Vietnam's Hospitality Boom: A US$9.9 Billion Industry by 2029

Based on information from Skills Bridge CEO Thái Vân Linh, Mordor Intelligence, and Vietnam Investment Review, Vietnam’s tourism sector is booming. Over three million visitors came in the first two months of 2024 alone — a 68.7% increase from the year before. Leading this boom in tourism are South Korea, Taiwan, and India, bringing the number of visitors back to pre-pandemic levels. By the end of the year, 17–18 million tourists are anticipated, which will increase hotel occupancy rates all around the nation.

To meet the rising demand, Vietnam’s hotel industry is rapidly expanding. There are currently 253 hotel projects in the pipeline, set to add over 88,827 rooms. Major international hotel chains are capitalizing on this growth. For instance, Marriott International is launching seven new hotels and resorts. Key cities like Ho Chi Minh City, Hanoi, and Danang are becoming hotspots for luxury four- and five-star hotel developments.

Vietnam’s hospitality sector is thriving thanks to a blend of international and domestic brands, including giants like Marriott and Accor. New visa policies and government stimulus programs are accelerating tourism recovery. This year, the industry is expected to generate US$35.4 billion in revenue. Hotel occupancy rates are climbing, with Ho Chi Minh City seeing a 17.8% increase and Hanoi’s revenue per available room approaching pre-pandemic levels at US$117. Danang is also experiencing a notable uptick, showcasing the sector’s robust recovery.

Pierre Marechal, vice president of strategic advisory and asset management at JLL, revealed a list of the hottest markets in Asia-Pacific (excluding China and India) based on new hotel room inventory that is expected to enter the market this year:

1. Vietnam: 41,000 rooms

2. Indonesia: 20,000 rooms

3. Malaysia and Thailand: 18,000 rooms

4. Japan: 13,000 rooms

5. Australia and the Philippines: 12,000 rooms

Vietnam’s hospitality industry is poised for continued growth, driven by a strong tourist influx and an ambitious hotel construction pipeline. The focus on high-quality accommodations ensures a bright future for both domestic and international travelers. By 2029, the market size is projected to nearly double, reaching US$9.9 billion with a CAGR (compound annual growth rate) of 13.9%. Vietnam’s hospitality boom is just getting started.

---

The best way to compound wealth while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund compounds maximum value over time with minimum risk, regardless of the global market environment.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.