Hotel Market size to increase by USD 4.1 billion - Technavio

Market Overview and Key Drivers

The Vietnam hotel market is riding a wave of opportunity as the country solidifies its position as a top travel destination in Southeast Asia. Technavio’s latest report, Vietnam Hotel Market 2024-2028, identifies the booming tourism sector both domestic and international as a primary growth driver. Vietnam welcomed millions of visitors in 2024, a trend expected to accelerate with government initiatives promoting cultural heritage and natural attractions like Ha Long Bay and Da Nang’s beaches. Coupled with this, rapid urbanization and rising disposable incomes are boosting demand for diverse accommodation options.

The Vietnam hotel market is thriving due to a perfect storm of tourism growth and infrastructure investment. “From luxury resorts to budget-friendly stays, the market is adapting to meet the needs of a diverse traveler base.”

Additional growth factors include increasing foreign direct investment in hospitality, the rise of eco-friendly and smart hotels, and the expansion of business travel due to Vietnam’s growing economy. Challenges such as seasonality and competition from short-term rentals like Airbnb exist, but the market’s upward trajectory remains strong, supported by demand and strategic development.

Trends and Opportunities

The Technavio report identifies several trends shaping the Vietnam hotel market:

• Sustainable Tourism: Eco-friendly hotels using solar power and waste reduction are gaining traction.
• Smart Technology: Contactless services and AI-driven personalization enhance guest satisfaction.
• Rise of Domestic Travel: Local tourists are fueling demand for mid-range and budget accommodations.

Opportunities abound for hoteliers who can cater to niche markets, such as wellness tourism in Da Lat or adventure travel in Sapa. The growth of MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism in Hanoi and Ho Chi Minh City also presents a lucrative avenue for business-focused properties.

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Market Segmentation Insights

Technavio’s report segments the Vietnam hotel market by type, application, and geography, providing a comprehensive view of its dynamics:

Type:

• Chain Hotels: The dominant segment, driven by international brands expanding into key cities and tourist hubs.
• Independent Hotels: Growing steadily, appealing to travelers seeking local charm and personalized experiences.

Application:

• Tourist Accommodation: The largest segment, fueled by leisure travelers exploring Vietnam’s cultural and natural landmarks.
• Official Business: Expanding with the rise of corporate travel and international conferences in cities like Ho Chi Minh City and Hanoi.

Geography:

• APAC: Vietnam contributes significantly to the region’s 42% share of global hotel market growth, led by urban centers and coastal regions.
• North America, Europe, Middle East and Africa, South America: Smaller but notable contributions from international travelers to Vietnam.

APAC’s Dominant Role in Market Growth

Vietnam’s role in APAC to global hotel market growth is a standout finding in the Technavio report. The country’s tourism sector is flourishing, with cities like Ho Chi Minh City, Hanoi, and Da Nang emerging as hotspots. In 2024, Vietnam saw a record number of international arrivals, bolstered by visa-free policies and aggressive marketing campaigns. Urban development projects, including new airports and transportation networks, are enhancing accessibility, while coastal areas like Phu Quoc attract luxury resort investments.

“Vietnam is a shining star in APAC’s hospitality landscape,” the Technavio analyst noted. “Its blend of affordability, cultural richness, and modern infrastructure is drawing travelers and investors alike.”

Leading Companies Shaping the Market

The Vietnam hotel market is competitive, with a mix of global chains and local players driving innovation and expansion. Technavio’s report highlights 10 key companies influencing the industry:

• Marriott International Inc. – Operates brands like JW Marriott and Sheraton in prime locations.
• Accor S.A. – Offers a range from luxury Sofitel to budget Ibis hotels across Vietnam.
• InterContinental Hotels Group (IHG) – Features properties like InterContinental Hanoi Westlake.
• Hyatt Hotels Corp. – Known for Park Hyatt Saigon and other upscale offerings.
• Vinpearl – A leading domestic player with resorts in Nha Trang and Phu Quoc.
• Muong Thanh Hospitality – Dominates with a widespread network of affordable hotels.
• Minor International PCL – Operates Anantara resorts in tourist-heavy regions.
• Central Plaza Hotel Public Co. Ltd. – Expands with Centara-branded properties.
• Four Seasons Hotels Ltd. – Targets luxury travelers with developments like Four Seasons Hoi An.
• Hilton Worldwide Holdings Inc. – Grows with Hilton and DoubleTree brands in urban centers.

These companies are investing in sustainable practices, digital check-in systems, and tailored guest experiences to capture market share in Vietnam’s dynamic hospitality sector.

Why This Matters

For stakeholders in the hospitality and tourism industries, this report provides critical insights into the Vietnam hotel market’s growth potential. With a projected increase of USD 5.12 billion by 2029, the market offers a wealth of opportunities for investment, expansion, and innovation. Hotel operators, developers, and policymakers who leverage Vietnam’s tourism momentum and urban growth can position themselves as leaders in one of APAC’s most promising markets, delivering value to travelers and boosting economic development.

About Technavio

Technavio is a leading global technology research and advisory company, delivering actionable market insights through its extensive library of over 17,000 reports, covering 800 technologies across 50 countries. With a team of more than 500 specialized analysts, Technavio supports enterprises of all sizes, including over 100 Fortune 500 companies, in identifying opportunities and optimizing their market strategies.