Limited new supply supports Ho Chi Minh City hotel outlook

Operators will be positioned for stronger pricing power.

Ho Chi Minh City's hotel market continued its strong recovery in Q1 2026, with double-digit RevPAR growth supported by robust tourism demand and limited new supply, according to JLL.

The city's midscale segment added 82 rooms during the quarter through the opening of Kin Hotel Central Park, the sixth property operated by local hospitality group Kin Group. JLL noted that unbranded hotels still account for around 60% of the city's approximately 25,500 rooms in the midscale and above categories, creating opportunities for repositioning and rebranding.

RevPAR increased 19.3% year-on-year, driven by stronger occupancy and ADR during the Lunar New Year period. ADR rose 5.4% quarter-on-quarter and 19.3% year-on-year, highlighting operators' growing pricing power.

JLL expects new high-quality hotel supply to remain constrained through 2026 as development delays push many projects beyond year-end. Combined with strong tourism demand, this is expected to support further ADR and RevPAR growth across existing hotels.