Hospitality sector heading towards new development cycle

Hospitality sector heading towards new development cycle

Meet The Experts (MTE), a business conference for the real estate and hospitality sectors, took place on March 18 in Ho Chi Minh City.

Organised by WeHub, Savills Hotels, and other partners, the biannual event brought together over 60 industry leaders and more than 1,000 investors, hotel owners, management companies, design firms, and consultants. MTE serves as a platform for collaboration, delivering forward-looking insights and strategic solutions to help stakeholders navigate challenges, seize opportunities, and drive sustainable growth in Vietnam’s evolving real estate and hospitality landscape.

According to Mauro Gasparotti, senior director, head of SE Asia Hotel Advisory and creator of the MTE series, commented that Vietnam’s hospitality market had experienced a strong year, with international tourist arrivals rebounding to pre-COVID levels.

“Nationwide, hotel occupancy rose by nearly 15 percentage points, while room rates saw an approximate 5 per cent increase, primarily driven by the luxury segment,” Gasparotti said.

Key destinations such as Nha Trang saw exceptional growth, with accommodated international arrivals surging by 125 per cent on-year in 2024.

Likewise, Phu Quoc experienced a significant tourism boom in late 2024, fuelled by a growing network of direct international flight routes.

“This positive momentum is expected to continue, particularly as Phu Quoc prepares to host the APEC Summit in 2027, further solidifying its status as a premier global destination,” added Gasparotti.

Mauro Gasparotti, senior director, head of SE Asia Hotel Advisory at MTE HCMC 2025. Source: WeHub

“Vietnam’s tourism landscape is undergoing a rapid transformation, with new business models, brands, and resorts redefining the market. Concepts such as branded residences, ultra-luxury residential developments, rooftop bars, beach clubs, wellness retreats, and all-inclusive resorts illustrate the sector’s dynamic evolution, seamlessly blending luxury, lifestyle, and destination appeal,” he added.

Meanwhile, emerging technologies like AI are poised to revolutionise travel, streamlining processes and personalising experiences for both leisure and business travellers.

“These innovations will drive the next phase of Vietnam’s hospitality and real estate growth, attracting top-tier brands and shaping the industry’s future. Now is the perfect time to reassess the industry as a long-term investment opportunity,” he added.

At the event, keynote speeches from industry leaders representing HotStats, Vinacapital, Savills Hotels, Minor Hotels, and CMV Architects provided in-depth insights into hotel trading performance on both global and local scales, as well as the real estate landscape from a developer’s perspective.

The presentations also highlighted successful case studies of mixed-use and all-inclusive resorts, offering valuable strategies for the future of the hospitality industry.

Senior executives from Accor Hotels Group, Masterise Group, SonKim Land, Sovico Hospitality Group, Minor Hotels, M Village, Fusion Hotel Group, and Club Med further shared their perspectives on Vietnam’s rapidly evolving hospitality market.

The panel discussion emphasised the increasing demand for innovative hospitality concepts, including midscale limited-service hotels, all-inclusive resorts, and lifestyle hotels and resorts, which are expanding opportunities for both developers and travellers.

Uyen Nguyen, associate director for Southeast Asia, Savills Hotels shared that infrastructure developments were transforming Vietnam’s hospitality landscape, with expansions planned for five airports – Cat Bi, Vinh, Dong Hoi, Ca Mau, and Phu Quoc – to increase capacity.

“In Ho Chi Minh City, the completion of the first phase of Long Thanh International Airport and its metro connection will significantly improve accessibility for both domestic and international travellers. This enhanced connectivity is expected to drive longer stays, boost hotel occupancy in non-CBD areas, and strengthen the city’s meetings, incentives, conferences, and exhibitions tourism sector,” Uyen said.

She added that hotels near metro stations, particularly in key commercial and tourist districts, were expected to experience higher demand and stronger room rates.

“As a result, new hotel developments will likely concentrate around major metro stops, with focused-service and lifestyle hotels leading the way. This may also create opportunities for the luxury hotel segment to expand beyond its current concentration in District 1,” she added.

At the MTE conference, industry leaders highlighted the rapid rise of branded residences and ultra-luxury properties in Vietnam.

As the country emerges as a key destination for high-end real estate, experts explored the factors driving this growth, including pricing premiums, buyer expectations, luxury interior design, and the increasing integration of wellness into residential developments.

Representatives from Savills, QUO, Group GSA, and Gamuda Land provided valuable insights, offering a comprehensive perspective on Vietnam’s evolving luxury property landscape.

Gasparotti remarked that buyers today are no longer just seeking property ownership or choosing a brand name, they are looking for a complete lifestyle package.

“To meet these expectations, developers must embrace wellness elements, sustainable design, and hospitality-inspired services, which are becoming defining features of high-end residential projects. Failing to uphold these standards could impact buyer confidence in the sector as a whole,” he said.

Vietnam’s capital markets continue to attract strong interest, particularly from Asian investors and family offices.

However, despite this demand, transaction volumes remain limited due to ownership complexities, regulatory challenges, and prolonged negotiation processes. Investors are particularly drawn to prime locations in key cities with strong infrastructure connectivity, prioritising assets that offer long-term value appreciation and stable demand.

The evolving legal framework and upcoming infrastructure projects, such as Long Thanh International Airport and metro system expansions, could significantly shape investment trends in the coming years, potentially unlocking new opportunities in both the hospitality and real estate sectors.

Vietnam’s tourism industry continues to gain momentum, driven by favourable visa policies, improved tourism infrastructure, and strategic marketing efforts from both local authorities and businesses. The country's strong reputation as a welcoming and safe destination further strengthens its global appeal.

According to the Vietnam National Tourism Department, in the first two months, Vietnam welcomed nearly four million international arrivals, a 30.2 per cent on-year increase, the highest growth rate in the region.

VIR