Matthew Powell, head of the Hanoi and Da Nang offices of Savills Vietnam, has noted that the capital city’s hotel market still holds significant short-term recovery potential.

The hotel market is experiencing impressive growth with significant Revenue Per Available Room improvements, according to hospitality advisory and investment Savills Hotels.

The recovery of tourism, especially its international segment, is seen to be the driving force for the hotel market to prosper, with improvements in both occupancy and room rates, said experts from the real estate agency Savills Vietnam.

After a long hiatus caused by the COVID-19 pandemic, Vietnam’s tourism is gradually reopening with the resumption of international flights, which is considered a positive factor helping recover the hotel market.

Vietnam’s real estate market recommenced its record run, with the industrial sector viewed as the star of the industry thanks to the country's success in combating COVID-19, said a story by Philip Heller published on Forbes earlier this week.

The hotel market in Vietnam this year is expected to face a severe decline in room occupancy due to the COVID-19 pandemic and will not recover until next year, industry experts have said.

Four- and five-star hotels in Ho Chi Minh City have seen a slight decline in room rates although the rising number of tourists has resulted in an increase in occupancy rates at high-end hotels.