HCM CITY — JLL Vietnam, a property market researcher, has recently increased its 2025 forecast for Vietnamese hotel investment volume from US$100 million to $125 million, reflecting a strong belief in the market's growth prospects and rising attractiveness to both domestic and foreign investors.

“JLL anticipates major deals will continue to concentrate on prime urban hotels and high-end resort developments in the coming years, involving both domestic and international investors,” commented Karan Khanijou, senior vice president, Asia Hotels & Hospitality Investment Sales at JLL. 

The hotel investment sector continues to draw considerable interest, with recent deals yielding between 6 per cent and 7.5 per cent, closely aligning with investor expectations of 8 per cent to 9 per cent.

Việt Nam is solidifying its position as Southeast Asia's fastest-growing tourism hub, having welcomed 13.9 million international visitors in the first eight months of 2025, a remarkable 21.7 per cent increase from the same period last year.

The "Vietnam Hotel Investment Guide 2025" by JLL and DN Legal highlights the impactful legal reforms propelling growth in the hospitality sector. The guide indicates a sustainable 7 per cent compound annual growth rate in hotel supply through 2024, totaling over 185,000 rooms across 1,500 properties, with upscale and luxury segments representing 57 per cent of the total supply as of July 2025.

HCM City, Hà Nội, and Đà Nẵng are the top three hotel markets, while looking ahead to 2028, Hà Nội, Đà Nẵng and Hội An lead projections for new hotel projects, with 33 per cent of the future supply forecast to be in the mid-range segment.

Hotels have been reporting robust performance, with 20 per cent year-on-year growth as of July 2025, supported by consistent increases in occupancy rates. Revenue per available room, measured in local currency, has shown average annual growth of 21 per cent from 2020 to 2024.

JLL said Việt Nam is undergoing comprehensive legal reforms that are creating an unprecedentedly favourable investment environment. 

The Land Law 2024, effective from August 1, 2024, allows for more flexible land price adjustments within the same year – instead of every five years previously – introducing greater transparency in land valuation.

On July 1, 2025, the Vietnamese Government began an extensive administrative restructuring, consolidating 63 provinces and cities into 34 new provincial-level units. Key ministries have also merged to form a more streamlined administration. This consolidation not only optimises Governmental operations but also opens opportunities to upgrade transportation networks, enhance service quality, and improve accommodation standards.

The Law on Personal Data Protection, effective January 1, 2026, will impose strict data protection obligations on hotels with international best practice compliance, enhancing both the reputation and competitiveness of Vietnamese hotels.

The combination of flexible visa policies, comprehensive legal reforms, and effective administrative restructuring is paving the way for sustained growth in Việt Nam's hotel sector. 

The outlook for 2026 is optimistic, with a strong pipeline of quality hotels and continued growth in deal activity, provided the market maintains transparency and regulatory stability, Khanijou noted. Nonetheless, a key challenge for the market remains the limited supply of assets meeting institutional investors' standards. — VNS