Vietnam welcomed nearly 10.6 million international visitors in the first half of 2025, a 24% increase compared to 8.5 million during the same period in 2019. This upward trend is expected to continue, driven by improved air connectivity and the steady recovery of major source markets.

According to a survey by Savills Vietnam, tourism in Ho Chi Minh City showed clear signs of recovery in Q2/2025 compared to pre-pandemic periods, primarily thanks to business travelers and demand from the MICE segment (Meetings, Incentives, Conferences, and Exhibitions). However, international arrivals have yet to return to 2019 levels, putting continued pressure on the luxury hotel segment.

In Q2/2025, the hotel supply in HCMC remained unchanged, holding steady at 16,622 rooms due to the absence of new projects. The trend of upgrading and repositioning existing hotels is gaining momentum as operators seek to improve competitiveness and customer experience.

Savills noted that Q2/2025 was the tourism industry's low season, typically occurring before the summer peak. During this time, the average occupancy rate reached 61%, with an average room rate of USD 77 per night. With future hotel supply in the city limited - only about 200 new rooms expected by 2027 - this constraint may help improve performance as demand gradually returns.

There were no new serviced apartment openings in Q2/2025 in HCMC, keeping the total supply stable at 8,000 units. The segment performed well, with an occupancy rate of 80% and an average rent of USD 20 per square meter per month.

HCMC also attracted USD 2.7 billion in foreign direct investment (FDI) in the first half of 2025, a figure expected to support continued growth in the serviced apartment segment.

In Hanoi, Savills Vietnam reported a total hotel supply of 10,986 rooms across 66 projects, marking a slight decrease of 1% quarter-on-quarter and year-on-year. In the second half of 2025, four new hotels are expected to add 1,138 rooms to the market - three 5-star and one 4-star property. The average occupancy rate stood at 72%, with an average daily rate of USD 108.

The supply of serviced apartments in Hanoi remained stable in Q2/2025 at 6,246 units across 64 projects. The inner-city area accounted for the largest share of supply at 60%. This segment is set to expand in 2025 with four new projects expected to deliver a total of 739 additional units. The average occupancy rate stayed at 86%, while the average rental price reached USD 24 per square meter per month.

In the past six months, Hanoi attracted USD 3.7 billion in FDI, which is anticipated to further stimulate demand for serviced apartments in the near future.

PV