Ho Chi Minh City hotel stock has reached 25,500 rooms as new developments face significant delays, according to a recent market analysis.
Supply Stalls Amid Rising Demand
There are 265 properties across midscale and higher segments in the city. The market recorded RevPAR growth of more than 15% year-on-year in the first half of 2026. This strong performance comes despite the normalisation of seasonal demand following the Lunar New Year peak.
JLL reported that no new hotel supply entered the market in Q2. This has left the city with approximately 25,500 rooms. The stable supply base has supported market fundamentals amid steady demand. Quarter-on-quarter performance moderated as holiday-related demand effects faded, but average daily rates remained strong while occupancy was stable.
The combination indicates that operators have been able to sustain raised room rates despite more normal seasonal conditions. With supply growth effectively stalled and tourism demand continuing to support the market, JLL expects ADR and RevPAR to maintain positive growth through the second half of 2026, particularly during upcoming peak travel periods.
Repositioning Potential
The market also retains substantial potential for repositioning. Around 60% of properties remain unbranded, according to JLL. This creates opportunities for owners to capture additional value through repositioning and brand affiliation as international hotel operators expand their presence in the city.
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Owners currently holding unbranded assets might find that aligning with a major chain offers a clear path to higher returns. In a market where new builds are scarce, the value of upgrading existing stock often outweighs the cost of renovation.
Project delays have pushed most new developments into 2027, including Best Western Central Home Saigon and Caption by Hyatt Saigon. The supply outlook remains tight through the end of 2026.
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