According to Knight Frank’s Q2 2025 Vietnam property market report, relaxed visa policies and new direct international flights are driving the continued recovery of five-star hotels in HCM City and Hanoi.
In the first half of this year, the average daily rate at five-star hotels in HCM City increased to around VND 4 million (USD 152) per night, up 2.4 per cent year-on-year, driven by more than 22.1 million domestic and international tourist arrivals.
Five-star hotel prices in Hanoi rose 2.6 per cent year-on-year to USD 135 per night, fuelled by a sharp rise in domestic and international arrivals. Between January and June this year, Hanoi welcomed a total of 15.5 million tourists.
In the first half of 2025, Hanoi’s new supply included Dusit Le Palais Tu Hoa in the West Lake area, with an average room rate of USD 124 per night.
Average occupancy rates rose in both HCM City and Hanoi from January to June, reaching 70 per cent and 67 per cent, respectively.
By year-end, Hanoi is set to add 500 five-star rooms from three new hotels, while HCM City, with no new supply expected until 2027, is likely to sustain higher rates and occupancy.
Son Hoang, deputy director of consulting and valuation at Knight Frank Vietnam, said that relaxed visa policies, more direct flights from Europe, the Middle East, and India, along with major April 30 holiday events, had significantly boosted tourism and the hospitality sector.
The Vietnamese tourism sector recorded a total of 10.6 million international arrivals and 77.5 million domestic ones, generating an estimated VND 518 trillion in tourism revenue between January and June this year.
