Continued international tourist arrivals drives higher occupancy rates

• The third quarter of 2025 is the first quarter with tourism data incorporating the new HCMC post-provincial merge. However, this report continues to use data from the former HCMC boundary to ensure consistency and will do so until further adjustments are announced.
• In Q3, the former HCMC welcomed 1.9 million international visitors, driving the nine-month (2025) total to 5.8 million (up 44.5% y-o-y). During which, domestic arrivals reached 29 million, up 6% y-o-y. Combined, these generated USD 6.97 billion in revenue, nearly matching 2024’s full year.

Unbranded hotels dominate the market, indicating strong potential for future upgrading and rebranding demand

• Since the opening of Suzu Hotel in Q4 2024, HCMC’s hotel market has seen muted new supply activity. Sheraton Saigon Grand Opera Hotel completed renovations in 3Q 2025, returning 105 keys to the market.
• With more than 25,000 keys in the Midscale and above segments citywide, unbranded hotels still dominate with 63% of total keys. This rises to 90% in the Midscale segment and 65% in Upper Midscale, indicating significant potential for future upgrading and rebranding demand.

JLL makes an impressive mark on the capital market with the successful sale of PARKROYAL Saigon

• RevPAR performance saw robust growth, driven by consistently improving occupancy rates that increased significantly from last quarter and compared to the same time last year. ADR remained stable q-o-q and Y-o-Y, with slight increases attributed to exchange rate adjustments.
• In Q3 2025, JLL completed two hotel transactions in Vietnam, selling to both a domestic investor and an international investor group, in both an urban and resort destination, demonstrating the continued activity in Vietnam’s hotel capital markets and breadth of demand for assets.

Outlook: New supply remains constrained in the former HCMC boundary

• In Q4 2025, the market will welcome the Vignette Collection, an IHG luxury brand with a 52-key boutique-style hotel in the city centre. 2026 will see continued supply constraints in the former HCMC, as most projects remain on hold with projected opening dates now pushed beyond Q4 2026.
• After the merger, HCMC tourism adjusted its 2025 targets to increase international visitors by 30-40% and domestic visitors by 15-20%, while revenue from marine tourism, industrial tourism and cruise ships is expected to double.