The central coastal city of Danang is set to develop 99 more four- or five-star hotels with over 21,000 guest rooms by the end of 2024, heard a press briefing on the Danang real estate market yesterday (July 26).

Danang to have 21,000 more hotel rooms in next three years:

By late 2022, an additional 10 hotels with over 2,440 rooms will be built in the city, taking the total number of four- or five-star rooms to some 18,000.

Speaking at the press briefing, a representative of CBRE Vietnam, which specializes in real estate research and services, said that from now until 2024, the rate of a hotel room were forecast to soar by 25% per year and could hit US$119, or VND2.8 million, per night. Furthermore, room occupancy will recover to the pre-pandemic level of 63%.

Though the Covid pandemic is still spreading in many countries, this year will see hotel room rates increasing by 30% year-on-year. Average room occupancy is predicted to stand at 53.2% this year, up 43.5 percentage points from last year.

Since August last year, Danang has stopped granting licenses to new condotel projects to cope with the oversupply, according to the representative of CBRE Vietnam.

In the 2022 and 2024 period, the city will have an additional 1,800 condotels, which had earlier been licensed for construction.