Tourism momentum sustained by broad-based visitor growth

• Vietnam’s tourism sector maintained its robust trajectory in Q2 2026, continuing to rank among APAC’s fastest-growing markets. In the first half of the year, international arrivals reached 12.3 million, up 14.9% Y-o-Y, reflecting sustained momentum.
• At the city level, HCMC maintained its position as the nation’s primary tourism and commercial hub, attracting 33.5 million visitors, including 6.4 million international tourists, in H1 2026, reinforcing its critical role in driving national tourism growth.

No new hotel supply entered the market in Q2 2026

• HCMC’s hotel market recorded no new openings during Q2 2026. The city’s inventory remained stable at approximately 25,500 rooms across 265 operational properties in the midscale and higher segments, maintaining consistent supply levels amid steady demand.
• With roughly 60% of properties remaining unbranded, the market continues to present significant opportunities for owners to capture additional value through strategic repositioning and brand affiliation, particularly as international operators expand their presence.

Strong RevPAR Y-o-Y growth amid normalising seasonal demand

• HCMC’s hotel sector posted solid H1 2026 performance, with RevPAR advancing more than 15% Y-o-Y. This growth reflects sustained market pricing power despite softer seasonal demand patterns following the Lunar New Year peak, demonstrating strong market fundamentals.
• Quarter-on-quarter metrics normalised following holiday seasonality. However, ADR demonstrated continued strength while occupancy remained stable, underscoring operators’ ability to maintain elevated rate structures.

Outlook: Constrained supply to support continued pricing strength through year-end

• Looking ahead, HCMC’s supply pipeline remains significantly constrained in the near term. Ongoing project delays continue to push most new developments into 2027, notably Best Western Central Home Saigon and Caption by Hyatt Saigon.
• With supply growth effectively stalled and tourism demand maintaining momentum, operators retain strong pricing leverage. The market expects ADR and RevPAR to sustain positive growth trajectories through H2 2026, particularly during upcoming peak travel seasons.