Grant Thorntons Hotel Survey 2012 shows that both

average room and occupancy rates increased in high-end

hotels across Vietnam during 2011.
<Embargoed for release until 10.00am on 20th June 2012 >
20th June 2012
Grant Thornton Vietnam today released the results of their annual Vietnam Hotel Survey. The 2012 survey is
the ninth edition of the only comprehensive study looking at high-end hotels and resorts in Vietnam. The
survey results showed that the year of 2011 built on the success of the preceding year. Vietnams Hospitality
and Tourism industry in 2011 again achieved a creditable performance with the number of domestic and
foreign tourists both increasing, contributing to an overall rise in room and occupancy rates.
Even though the growth rate of international and domestic tourists was not as high as last year, The tourism
market continued to grow with more than 6 million foreign visitors, a 19.1% growth year on year, leading to a
rise in room rates to an average of USD90.84 per night, an increase of 9.1% compared with 2010. Kenneth
Atkinson, Managing Partner at Grant Thornton Vietnam welcomed the results saying that 2011 was a
landmark year for the hospitality industry in Vietnam. An increase in occupancy rates and room rates has led
to an overall rise of RevPAR, the standard industry measure of hotel utilisation and return, of 10.4%
compared with the previous year. However the first few months of 2012 are showing signs of a slow down in
the 5-Star market with several hotels reporting lower occupancy and room rates than last year. This is in part
due to new room supply in the market and also a change in the arrivals mix with more inter-regional tour
groups, preferring 3 and 4-Star hotels

Annual Average Room Rate, Occupancy Rate and RevPAR (2003 - 2011)

140

70%

120

60%

100

50%

80

40%

60

30%

40

20%

20

10%

Annual average
room rate ( $)
RevPAR

Annual average
occupancy rate
(%)

0%
2003 2004 2005 2006 2007 2008 2009 2010 2011

*RevPAR = Revenue Per Available Room

The hotels are analysed by Star category, hotel size and hotel region. When analysed by Star ranking, the
results are different from the previous year in that 3-Star hotels increased their occupancy rates by an
impressive 8.1%, while 5-Star hotels had a lower occupancy rates than last year.

RevPAR showed an overall increase from USD49.73 to USD54.89, a rise of 10.4% due to a higher occupancy
rate coupled with increase in annual average room rate. 4-Star hotels had the highest increase of 17.9% to
USD54.67 in 2011, followed by 3-Star hotels enjoying 5.0% growth; whereas 5-Star hotels experienced a
significant decline of 7.8% this year. The reduction in 5-Star hotels RevPAR was mainly due to a decrease of
6.4% in average room rates, to USD123.04 from USD131.38 last year.
Annual Average Room Rates by Star Ranking

Annual Average Occupancy Rates by Star Ranking

140
80%

120

100

3-Star

80

4-Star

60

5-Star

40

3-Star

60%

4-Star
5-Star

40%
20%

20
0

0%

2003 2004 2005 2006 2007 2008 2009 2010 2011

2003

2004

2005

2006

2007

2008

2009

2010

2011

In terms of revenue and expenses, the breakdown of revenue in the 3 main categories (Room sales, Food and
Beverage and Other services) in 2011 was very similar to that of 2010, accounting for 62.7%, 28.0% and 9.3%
of total revenue respectively. When looking at EBITDA (Earnings before Interest, Tax, Depreciation and
Amortisation) of all Star categories, with departmental costs lower than that of 3 and 5-Star, 4-Star hotels
achieved the highest EBITDA of 37.8%.
Expenses and Profit as a Percentage of Revenue in 2011 by Star Ranking

100.0%
90.0%

18.9%

80.0%

5.0%
5.1%

70.0%
60.0%
50.0%

28.4%
4.9%
3.8%

5.4%
2.5%
42.4%
27.6%

40.0%
30.0%

37.8%

34.5%

20.0%

3.9%
4.0%
2.7%

10.0%

17.9%

13.1%

11.4%

3-Star

4-Star

5-Star

6.8%
4.5%
5.8%

6.0%
2.8%
4.6%

0.0%
G&A expenses
Repair and Maintenance expenses
Total departmental expenses
Other expenses

Sales and Marketing expenses

Energy expenses
Fixed charges
EBITDA

This year, 47.7% of hotels surveyed said they were planning to expand or improve facilities over the next 2
years, of which, over 70% of said they planned to renovate. When looking at hotels by Star ranking, there was
a difference in hotels plans this year as renovation was top of the list across all Star categories in 2011,
whereas adding more services was indicated by most respondents in 2010.
In 2011, 63.6% of hotels conducted Customer Satisfaction Surveys (CSS) to gather customer feedback,
increasing by 10.5% compared with the previous year. The use of an In room questionnaire remained the
most preferred method, followed by questionnaire At the reception.
In 2011, booking through travel agents and tour operators continued to be the most preferred method
irrespective of region, Star ranking and hotel size, with 45.9% of total reservations, a slight increase of 0.5%
year on year. Direct booking with the hotel was the next preferred option with 29.8%, increasing by 0.8%
compared with 2010 while internet sales increased to 14.8% from 10.1% in 2010.

Copies of Grant Thornton Vietnams Hotel Survey 2012 can be ordered by visiting Grant Thornton
Vietnams website, www.gt.com.vn/publications, or by contacting Grant Thornton on +84 8 3910 9100. An
Executive Summary of the survey report is also available for download from the website. 100% of the
proceeds raised from sales of the Hotel Survey 2012 will be donated to Operation Smile Vietnam, a nonprofit organisation providing free corrective facial surgeries to underprivileged children in Vietnam suffering
from cleft lips and cleft palates.
- ends Further enquiries, please contact:

Kenneth Atkinson
Managing Partner
E: Ken.Atkinson@vn.gt.com

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