A new report from agents JLL paints a positive picture for the hotel market in Vietnam. The country’s international tourism volumes are growing, having largely bounced back after the pandemic.
Investors and developers have responded to the growth in the country’s inbound tourism market. Over the last decade, hotel inventory has grown at a compound annual rate averaging 7%. Today, there are more than 185,000 rooms in over 1,500 hotels across the country, with international brands taking an ever stronger interest. Of the total, the upscale to luxury segments account for 57%, reports JLL.
A tricky market for foreign investors
Market conditions continue to favour domestic investors. Administrative hurdles can make deals hard to execute, while there is a lack of transparency around market pricing and real returns. However, the attractive outlook is encouraging more international capital to head towards Vietnam.
That growing interest means JLL has raised its expectations for 2025 investment volume, from a previous USD100 million estimate, to a revised total of USD125 million. In their market report, the agents note: “The 2026 market outlook remains positive, with expectations for sustained deal activity contingent on quality hotel inventory entering the market.”
Tourists planning a trip to Vietnam typically head for one of two key city destinations for an urban experience of Vietnamese culture: Ho Chi Minh City and Hanoi, Alternatively, for those seeking a coastal vibe, there is the city of Danang, which opens up to the East Sea.
The Hanoi market is a focus for international accommodation brands from both east and west. Accor’s Fairmont brand will soon launch in the city, with the 241 room Fairmont Hanoi expected to open in the first quarter of 2026. It will be joined later in the year by another luxury brand arriving. The Four Seasons Hotel Hanoi at Hoan Kiem Lake is a property conversion, creating a new 95 room hotel.
Looking ahead into 2027, and Hilton’s Waldorf Astoria luxury brand will be joining the market. This will be a conversion and upgrading of the existing Hilton Hanoi Opera, and will have 187 sumptuous rooms.
Asian groups take their place
Also making their mark are Asian group The Ascott. They will be launching three of their serviced residence brands in the city, all in the same major new development. Citadines Tay Ho View Complex Hanoi will open alongside Ascott and Crest branded properties, all launching during 2026.
In Ho Chi Minh, a similar spread of projects is under way. IHG will shortly open their Vignette Collection conversion, while Marriott has pipeline properties for the group’s Marriott and JW Marriott brands, both part of the Grand Marina development. And the Nobu hotel and restaurant brand is coming to the city, with an opening expected in the second half of 2026. The 135 room property will occupy the upper floors of a new 40 storey mixed use block being built in the historic District 1.
