Market Trends of Hospitality Industry In Vietnam
Rise in the Number of Visitors to the Country is Driving the Hospitality Industry
Vietnam's tourism industry continues to be among the fastest-growing tourist destinations in the world. It is no surprise that the number of tourists choosing to visit Vietnam is increasing yearly, with an incredible year-round climate, a lively culinary scene, a rich culture, countless stunning beaches, many lively cities, and stunning coastlines. This year, Vietnam experienced a significant increase in international visitors, reaching a total of 12.6 million. This figure represents a growth of 3.4 times compared to the previous year. However, it is important to note that this number only accounts for approximately 70% of the pre-pandemic levels. According to a report from the General Statistics Office, South Korea remained the top contributor of tourists, followed by mainland China, Taiwan, the U.S., and Japan. Thailand, Malaysia, Cambodia, India, and Australia also made significant contributions to Vietnam's tourism industry, with visitor numbers ranging from 390,000 to 489,000.
Hotel Construction Project Pipeline is Anticipated to Meet the Increasing Demand in the Hospitality Industry
The pipeline of hotel construction projects is expected to meet the country's rising demand, which is indirectly driving the hospitality industry in Vietnam. According to the TOPHOTELPROJECTS construction database, Vietnam will receive 253 projects with 88,827 rooms. A multitude of international hotel brands have expanded their presence in Vietnam by acquiring domestic hotels in various locations. Marriott International, a global hotel management group, has recently entered into agreements with Vinpearl to oversee an additional seven hotels and resorts, including three in Nha Trang, Hoi An, and Danang, as well as four new builds that will offer over 1,200 rooms and are expected to open by 2028. With a current portfolio of 16 hotels and resorts in Vietnam, Marriott International plans to introduce several renowned brands to the country in the coming years, including The Ritz-Carlton, Westin Hotels & Resorts, Element by Westin, and Courtyard by Marriott. Another notable player in the hospitality industry is Lodgis Hospitality, which was established through a partnership between Warburg Pincus and VinaCapital. Presently, this enterprise owns and manages a total of 11 hotels and resorts in Vietnam and Cambodia. With aspirations to operate 10,000 rooms by 2025, the company is poised for further growth and expansion.
Furthermore, the country's major cities, particularly Ho Chi Minh City and Hanoi, are on course to see an influx of new hotels. 75 of the 130 hotel projects featured are four-star, with the remaining 55 guaranteeing five-star service. The most prominent locations for hotel development are Ho Chi Minh City, with 15 new properties totaling 7,323 rooms, and Hanoi, with 13 new buildings totaling 4,242 rooms. Da Nang anticipates 11 properties with a total of 2,933 rooms.
