According to the Vietnam Hotel Market 2025 report by JLL and DN Lega, the hotel supply has been growing at a compound annual growth rate of 7 per cent up to 2024. 

As of July 2025, the market recorded over 185,000 rooms across 1,500 lodging facilities, with the upscale to luxury segment accounting for 57 per cent of the total supply.

Ho Chi Minh City, Hanoi, and Da Nang are the three main markets, contributing 14 per cent, 13 per cent, and 12 per cent of the national supply, respectively. 

Notably, hotels have maintained a 20 per cent growth compared to the same period last year, thanks to a continuously increasing room occupancy rate. Revenue per available room, calculated in local currency, has increased by an average of 21 per cent annually from 2020 to 2024.

Mr. Karan Khanijou, Senior Vice President of JLL's Asia Hotel & Hospitality Investment Division, noted that the hotel investment market is attracting attention, with recent transactions yielding returns of 6 per cent to 7.5 per cent, approaching investors' expectations of 8 per cent to 9 per cent. 

Based on market trends and potential deals, JLL forecasts that hotel investment volume in Vietnam could increase from $100 million to $125 million in 2025, reflects confidence in the market's growth foundation and the increasing appeal of domestic and international investment capital.

According to JLL representatives, Vietnam is undergoing comprehensive legal reforms to create an unprecedented favorable investment environment. 

Specifically, the Land Law 2024, effective from August 2024, allows for flexible land price adjustments within a year instead of the previous five-year cycle, providing greater transparency in land valuation. 

Notably, the Vietnamese government is also restructuring its administration to create a more streamlined administrative system, opening up significant opportunities for upgrading transportation networks, service quality, and lodging facilities.

The tourism sector also aims to contribute 8.3-8.5 per cent of GDP in 2025. To achieve this, the government is implementing initiatives to position Vietnam as a leading tourist destination in Southeast Asia.

Looking ahead to 2026, Mr. Khanijou remains optimistic, expecting an increase in standard hotel supply and investment transactions. However, the biggest challenge remains selecting and filtering assets that meet the standards to attract institutional investors, as the actual supply is still quite limited.

Source: VnEconomy