Premium hotel supply set to expand across Vietnam

Rêve HCMC - Vignette Collection by IHG and the Fairmont Hanoi were welcomed in Q1.

Avison Young Vietnam says Vietnam’s hospitality market recorded strong momentum in Q1/2026 as rising tourist arrivals and new premium hotel openings supported higher occupancy and room rates across key cities.

According to the consultancy, total tourist arrivals reached 17.8 million during the quarter, up 15% year-on-year, driving stronger demand for hospitality real estate.

In March, Ho Chi Minh City and Hanoi welcomed two new hotel projects: Rêve HCMC - Vignette Collection by IHG, with 52 rooms, and the 241-room Fairmont Hanoi.

Avison Young Vietnam said average daily rates in the 4-star and 5-star segments recorded solid growth. In HCMC, room rates averaged USD197 per night for 5-star hotels and USD136 per night for 4-star properties. In Hanoi, the entry of the Fairmont brand helped lift high-end room rates by 6% to USD185 per night.

The consultancy expects premium hotel supply to continue expanding with upcoming projects including Caption by Hyatt Ba Son, The Okura Prestige Saigon and Hyatt Regency Ho Tram in HCMC, alongside Hanoi Shilla Monogram - B3CC1 Complex, Hyatt Centric Hanoi Centre and Four Seasons Hotel Hanoi in the capital.

In Da Nang, market performance improved significantly following administrative restructuring, with occupancy and revenue rising sharply compared with Q1/2025. By the end of the quarter, room rates had increased 10% year-on-year, with average rates reaching USD68 per night for 4-star hotels and USD292 per night for 5-star properties. Occupancy rates stood at 85% and 88% respectively.

Avison Young Vietnam said future developments including Mandarin Oriental, The Arbora Residence and Vinhomes Hai Van Bay are expected to support Da Nang’s transition from a mass tourism destination toward a higher-end resort market.