Vietnam’s Hotel Sector Flourishes with New International Brands and Expanding Tourism Market

Published on December 5, 2025

Vietnam’s hotel industry is in a period of robust growth buoyed by strong inflows of international tourists. The demand for quality accommodation is rising amidst a bounce-back in the country’s tourism volumes in the post-pandemic period. A recent report by real estate agents JLL indicated the broader hotel market in Vietnam would continue to expand as investors and developers moved to respond to the growing tourism influx.

Vietnam’s Tourism Growth Fuels Hotel Demand

Vietnam’s tourism market has undergone a remarkable recovery since the pandemic, with international tourist arrivals steadily climbing. Over the last decade, the country has seen its hotel inventory grow at a compound annual rate of 7%, marking a strong upward trajectory. The latest figures show that Vietnam now boasts over 185,000 hotel rooms across more than 1,500 hotels. As a testament to the country’s growing importance as a global tourist destination, international hotel brands are increasingly eyeing the market, particularly in the upscale and luxury segments.

In fact, the upscale and luxury hotel segments account for 57% of the total hotel inventory, a trend that reflects the rising demand for high-quality accommodations among both domestic and international tourists. As Vietnam’s appeal as a destination for both leisure and business travelers continues to grow, the need for more hotels and upgraded facilities has become more apparent.

A Tricky Market for Foreign Investors

While the outlook for Vietnam’s tourism sector is undoubtedly positive, foreign investors still face challenges when it comes to market entry. Bureaucratic hurdles, including complex administrative processes, can make executing deals in the Vietnamese hotel sector difficult. Additionally, there is a lack of transparency around market pricing and real returns, which can add to the uncertainty for international investors.

Despite these challenges, the growing demand for tourism infrastructure has continued to attract foreign capital to Vietnam. According to JLL, the projected investment volume for 2025 has been revised upwards from USD 100 million to USD 125 million, reflecting the strong interest in the market. The 2026 market outlook remains positive, with expectations for continued deal activity, contingent on the availability of quality hotel inventory to meet the growing demand from international travelers.

Key Cities Drive Hotel Development: Ho Chi Minh City and Hanoi

Vietnam’s two largest cities, Ho Chi Minh City and Hanoi, are key drivers of the country’s hotel market expansion. Both cities offer travelers unique urban experiences steeped in Vietnamese culture, making them the top destinations for tourists seeking an immersive city experience. Ho Chi Minh City, with its bustling streets, rich history, and vibrant nightlife, is a popular hub for international business travelers and leisure tourists alike.

In Hanoi, the demand for high-end accommodations is also growing. International hotel brands are increasingly focusing on the city, recognizing its appeal to both tourists and business visitors. One notable project is the upcoming launch of the 241-room Fairmont Hanoi, set to open in the first quarter of 2026. This new addition will further solidify Hanoi’s position as a luxury destination for travelers seeking a sophisticated, cultural experience.

The Luxury Hotel Boom in Hanoi

In addition to the Fairmont Hanoi, Hanoi will soon be welcoming another luxury hotel. The Four Seasons Hotel Hanoi at Hoan Kiem Lake, a property conversion, will open later in 2026 with 95 rooms. The arrival of these high-end brands signals the growing interest in Hanoi as a luxury destination.

Looking ahead to 2027, Hilton’s prestigious Waldorf Astoria brand will also make its mark in Hanoi, with plans to convert and upgrade the existing Hilton Hanoi Opera property into a 187-room luxury hotel. These new openings highlight Hanoi’s growing appeal as an upscale destination for both leisure and business travelers.

Ho Chi Minh City: A Hotspot for International Hotel Brands

Ho Chi Minh City is also experiencing significant hotel development, with several major international brands preparing to open new properties in the city. IHG’s Vignette Collection will open a property in the city, while Marriott is preparing to launch hotels under both the Marriott and JW Marriott brands as part of the Grand Marina development. These new properties will cater to the city’s growing demand for luxury accommodations.

In addition to these projects, the Nobu hotel and restaurant brand is making its debut in Ho Chi Minh City, with a planned opening in the second half of 2026. The 135-room Nobu hotel will occupy the upper floors of a new 40-story mixed-use building in the historic District 1, further adding to the city’s vibrant hospitality offerings.

The Role of Asian Hotel Groups: Ascott Expands in Hanoi

In addition to Western hotel brands, Asian hotel groups are also playing a significant role in Vietnam’s growing hotel market. The Ascott Group, known for its serviced residences, will launch three of its brands in Hanoi during 2026. These will include Citadines, Ascott, and Crest-branded properties, all located within the same major new development. This expansion by Asian hotel groups demonstrates the strong demand for serviced apartments and residences in Vietnam, catering to the growing number of long-term business travelers and expatriates in the country.

The Economic Impact of Hotel Developments

The rise in hotel developments in both Ho Chi Minh City and Hanoi reflects the broader growth of Vietnam’s tourism sector. These developments are not only aimed at providing more luxury accommodations but also at stimulating local economies by creating jobs, boosting the hospitality sector, and encouraging more international visitors. The influx of international hotel brands into the market further underscores Vietnam’s growing stature as a global tourism destination.

Moreover, the development of these high-end hotels helps diversify Vietnam’s tourism offerings, making it an attractive destination for a wide range of travelers, from luxury tourists to business professionals. As these hotels begin to open in the coming years, they will undoubtedly drive further economic growth and attract more visitors to Vietnam.

Vietnam’s Growing Hotel Market

International tourists and investors continue to flock to Vietnam, meaning the hotel market here is expected to keep growing. The surge in demand for high-end accommodations in cities such as Ho Chi Minh City and Hanoi is accordingly pushing new hotel projects. With much recent tourism infrastructure development, this country is thus destined to take a leading position among other global destinations, offering international travelers an unrivaled combination of cultural experiences and modern hospitality.