The hospitality industry is a broad category of fields within the service industry that includes lodging, food and beverage services, event planning, theme parks, travel agency, tourism, hotels, restaurants, nightclubs, and bars.
This comes after an estimated 12-14% growth in RevPAR (revenue per available room) in FY24, driven by robust demand outpacing supply.
The recovery is fueled by healthy domestic leisure and business travel demand, complemented by increasing foreign tourist arrivals.
While new supply is expected at a 4-5% CAGR over 4-5 years adding over 50,000 branded rooms, this delayed catch-up will allow demand-supply dynamics to gradually align.
With high occupancies of 68-70% forecast for FY25, the strong RevPAR growth should aid in improving the credit profile of industry players.
The hotel industry in Vietnam is an important economic sector, contributing significantly to the country's GDP.
[28][29][30] According to statistics from the Vietnam National Administration of Tourism, the Vietnamese hotel industry has had an average growth rate of 15% per year in the period 2010-2022.