Vietnam’s hospitality sector is emerging as South-east Asia’s strongest growth story, with Central Vietnam positioned to capture rising demand, bolstered by 10.7 million international arrivals in 1H2025 – a 21 per cent rise year-on-year.
Presenting STR’s latest market analysis at HORECFEX 2025 in Danang, Alice Swe, sales manager for South and South-east Asia, STR, highlighted how relaxed visa policies, new air connectivity, and shifting traveller preferences, particularly from Gen Z and Chinese tourists, are fuelling a rapid upswing.
Among regional competitors, Vietnam recorded the highest hotel performance growth in the first half of 2025.
While Singapore and Thailand remain more stabilised markets, Vietnam’s late post-Covid recovery has been followed by sharp upward momentum.
“Vietnam’s hotel market continues to maintain pace, with demand growth consistently outpacing supply growth since recovery,” Swe stated.
“Occupancy is on a positive trajectory, with Average Daily Rates (ADR) now clustering around the US$100 mark, placing Vietnam alongside Malaysia and the Philippines, though still trailing Singapore and Thailand,” she added.
RevPAR growth continues on an upward trend, even as year-on-year gains moderate after the sharp rebound of 2022–23.
“Across all chain scales – economy through upper-upscale – performance indicators are rising, with luxury and upper-upscale leading in rate increases,” she elaborated.
Swe also underscored Central Vietnam’s resilience and potential.
“Vietnam’s coastal and urban destinations are not only recovering but surpassing regional benchmarks. The coastal and leisure markets are powering the country’s hospitality growth through 2025,” Swe noted.
Beach and resort destinations such as Danang, Nha Trang, and Cam Ranh are also benefitting from robust international interest and expanded air connectivity, driving demand well ahead of supply.
Danang and Nha Trang, both balancing beach and city appeal, have shown consistent occupancy improvements since mid-2022.
While Nha Trang briefly outperformed Phu Quoc through late 2024, the island surged ahead in 2025 on the back of overwhelming demand.
“Phu Quoc, particularly, is experiencing strong YoY demand growth in 2025, clearly outperforming other markets in popularity,” Swe underscored.
Ho Chi Minh City and Hanoi continue to lead urban markets, already surpassing pre-pandemic ADR levels.
In Danang specifically, occupancy in 1H2025 outpaced the previous two years, though not yet at pre-Covid peaks.
She pointed out that ADR has rebounded strongly, with healthy RevPAR growth driven by both leisure and corporate segments. Additionally, peaks in January, May, July, and August confirm Danang’s appeal as a year-round destination.
“Supply pipelines remain robust. Both Danang and Nha Trang are seeing new project announcements aligned with demand growth, while Cam Ranh International Airport already handles 32 flights daily – 19 from South Korea – reflecting strong North-east Asian appetite,” Swe noted.
