Vietnam – a country of economic and climatic contrasts – is attracting international hotel brands in ever greater numbers, as they seek to take part in its growth story.
From glossy branded residences to full-service resorts along its 3,260 km coastline, Vietnam is experiencing a hospitality growth spurt – but interested parties need to do their due diligence, experts advise.
Branded residences
“Branded residences are one of the biggest trends in Vietnam at the moment,” notes Uyen Nguyen, associate director, Southeast Asia, Savills Hotels. “Ritz Carlton recently completed a branded residence with a local developer which has been dubbed one of the most expensive residential developments in Southeast Asia.” The super-luxury project, The Grand Hanoi, is situated in Hanoi Old Quarter and includes just 104 apartments, a swimming pool, as well as three basement parking levels. Prices start at US$25,000 per square metre for the residences, that range from 120 to 250 square metres per unit, and enjoy opulent common areas inspired by the palace of Versailles.
Local developers and international investors looking to hop on the trend need to be aware of the pitfalls however, Uyen warns. “Residential developers are keen to partner with international brands, but finding the right location is difficult, and they also need the construction knowhow to match the brand standards. Many are trying to get in on the trend without understanding the complexities,” she adds.
Nevertheless, Vietnam seems likely to be swept up with a development trend which is already spreading throughout Asia Pacific. The region is now home to some 23 percent of the global supply of branded residences, after the concept first arrived here in 1988. Savills data shows that by mid-2023, over 150 branded residence projects were completed in the region overall, with a similar number in development.
While Phuket, Thailand, is something of a regional leader, the concept has soared by some 230 percent in Vietnam over the past decade, with destinations such as Da Nang and Hoi An attracting plenty of projects. Matthew Powell, director of Savills Hanoi, suggests that coastal regions have certain advantages. In the Hoi An - Da Nang region alone, five branded residential projects have been completed, with 12 more underway.
Says Powell: “Vietnam offers not only great natural landscapes but also a pleasant tropical climate year-round. These factors are crucial for developers when choosing locations for branded residences.” He says that notable projects include Mandarin Oriental schemes in Danang and Phu Yen.
Luxury on the rise
Branded residences aren’t the only rising trend in the country. While the country’s meagre transactions data might suggest that there are lean pickings in Vietnam for international hospitality investors, this has been mostly caused by the gap between seller’s expectations and the attitudes foreign investors have toward risk and reward, Uyen suggests. A growing demand for luxury stays is likely to stimulate a development pipeline, she adds, highlighting the desires of wealthy international travellers and the growing disposable income of Asian holidaymakers.
Several luxury hotels will be launching in 2025, including the Park Hyatt Phu Quoc, slated to open in the third quarter of the year, and expected to offer 175 keys, including 110 rooms and 65 residences. Notably, the opening will mark Park Hyatt’s first resort in Vietnam, and second property in the country, after the Park Hyatt Saigon.
The InterContinental Ha Long, meanwhile, which opened for bookings from 9 July, is pitched as a “beachfront sanctuary” with spa and six restaurants in North-East Vietnam, featuring 275 suites and villas overlooking “green-clad mountains” and an “azure blue sea”. Other recent launches include the Radisson Blu Ha Long, which opened in April.
Middle class appeal
Vietnam has long been seen as an affordable destination, and this reputation is set to underpin the expansion of its midscale and limited-service segment. China remains its largest incoming market, with Chinese tourists often picking destinations such as Vietnam in times of economic uncertainty over expensive long-haul travel.
In October, Accor inked a deal to open in the Mercure Nha Trang – its ninth signing in Vietnam in 2024 – bringing this midscale brand to the popular coastal city for the first time. Set to open late 2025, the property will feature 124 rooms, an all-day restaurant, bar lounge, fitness centre, spa, and meeting spaces. Says Garth Simmons, chief operating officer of Accor’s premium, midscale, and economy division in Asia: “Vietnam is a fast-growing market with significant potential for continued expansion. Nha Trang, as an emerging destination with vibrant tourism appeal, presents a prime opportunity to introduce the Mercure brand to a broader audience.” He adds: “The demand for high-quality hospitality that also connects guests to the local culture continues to rise.”
Alexandra Murray, vice president and regional head of Southeast Asia at Hilton, also sees plenty of potential in Vietnam’s middle ground. “About 65 percent of Southeast Asia's population is expected to reach the middle class by 2030,” she says. “That's why we, together with our partners, look at expanding our full service and focused service footprint to cater to this growing segment.”
She also sees opportunities in the upscale arena for brands such as Hilton Garden Inn, which is currently operating in Da Nang and Hanoi, but has slated openings in Mui Ne Beach and Vinh Long. “There's certainly a rise in disposable income, which leads to a rise in luxury and lifestyle demand,” she adds. Accordingly, the Waldorf Astoria Hanoi will open its doors in the next two years with around 190 keys, converting the current Hilton Hanoi Opera into a more luxurious offering.
Growth spurt
In 2024, Vietnam welcomed 17.5 million international visitors, making it the third-most visited country in the region. Momentum has continued into 2025, with over 9.2 million arrivals in the first five months alone – a 21.3 percent year-on-year increase, notes Wong Kar Ling, chief strategy officer and managing director, Southeast Asia at The Ascott Limited.
The Ascott, CapitaLand’s lodgings arm, is expanding across the country with a multi-brand strategy that seeks to capture different income brackets and traveller types. The firm opened the Oakwood Ha Long last year, adding to the bleisure brand’s presence in Hanoi and Ho Chi Minh, and launched the Lasong Hotel & Villas Sam Son under the lifestyle flag of The Unlimited Collection this April. The group is also managing coastal resorts such as Somerset Nha Trang, and has been appointed by TCC Group to manage the beachfront Citadines Selavia Phu Quoc from 2027.
Adds Kar Ling: “Our commitment to Vietnam’s growth extends beyond leisure into the meetings, incentives, conferences and exhibitions (MICE) segment. Ascott Tay Ho Hanoi, scheduled to fully open in 2026, is a flagship development that will anchor this ambition.” The imposing 618-key property including hotel rooms and serviced apartments will feature 14 event spaces, restaurants and wellness areas, as well as a pillarless ballroom with capacity for up to 2,000 guests.