This content is an excerpt from Savills Impacts, a global report on real estate trends that will shape the market in 2025. It is curated and supplemented with local insights from Savills Viet Nam. 

Global tourism has made a full recovery, prompting increased investor interest in the hotel sector. 

Tourism’s recovery and real estate impacts  

1. Global tourism returns to pre-pandemic levels 

As people around the world regain their appetite for travel, global tourism continues to recover. A strong demand for travel, particularly in markets that provide the most tourists, and the ongoing recovery of destinations in Asia and the Pacific drove the increase, with most destinations exceeding 2019 levels. In 2024, on a global scale, 1.4 billion international tourists (overnight visitors) were recorded, representing an increase of 140 million, or 11%, from 2023 levels, and confirming international tourism has returned to pre-pandemic levels. 

2. Growing investor interest in hospitality real estate 

A resurging travel sector has significant implications for the real estate sector. Operational real estate (of which hotels are the most mature asset class) is increasingly attractive as investors find the revenue streams that hospitality assets provide appealing, particularly in the context of recent high inflation and debt costs. Strong underlying demand has also boosted hotel occupancy levels and average daily room rates (ADR), upwards of 2.6% to US$142 per night in 2024, further supporting investor confidence.  

3. Viet Nam landscape     

In Viet Nam, the tourism sector has shown a similarly impressive recovery, thanks to a combination of factors such as visa exemptions, effective destination marketing by local authorities and private stakeholders, and improved connectivity. 

• First 5M/2025: Viet Nam welcomed 9.2 million international visitors, marking a 21.3% year-on-year increase.  
• 5/2025: 1.53 million international arrivals were recorded, representing a 10.5% increase from the same period in 2024 
• Key markets: China (25.7%), South Korea (20.7%), followed by Taiwan, the US, Japan, Cambodia, India, Australia, Malaysia, and Russia.  

Source: The General Statistics Office (Ministry of Finance)  

The recovery is expected to continue into 2025, with preliminary forecasts projecting 3–5% growth in international arrivals. In parallel, Viet Nam is experiencing a resurgence in hotel and resort development, particularly in coastal destinations like Da Nang, where new supply in some areas is outpacing demand. 

Local authenticity and comprehensive infrastructure

Echoing this trend in Viet Nam, Matthew Powell, Director of Savills Ha Noi, observes a similar shift in the local hospitality market. Developers and operators are increasingly integrating local design elements, materials, and cultural influences to reflect each destination’s unique character, whether urban, resort, or heritage. Equally, Vietnamese hospitality is being showcased through thoughtful service design and staff training, creating experiences that are both personalised and deeply rooted in local culture. 

“Hospitality in Viet Nam is moving away from standardised, international templates. Instead, there is growing focus on authenticity and sense of place, particularly in the high-end segment, where guests expect locally inspired luxury”, adds Powell. 

Today, travellers are returning to popular destinations in Viet Nam, thanks to the development of comprehensive infrastructure, resort facilities, and direct flight connections. This marks a critical turning point, reflecting the country's growing competitiveness on the global tourism stage.  

Local authenticity and comprehensive infrastructure

Echoing this trend in Viet Nam, Matthew Powell, Director of Savills Ha Noi, observes a similar shift in the local hospitality market. Developers and operators are increasingly integrating local design elements, materials, and cultural influences to reflect each destination’s unique character, whether urban, resort, or heritage. Equally, Vietnamese hospitality is being showcased through thoughtful service design and staff training, creating experiences that are both personalised and deeply rooted in local culture. 

“Hospitality in Viet Nam is moving away from standardised, international templates. Instead, there is growing focus on authenticity and sense of place, particularly in the high-end segment, where guests expect locally inspired luxury”, adds Powell. 

Today, travellers are returning to popular destinations in Viet Nam, thanks to the development of comprehensive infrastructure, resort facilities, and direct flight connections. This marks a critical turning point, reflecting the country's growing competitiveness on the global tourism stage.  

Diverse geography boosts investment potential 

A number of emerging trends are shaping investor interest. 

1. Hotels & resorts 

• Countryside and mountain resorts: Target the luxury wellness segment with diversifying offerings within established resort hubs.  
• New destinations, particularly those linked to upcoming infrastructure projects: Investors are increasingly looking beyond traditional markets, aiming to tap into emerging demand areas and anticipate future connectivity opportunities. 

International hotel brands are increasingly drawn to coastal hotspots like Da Nang, Hoi An, Nha Trang, Ha Long, and Phu Quoc. These destinations offer premium real estate, world-class architecture, professional management, and elevated lifestyle experiences, reassuring investors of strong long-term asset value, even when properties are not owner-occupied. 

2. Branded residences 

Alongside hotel and resort growth, Viet Nam is witnessing a notable rise in branded residences and specialised, purpose-built developments. This segment is dynamic and rapidly expanding, led by ultra-luxury global hotel brands. Their success lies not only in offering exceptional guest experience but also in the global recognition and prestige of their brands, an increasingly important factor for discerning investors. 

Key considerations for investors  

The Savills Ha Noi director also highlights that investors exploring hospitality opportunities in Viet Nam should conduct thorough due diligence across several key areas. 

• The future supply pipeline and competitive dynamics 
• Infrastructure improvements 
• Regulatory clarity  
• Operational performance 
• Management partners’ experiences

Learn more about the theme of adaptation and IMPACTS 2025 articles

• Tenants gain leverage as Ha Noi office market shifts 
• Five years, five big changes: The trends shaping what tenants want from offices
• Examining Viet Nam's opportunity to attract global high-net-worth investments 
• Geopolitical risks: Impacts on global real estate and opportunities for Viet Nam 
• New investment strategy in Viet Nam