In 2023, the country welcomed 12.6 million international visitors, which was more than thrice the tourist arrival figure in 2022. The upward trend has been continuing this year as well. For the first five months this year, tourist arrivals in the country jumped by 64.9% to 7.58 million, according to data by the General Statistics Office of Vietnam.

Vietnam’s booming tourism industry and the rising demand for accommodation has caught the attention of international hotel companies, which have been planning and opening several developments across the country. Hotel developments have been increasing in Vietnam, with the country claiming the second spot in terms of new hotel project count across Asia Pacific in Q1 2024, according to the latest Lodging Econometrics report.

This week, two major hospitality companies — Marriott and Hilton — unveiled new projects in the country. Marriott announced the arrival of its Westin Hotels & Resorts brand in the country with the launch of the 207-key Westin Resort & Spa Cam Ranh. Meanwhile, IHG said it will be introducing its Vignette Collection brand to the country and will be converting the existing Bay Resort Hoi An to reopen as the 128-key Moire Hoi An, Vignette Collection.

“Tourism is picking up at a rapid rate in Hoi An, with 4.3 million visitors expected this year – a 10% rise from 2023,” said Chris Anklin, senior director, development, IHG Hotels & Resorts. At present, IHG’s estate in Vietnam consists of 18 properties, with the lodging company planning to more than double its portfolio to nearly 44 hotels in the next three years.

In April, Nobu Hospitality, the luxury lifestyle brand famed for its restaurants, hotels and residences, said it will be opening its second project in Vietnam. The new hotel and restaurant will be located in Ho Chi Minh and feature 135 rooms.

Tapping into Vietnam’s potential as a significant market, Hilton recently announced it will be opening three properties by 2028, following the launch of the first Hilton-branded hotel in Ho Chi Minh City in April. The company has a 14-hotel portfolio in Vietnam.

“Vietnam is charting dynamic growth and fast establishing itself as a leading travel destination in Asia. With the opening of Hilton Saigon, we mark Hilton’s entry into the gateway city of Ho Chi Minh City,” said Alan Watts, president, Asia Pacific, Hilton.

In early 2022, Spanish hotel group Melia Hotels International became the second largest hotel operator in Vietnam (in terms of number of rooms) through its partnership with Vinpearl to take over the management of 12 hotels.

The hotel real estate market in the country, especially in Hanoi and Ho Chi Minh City, is projected to witness a major surge in supply, driven mostly by new projects from 2024 to 2026, according to Savills Vietnam. The country’s tourism industry has almost returned to its pre-pandemic levels, thanks to the return of Asian travelers and soaring domestic tourism.

This year will see Ho Chi Minh City welcoming 6 million international visitors and 38 million domestic travelers and earn $7.74 billion, Savills said. Currently, the total supply in the metropolis is 15,991 rooms from 114 hotels, a 3% rise YOY.

Hanoi’s tourism has been showing promising signs of recovery and is no longer dependent on Chinese tourists. Between 2024 to 2026, Hanoi is projected to see 13 projects totaling 2,746 rooms becoming operational, Savills added.

By Kathakali Nandi