Knight Frank's Q2/2025 Vietnam Real Estate Market Report shows that relaxed visa policies and new direct international flights continue to support the recovery of 5-star hotels in Ho Chi Minh City and Hanoi .
About 4 million VND/room/night at a 5-star hotel in Ho Chi Minh City
In the first half of 2025, the average daily room rate at 5-star hotels in Ho Chi Minh City increased to 152 USD/room/night (about 4 million VND), up 2.4% over the same period last year. This increase is thanks to more than 22.1 million domestic and international tourists .
Vietnam welcomed more than 10.6 million international visitors in the first half of this year.
The opening of a new branded hotel project, Hotel Indigo Saigon The City (HCMC) by IHG, also contributed to the increase in rents, with high average asking rents at USD200/room/night.
The average room rate of 5-star hotels in Hanoi also increased by 2.6% compared to the same period last year, to 135 USD/room/night, supported by good performance of existing hotels in the context of a significant increase in domestic and international tourists. Hanoi welcomed about 15.5 million domestic and international visitors.
In the first half of 2025, Hanoi's new supply includes Dusit Le Palais Tu Hoa in the West Lake area, recording an average room rate of USD 124/room/night.
Notably, the average occupancy rate increased in both Ho Chi Minh City and Hanoi to 70% (up 4.6 percentage points) and 67% (up 2 percentage points year-on-year), respectively.
Expectations for tourism to continue to improve
By the end of this year, the five-star hotel market in Hanoi is expected to have about 500 more rooms from three new hotels. Ho Chi Minh City is not expected to have any new five-star hotels until 2027, thereby maintaining average daily room rates and higher room occupancy.
According to Mr. Son Hoang, Deputy Director of Valuation and Market Research Department - Knight Frank Vietnam, the hotel industry has benefited from the relaxation of visas along with the increase in direct flights from Europe, the Middle East and India, as well as major events during the recent April 30 holiday, tourism activities have been significantly boosted.
With the trend of international visitors to Vietnam showing strong growth in Hanoi and Ho Chi Minh City, it is expected that the 5-star hotel segment will perform well until the end of 2025 and beyond.
Recent statistics from digital travel platform Agoda also show that Vietnamese tourists increasingly favor short-term travel trends. In particular, Ho Chi Minh City unexpectedly surpassed many destinations to enter the top list of choices for hotel bookings in the first 5 months of 2025.
Similarly, the number of customers searching for room reservations for the September 2 holiday also increased dramatically, up to 44 times compared to the same period last year, when tourists from all over flocked to the capital to visit and watch the parade.
According to the Vietnam National Administration of Tourism, in the first half of 2025, the total number of international visitors reached more than 10.6 million; the total number of domestic visitors reached 77.5 million. Total revenue from tourists is estimated at about 518,000 billion VND.
Source: https://nld.com.vn/gia-khach-san-5-sao-o-tp-hcm-ha-noi-tang-vot-len-toi-4-trieu-dong-phong-dem-196250711083450506.htm
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