Due to the new ban on international travelers and rising concerns domestically, hotel occupancy in the first three weeks of March dropped dramatically to a single digit in many destinations within Vietnam.
More competitive land cost as well as lower occupancy rate are making emerging industrial areas in surrounding provinces become more attractive to investors and developers.
The rapid growth of Airbnb and condotels is posing significant challenges to traditional hotel business in Vietnam.
Hoteliers in Khanh Hoa province are reducing room rates as they have been facing with a glut of rooms that leads to lower occupancy.
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.
The hotel sector of Ho Chi Minh City (HCMC) recorded an occupancy rate of 76 per cent, while the villa and townhouse segment witnessed a year-on-year increase of 25 per cent in sales, according to Savills in its newly launched market briefing on fourth quarter of 2017.
Hotels in Hanoi is thriving thanks to the surge in international tourist arrivals, which results in a high occupancy rate and sharply rising prices.
Dynamic office markets are now more likely to be found outside traditionally prime locations, says Savills, as mixed-use and co-working space becomes increasingly popular, challenging the view that trophy office buildings will be desirable to investors in the coming decades.
