Vietnam’s Hospitality Future: A Growing Investment Landscape

According to a recent analysis by JLL Vietnam in their report ‘Inside Vietnam’s Hospitality Future,’ released on September 24, 2025, the hospitality sector is entering an exciting phase of sustained investment growth. This comprehensive report outlines rising tourism demand and burgeoning developments, presenting a world of opportunities within Vietnam’s hospitality market.

Investment Trends in Vietnam’s Hotel Market

JLL has projected a bright future for Vietnam’s hotel investment landscape. By 2025, it expects transaction volumes to soar to $125 million—a significant increase from the earlier estimate of $100 million. This upward revision indicates improved market conditions and a positive shift in investor sentiment. Looking beyond 2025, the estimate for 2026 stands at an impressive $200 million, buttressed by a strong recovery in tourism, domestic economic growth, and abundant available capital.

Southeast Asia’s Role in Hotel Investments

Vietnam is poised to play a key role in the Southeast Asian hotel market, which is forecasted to maintain its historical share of 10-13% of the total hotel investment volume across the Asia-Pacific region. This marks a return to pre-pandemic levels, allowing Vietnam to capitalize on its strategic position in the region.

Le Trang, the country head of JLL Vietnam, highlighted that despite political uncertainties posing some challenges to transaction activities, interest from investors remains robust. Foreign buyers are increasingly focusing on well-established assets with long lease terms in major destinations. Meanwhile, domestic investors are becoming more active, particularly in urban hubs like Hanoi and Ho Chi Minh City.

Tourism Recovery: Revenue and Visitor Growth

Numbers from the Vietnam National Authority of Tourism reveal that the country’s tourism revenue has fully rebounded from pandemic lows. In 2024, Vietnam achieved an extraordinary tourism revenue of approximately VND840 trillion ($32 billion), marking an impressive VND84 trillion ($3.2 billion) increase compared to pre-pandemic figures in 2019.

The outlook for 2025 is equally promising, with aspirations to welcome 22–23 million international visitors and project total revenue to reach between VND 980 trillion and VND1.05 quadrillion ($37.6 to $40.3 billion). Major contributors to this growth include an uptick in cruise tourism, business events, and significant social gatherings, bolstered by new itineraries introduced by major cruise lines such as Royal Caribbean and MSC Cruises.

Shifts in Visitor Demographics

While Mainland China traditionally served as Vietnam’s top source market, accounting for 32% of all visitors before the pandemic, it now comprises 24% in early 2025. However, this number is beginning to rise again, with early arrivals reaching 29% in the first eight months of the year, exceeding pre-pandemic levels. Other markets like Russia (206% growth) and Cambodia (71% growth) are showing significant resilience, while continued demand from South Korea, Taiwan, the US, Japan, and a burgeoning interest from India adds further diversification to Vietnam’s tourism landscape.

Key Drivers of Future Growth

A multitude of factors fuel Vietnam’s optimistic forecast. Notably, favorable visa policies, long-term security and stability, and proactive tourism promotion, especially in European markets, fortify its appeal as a destination. Additionally, initiatives focusing on sustainability and digitalization are transforming the hospitality supply landscape, particularly within the upscale segment.

Le Trang emphasized that the market could witness a significant rise in investor demand if quality assets become available. “If owners bring quality assets to market, we see significant scope for Vietnam to capture increasing investor demand over the next 18 months,” she stated.

Record-Breaking Visitor Arrivals

Supporting this optimism, the latest data from the General Statistics Office indicates that Vietnam welcomed nearly 14 million international visitors in the first eight months of 2025—an increase of almost 22% compared to the same timeframe last year. The month of August alone recorded over 1.68 million arrivals, showcasing an 8% increase from July and marking the highest August figure recorded in recent years.

Adapting to Global Trends

As sustainability increasingly influences travel choices, Vietnam’s hospitality sector is evolving to meet these demands. The industry is keen to align with these trends, adapting operational models to appeal to eco-conscious travelers.

In line with these insights, JLL’s findings outline a dynamic outlook for Vietnam’s hospitality and hotel investment landscape, setting a promising stage for the years ahead.