Tourist recovery boosts occupancy gains

• Vietnam’s tourism sector recorded strong growth in Q1 2026, positioning it among the fastest-growing markets in APAC. Favourable visa policies drove international arrivals to 6.8 million (+12.4% Y-o-Y) while robust domestic demand saw 37 million visitors (+24.5% Y-o-Y).
• Reflecting this strong national performance at city level, HCMC was a key driver of growth, attracting a remarkable 20 million visitors in the first quarter. This underscores the city’s appeal and cements its role as the country’s main commercial and tourism gateway.

Local hotel operators expand footprint in Q1 2026

• HCMC’s midscale hotel segment saw a new addition with the opening of Kin Hotel Central Park. Located in the city centre, the property added 82 rooms to the market. This launch marks the sixth hotel for local operator Kin Group, with a focus on providing a lifestyle-oriented experience catering to both leisure and business travellers.
• Among approximately 25,500 hotel rooms across 265 operational properties in the midscale and higher segments in the city, unbranded hotels comprised roughly 60%, indicating a notable opportunity for owners to enhance value through property upgrades and rebranding efforts.

HCMC’s hotel sector continued its robust momentum, recording double-digit annual RevPAR growth

• HCMC’s hotel sector demonstrated robust momentum, with RevPAR posting impressive double-digit growth of 19.3% Y-o-Y. This strong performance was underpinned by a combination of elevated occupancy rates and strengthened ADR, largely driven by peak demand during Lunar New Year.
• Growth in ADR was particularly strong, increasing by 5.4% q-o-q and a notable 19.3% Y-o-Y. This surge highlights significant pricing power within the market, demonstrating operators’ ability to capitalise on heightened tourism demand.

Outlook: New high-quality supply to remain tight through 2026

• Looking ahead, HCMC’s hotel supply pipeline is expected to remain constrained through 2026. Significant development delays are pushing most new project openings beyond year-end.
• With the supply pipeline constrained and tourism demand high, operators are positioned for strong pricing power. The market expects continued ADR and RevPAR growth for existing hotels through 2026.