A hotspot for tourism

As more local and foreign investors develop hotels, resorts and tourist facilities throughout Vietnam, established hotels realise that to compete they need to renovate. In Hanoi, the Sofitel Metropole has just opened the luxurious and serene Club Lounge on the 7th floor of the Opera Wing.

“Club Metropole Lounge promises guests impeccable service, enchanting luxury and a host of impressive facilities, ” says Gilles Cretallaz, General Manager of Sofitel Metropole Hanoi. “This new oasis of charm in the neo-classical Opera wing, in conjunction with the legendary grandeur of the historic Metropole itself, combines to create the unique identity of the iconic Sofitel Metropole Hanoi.

” The Metropole will also look to raise the bar, once again, in haute cuisine in the downtown area. “Angelina – The Italian Steak house will be the most recent, distinguished and ‘avant gardist’ culinary address in the heart of Hanoi proposing an unparalleled atmosphere in a very unique setting, ” adds Cretallaz.

“L’Epicerie du Metropole is going to provide not only the familiar home-made and well-known imported products from France, but also different kinds of spices, tea, coffee or ice-cream…” Fortuna Hotel Hanoi has recently made a number of significant renovations to meet the demands of business and leisure travellers coming to the capital city. New amenities include The Capital Lounge, Sen Spa & Beauty Salon, Victoria Ballroom, a new gymnasium centre, and an outdoor swimming pool.

The hotel has also just upgraded Tiffin restaurant, which serves Western cuisine and the Red Lantern Chinese restaurant. “In order to reach the speed of hotel and tourism development in our country, Fortuna Hotel Hanoi is renovating instantly. Moreover, Fortuna Hotel Hanoi is completing renovation in services and facilities to become a true Five-Star Hotel in Hanoi, ” says Steve Tan, the Assistant General Manager.

In Ho Chi Minh City, Saigontourist Holding Co plans to expand its current portfolio of 4, 000 rooms to 6, 000 by 2010. Posting revenues near $400 million in 2007, the firm is planning to build a new complex in the Thu Thiem New Urban Area in District 2 and renovate the Kim Do Hotel and the Majestic, spending nearly $200 million. The company is expected to receive 1.64 million Saigon-bound tourists in 2008.

Sheraton Saigon Hotel & Towers has converted an apartment block into 112 guest rooms and now features 483 hotel rooms, studios, and suites in total. Duxton Saigon Hotel is converting several deluxe twin rooms into deluxe double rooms to satisfy high demand for double rooms and will also install free broadband internet in all Executive rooms, Executive suites and Royal suites, in response to customer feedback.

“Regarding the room conversions, our occupancy is currently very high and we have noticed that our Deluxe Double rooms always sell out first – so adding more of this room type will help us increase occupancy even further, ” says Tim Russell, Director of Sales & Marketing of Duxton Saigon Hotel.

Ten years after its debut as Vietnam’s most dramatically refurbished hospitality icon, the Caravelle Hotel is greeting its landmark anniversary with plans for a top-to-bottom overhaul of guest rooms and suites, a slate of environmentally friendly green initiatives and the production of a lengthy book that celebrates the history of the hotel.

“We are not adding new services within our hotel operation, we are simply embarking on a programme of environmental consciousness within the hotel and are at the early stages of setting up this programme, ” says John Gardner, General Manager of Caravelle Hotel “Worldwide over the past few years people are becoming more environmentally conscious and even more so in the past few months with the rising cost of fuel and the obvious change in climate around the world, ” adds Gardner. “Not only will we eventually reduce our carbon footprint in the world but we will enjoy significant cost savings to our operation.”

Room rates on the rise

There are various explanations about the average daily rates increased by more than 30 per cent at three to five star hotels. “Our rates have remained unchanged since the beginning of the year, so we are currently looking at small increases in late 2008, based on various factors including our forecasted occupancy and market conditions, ” says Tim Russell.

“In comparing with last year, the hotel room rates increased only a little, nearly 10 per cent, but the services and facilities were upgraded a lot, ” says Steve Tan. John Gardner explains, “Any increases we implement in the future will be to simply offset the significant operational cost increases we face each day. As we all know in Vietnam just now inflation is running very high and as a major user of products our cost increases are large.”

Tourism Statistics

According to the Vietnam National Administration of Tourism the average tourist expenditure will reach $976.26 per head by 2011. The industry prediction is supported by the government’s targeted goals of six million international arrivals by 2010 and an increase of gross revenues by 50 per cent.

Vietnam reached a milestone in 2007 with over 4.1 million international arrivals, reflecting an impressive 16 per cent year-on-year gain. The demand for hotel rooms in Vietnam is outstripping the available supply. This shortage has persisted for years and has pushed up room-rates particularly in Hanoi and Ho Chi Minh City, where average daily rates increased by more than 30 per cent at three to five star hotels.

With occupancy rates averaging over 80 per cent, the lucrative MICE market (Meetings, Incentives, Conventions and Exhibitions) continues to elude Hanoi and Ho Chi Minh City.