, Japan, and the US. Ho Chi Minh City continues to promote its image in Japan and is expanding to new markets such as Russia and India, both of which have great potential. International arrivals to the city are expected to reach nearly 6 million this year. Domestic tourists totaled 21.8 million in 2016 and are targeted to reach 24 million this year.

According to Condé Nast Traveller magazine, Ho Chi Minh City is one of the 50 most beautiful cities in the world and is rapidly becoming an international tourist destination, thanks to government promotion efforts as well as improvements in tourist destinations. By continuously upgrading museums and monuments and approving the development of eco-parks and the Saigon Cultural Tourism Village, Ho Chi Minh City’s tourism development strategy to 2030 aims for sustainable tourism development.

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