Hanoi (VNA) –ꦇ 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.

To achieve this goal and stimulate recovery, the Hanoi Department of Tourism has launched a variety of initiatives from October through the end of this year. The aim is to attract more visitors, notably the Hanoi Tourism Ao Dai Festival 2024 which took place earlier this month, and communications cooperation with CNN, according to the expert. Apart from promotion efforts, the city has also focused on preserving and upholding cultural values, contributing to its sustainable tourism development, thereby increasing demand in the hotel market. In 2024, Hanoi is set to welcome an additional 68 hotel projects, with approximately 12,115 rooms. It is noteworthy that a five-star hotel is expected to commence operation this year, adding 207 rooms to the market. For the 2025-2026 period, the market is projected to supply 3,035 rooms from 12 new projects. Among these, five-star hotels will dominate, accounting for 77% of the supply, and the rest are four-star. According to Savills, the inner-city area is expected to make up 41% of the total new supply, equivalent to 5,027 rooms from 22 projects. International brands such as Hilton, Fusion, Accor, and Four Seasons are to manage 66% of the new supply, while the remaining 34% will be overseen by domestic management units, offering travelers a diverse range of brand options. Thanks to stimulus programmes, the local tourism sector recorded positive growth in the third quarter, with total revenue reaching approximately 81.93 trillion VND (3.24 billion USD) - a year-on-year increase of 18.5%. During this period, the city welcomed 21.1 million visitors, up 11.7% year-on-year, among them 4.4 million international, up 40.8% year-on-year rise./.