Every year the number of visitors to Da Nang is on a rise, with the appearance of the accommodation in the segment from 1-3 stars. Since then, the real estate market of Da Nang in recent two years has become "fever" when many investors in the country hunting for land area of ​​about 200-500m2 to build mini-hotels, hotels 1-3 star.

These days, a series of key works in Da Nang city bustling machine construction day and night. In addition to mobilizing the most human resources, equipment and machinery for construction, this locality is also pushing to complete infrastructure, transportation ...

In particular, Da Nang City People's Committee identified the works need to accelerate to complete the APEC 2017 includes: Da Nang Vinmec Hospital, Ariyana Da Nang Convention Center (ADECC), Center Fair, Tien Son Sports Palace, Danang International Airport expansion project (Da Nang International Terminal Investment Joint Stock Company).

Capturing big business opportunities from the APEC Forum 2015, the wave of investment in the construction of the 1-3 hotel has blown the city in the past two years. Da Nang has more than 500 1-3 star hotels with more than 14,000 rooms; Many of the new hotels are located near the sea of ​​Son Tra, Ngu Hanh Son.

According to CBRE Vietnam, the segment of 3-star hotel occupies the highest proportion of total supply with 45%, 4-star hotel (27%) and 5-star hotel accounting for 28%. CBRE forecasts that in 2017-2018 Da Nang will add 6,000 hotel rooms, of which the majority of medium-sized hotels occupy quite large numbers.

Located between the four main roads are Pham Van Dong - Hoang Sa - Vo Van Kiet - Ngo Quyen, the hotel is where hundreds of motels, mini hotels from 1-3 stars grow up close as spider web. Most of these hotels are modest and simply designed.

Mr. Huynh Van Tran (An Cu 1, Phuoc My Road) said: "In the past, this area was only reeds, where gathering materials to build large works of the city. A few years ago, when the tourism activities in Da Nang developed, along with the five star hotel in front of the sea, a series of motels and hotels rise. Along with that is the services such as eating, bars ... also developed.

According to Mr. Tran, in addition to some investors with little capital, to build a small hotel, many households see this type of development also "clinging". These households repaired their homes, built additional rooms and then attached their signboards or 1-2 stars to the hotel.

Along the same street, Ha Bong Street (Phuoc My Ward, Son Tra District), behind the A La Carte Hotel (5 star standard) is less than 500m but there are 35-40 big and small hotels. types. The road is 7.5m wide but the car park is filled with sidewalk and spreads down the road.

Son Tra district has 172 hotels with 6,424 rooms and 93 guest houses, most of which are 3-star and 3-star hotels. It can be seen that the influx of hotels leads to over supply, especially in the low season, the average occupancy of these hotels is only about 40-45%, leading to the situation. price competition.

According to the report of the Tourism Department, the average occupancy rate of the three-star hotel was 46%, 1-2 star groups only reached 25-30%.

According to the valuation of the travel companies, many investors are still thinking of building hotel room only for visitors to eat and vacation should have lost their business market share. Another important factor is that the business units often see each other as rivals, racing to lower prices to attract customers, so the quality of services also decreased, causing guests to once again do not want to return.

According to Luong Minh Sam, Chairman of Da Nang Hotel Association, the segment of 1-3 star hotel of Danang is occupying a large market share, but most of the investment is quite rushed, spontaneous business, lack of orientation. Investors must have an early orientation and target a specific market before construction.

However, investors are doing the opposite, building hotels and then find the market, resulting in inefficient operation. Prior to this situation, this segment should strengthen the quality, products, services ..., so there are links, interconnected, unified price based on real market prices; thus creating a difference in the quality of services and products.

On the other hand, when the project grows massively like spider webs, the above roads are often overloaded by the influx of tourist arrivals. "Every day at around 17-18pm, the traffic is stuck. Guests from the tour rushed down here. Hotel prices Pham Van Dong Street only 1/3, even one-star hotels along the Hoang Sa. The distance from the hotel to the beach is also very short, 2 minutes walk to the sea, "a hotel manager said.

CBRE noted that the hotel market would also provide a large room for hotel rentals. Guests will have more accommodation choices. On the contrary, it will be a big challenge for hotels / resorts to maintain business results when competition in the market is not just between hotels / resorts but also with ground projects. hotel guests.