Vietnam’s tourism sector is rapidly growing, fueled by increased domestic travel and international arrivals, with 17.6 million foreign visitors in 2024, positioning the country as one of Asia’s fastest-growing destinations, according to a new report by Savills Hotels and international law firm Watson Farley & Williams. The hotel market reflects this growth with over 192,000 midscale-to-luxury rooms and strong occupancy rates. Investor confidence is rising as domestic developers dominate, offering refurbishment and management opportunities for international brands.
Vietnam welcomed 17.6 million foreign visitors in 2024 and an additional 15.4 million in the first nine months of 2025, putting the country on course to reach its target of 25 million international visitors by year-end.
As of Q3 2025, Vietnam had more than 192,000 midscale-to-luxury hotel rooms, reflecting a compound annual growth rate of 10.9% over the past decade, among the highest in Southeast Asia. Approximately 60% of the nation’s room supply is located in coastal destinations, underscoring the continued dominance of the resort-tourism model.
Hotel performance has improved significantly across key markets: resorts in Da Nang and Nha Trang consistently achieved 70-75% occupancy, while Phu Quoc recorded year-on-year occupancy increases of 10-15%.
With tourism rebounding, new supply slowing, and demand shifting toward premium products, investor confidence is strengthening, Savills noted.
Domestic developers still control nearly 90% of existing hotel inventory, and about 68% of properties remain owner-operated, presenting significant opportunities for refurbishment, repositioning, and new management agreements with international hotel brands.
The number of foreign hotel brands operating in Vietnam is expected to rise from around 90 today to more than 130 within the next three years.
In addition to acquisitions, both domestic and international investors are increasingly targeting coastal land and redevelopment sites, with the greatest interest focused on luxury, upscale, and branded residence projects.
Large-scale infrastructure projects, including Long Thanh International Airport, expansions at Noi Bai International Airport and the development of Gia Binh Airport, along with the North-South Expressway – are set to enhance regional connectivity and accelerate long-term tourism and hospitality growth.
Mauro Gasparotti, Senior Director of Savills Hotels Asia Pacific, said that improving market fundamentals and growing acceptance of diversified hospitality products, especially in Ho Chi Minh City and Hanoi, continue to make Vietnam highly attractive to foreign investors seeking high-return opportunities.
Australian Hospitality Alumni Network Vietnam 