The average occupancy rate of Danang hotel market was 73 per cent in the second half of last year, with five-star hotels being the highest performer overall, according to Savills Vietnam.
According to a recent report by real estate agent Savills Vietnam, Danang continues to establish itself as a leading destination for domestic and international tourists.
In 2017, Danang welcomed 6.6 million visitors, 19 per cent higher than the previous year. International visitors increased by 37 per cent to 2.3 million.
Last year's total stock from the 101 three-to five-star hotels was approximately 11,800 rooms. Average occupancy rate was 73 per cent, increasing eight percentage points with five-star being the highest performer overall. It is expected that over 2,300 four-to five-star rooms will come online this year.
Savills' report also shows good performance in Danang condotel market. The total stock was approximately 5,210 units from 14 projects. Ngu Hanh Son and Son Tra districts led with an 85 per cent share from 12 projects.
Three new projects and one expanded in next phase provided 830 units to the market, mostly from a project by The Empire Group. The absorption rate was 73 per cent in the second half of last month. It is expected that eleven new projects will supply 8,320 units this year.
There was also an improvement in the performance of apartment market in Danang. Total apartment stock was 4,340 units from 18 projects. New projects provided 770 units to the market. Son Tra still led the primary market with a 60 per cent share.
The average absorption rate was 97 per cent with sales in the second half of last year being eleven times higher than the same period of 2016. More than 610 units are expected to enter the market this year.
In the last six months of 2017, no new supply and stable demand for second-home villas resulted in market-wide absorption of 86 percent. Developer reputation, guaranteed returns and beach proximity were key success drivers.
Total villa stock was approximately 800 dwellings from 15 projects. Ngu Hanh Son district was the largest supplier, representing a 91 per cent share from 12 projects. This year, 45 dwellings are expected to come online.
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