After years of disruption following Covid-19, Vietnam’s hospitality market is now regaining its balance. Domestic travel has stabilized after an early post-pandemic boom, while international arrivals, led by China and South Korea, are climbing back quickly. Hotels around the country are posting stronger occupancy and higher room rates, supported by growing confidence and renewed investor attention. Mr. Mauro Gasparotti, Senior Director and Head of Southeast Asia at Savills Hotels, told Meet the Experts (MTE) Hanoi 2025 that “This is the year every hotel owner has been waiting for - finally, a year to make money.”
Regaining its footing
From rapid expansion to sudden contraction and now measured recovery, Vietnam’s hospitality market has come full circle. Prior to the pandemic, the country boasted one of the world’s largest hotel pipelines, with new projects growing by around 30 per cent each year, Mr. Gasparotti said. This wave of supply outpaced demand, cutting into profitability even as visitor numbers rose.
Over the past few years, however, growth in new supply has slowed to some 5 per cent, giving hotels space to breathe and improve occupancy. Future growth is expected to remain below 10 per cent; a healthy level that aligns better with rising demand and expanding infrastructure. “This is the moment when foreign investors start to look at Vietnam again,” Mr. Gasparotti believes.
The structure of the market is also shifting. Eight of the largest Vietnamese developers, including leading groups such as the Sun Group and BIM Group, account for nearly one-third of total new supply, mirroring patterns seen in more mature tourism markets like Thailand. However, several large projects remain on hold as developers refine strategies and financing plans, leading to a more deliberate, sustainable pace of development.
Geographically, though, growth has been uneven. Coastal destinations like Phu Quoc Island off the coast of the Mekong Delta and central Da Nang city continue to absorb most of the new inventory, while urban centers such as Hanoi and Ho Chi Minh City are under-supplied. “Hotels in Ho Chi Minh City are getting older,” Mr. Gasparotti pointed out. “There have been a few renovations this year, but we need much more.” With limited new projects in the pipeline, the city stands out as one of the most promising investment opportunities in the years ahead.
In terms of segmentation, early-developed destinations such as Mui Ne and Nha Trang along the south-central coast remain focused on the midscale market, while newer hotspots like south-central Cam Ranh province, Phu Quoc Island, and Da Nang lean towards upscale and luxury developments. The next phase of growth, Mr. Gasparotti suggested, will depend on diversification - not just building more hotels but the right ones in the right places.
Beyond traditional hospitality
Inside Vietnam’s hospitality boardrooms, the conversation has changed. The focus is no longer on reopening, it’s on reimagining. Across brands and destinations, hotel leaders are recalibrating portfolios for a more resilient, experience-driven era.
For leading developers like the Sun Group, the last 12 months marked a period of bold expansion. Mr. Daniel Trinh, its Chief Business Development Officer, said the group had entered new business segments, including aviation, as part of its broader strategy to integrate travel and hospitality. Phu Quoc Island remains its anchor destination, where it is developing Southeast Asia’s first all-inclusive resort with Accor, set to open in 2026.
Currently operating 18 hotels and resorts, the Sun Group plans to triple its portfolio to 65 properties by 2030. Beyond scale, it is also adapting to the shifting demographics of travelers. “We’re entering lifestyle hospitality, from luxury lifestyle to economy,” Mr. Daniel noted, pointing to new partnerships with brands such as Marriott and Hilton.
Meanwhile, Ms. Carolina Fagnani, Vice President of Development, Southeast Asia and Pacific, at the Radisson Hotel Group, described 2025 as a year of acceleration, with delayed projects now moving forward and confidence returning among investors. Radisson itself has added lifestyle offerings, with Radisson RED Da Nang and Radisson Resort Mui Ne, while continuing to expand its development pipeline.
The Masterise Group, traditionally known for luxury residences, is taking a long-term view on hospitality. Ms. Nelly Phuong Ta, Head of Hospitality and Entertainment, said Masterise is now focused on building branded living lifestyles across its portfolio, not just branded residences. With 1,400 hotel keys signed and its first properties under construction, Masterise plans to debut hotels in 2027 and 2028, targeting the premium and ultra-luxury segments.
For T&T Hospitality, the past year has been about restarting momentum. Acting CEO Ms. Thuy Le said that after years of limited progress, “there has been a lot of positive change.” The company is now actively signing management agreements with major international operators, including Marriott, and targeting the opening of around ten hotels within the next two years.
The BIM Group has also posted strong performance, with revenue rising 24 per cent since 2019. During the past year, it has opened the InterContinental Halong Bay, Holiday Inn Vientiane, and Soul Boutique Hotel on Phu Quoc Island, with Park Hyatt Phu Quoc set to follow next year. However, Mr. Adam Riley, Head of Hospitality, highlighted a key market shift that caught many off guard: the surge of Chinese travelers to Vietnam. This development, he said, underscores how quickly regional dynamics can change and how essential it is for operators to adapt swiftly.
Game-changing year ahead
As Vietnam’s hospitality industry looks towards 2026, the conversation turns from recovery to readiness. The next 12 months promise not just expansion but a deeper focus on data, talent, and long-term sustainability.
For the BIM Group, next year is about intelligence and insight. “We’ve been developing our business intelligence system over the past three years,” Mr. Riley said. “We’re looking 365 days into the future, exploring how to use AI for predictive insights, and integrating food and beverage data into that system.” Yet alongside technology, he voiced growing concern about people. With Phu Quoc Island and other destinations preparing to welcome thousands of new rooms, talent retention has become a pressing issue. “Staff turnover is over 20 per cent across our estate; that’s starting to keep me awake at night,” he admitted.
At T&T Hospitality, growth remains the priority. Ms. Le shared plans to operate ten hotels by 2026 while expanding T&T’s travel ecosystem through Vietravel Airlines. “We expect to open more flight routes to support tourism and grow our branded residence portfolio,” she said.
Meanwhile, Ms. Nelly from the Masterise Group predicted that 2026 will mark a game-changing phase for the entire sector. The upcoming APEC 2027 Summit on Phu Quoc, she noted, is already driving infrastructure upgrades. “New metro lines and high-speed rail will change our lives, and Vietnam’s travel industry, forever,” she said.
For international brands like the Radisson Hotel Group, Vietnam’s challenge is to turn new visitors into repeat guests. “Only 2-5 per cent of tourists return,” Ms. Fagnani noted. “If we can reach 8-10 per cent, that’s when we can say Vietnam has become a repeat destination.”
Mr. Daniel linked all these ambitions under one theme: sustainability through talent and infrastructure. “We’re launching the Sun Hospitality and Sun Aviation Academies, in partnership with EHL and CAE, to meet future demand,” he said, adding that the group is also developing Phu Quoc International Airport’s Terminal 2 ahead of APEC 2027.
Together, these priorities point towards a maturing hospitality market, one that’s embracing data, building ecosystems, and preparing its people for the next stage of Vietnam’s tourism story.
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