Buying a Hotel in Vietnam: Essential Checklist

Published on October 2, 2025 and written by Cyril Jarnias

Buying a Hotel in Vietnam: Complete Checklist

Buying a hotel in Vietnam is an exciting adventure that can offer both lucrative opportunities and unique challenges. In this article, we will present you with a comprehensive checklist to navigate through Vietnam’s vibrant hospitality landscape.

From financial considerations to legal aspects and cultural specificities, this list is essential for any investor looking to succeed in this dynamic sector. Whether you’re an experienced professional or new to hotel investment, our guide will help you make informed choices to optimize your investment and achieve a harmonious project.

Overview of Vietnam’s Hospitality Market

Vietnam’s hotel industry is experiencing rapid growth, driven by booming international and domestic tourism, improved infrastructure, and favorable government policies. By 2025, the hotel market size is estimated to reach $2.87 billion USD with a projected compound annual growth rate (CAGR) of 19.4% until 2033. According to other sector analyses encompassing food service and related services, the hospitality market reaches $7 billion USD in 2024, potentially reaching $20.7 billion USD by 2033.

Current Key Trends:

• Continued increase in international arrivals: over 17.5 million international visitors in 2024, representing an annual increase of nearly 40%.
• Strong recovery of domestic tourism post-pandemic.
• Massive investments in tourism infrastructure: airport expansions (notably in Hanoi and Ho Chi Minh City), new road connections to major sites (Da Nang, Ha Long Bay), development of high-end coastal hotels.
• Upscaling of the hotel inventory with a focus on luxury and personalized experiences.

Indicator	Value/Forecast
Hotel Market Size	$2.87 Bn (2025) / >$10 Bn (2033)
Hospitality Sector Size*	$7 Bn (2024) / $20.7 Bn (2033)
Annual Growth	Between 12% and nearly 20%
International Arrivals	>17.5 million (2024), +39% vs. 2023
Average Occupancy Rates	Between 60% and 75% depending on region

Key Regions & Dynamic Cities:

• Ho Chi Minh City: Major economic center; strong corporate demand; numerous international projects.
• Hanoi: Strong business/cultural tourism dynamics.
• Da Nang & Nha Trang: Coastal hubs benefiting from rapid urbanization; sustained development of high-end properties.
• Ha Long Bay & Phu Quoc: Nature/luxury destinations highly sought after by foreign investors.

Influential Economic & Policy Factors:

• Robust national economic growth (+6%-7% annually).
• Pro-tourism policies: simplification of long-term e-visas; active international marketing campaigns; tax incentives for hotel investments in certain strategic provinces or coastal areas.
• Public support for tourism promotion digitalization via national/international digital platforms.

Conjunctural Factors/Potential Constraints:

• Strong seasonal fluctuations linked to Asian/European school holidays.
• Increased environmental pressure in certain sensitive tourist areas; growing need to integrate sustainable practices in new/existing hotel projects.

Key Economic Forecasts for Investors:

1. The hotel pipeline remains very active thanks to domestic/foreign investments – notably AccorHotels, Marriott International but also local groups Vinpearl/Muong Thanh Hospitality – which are multiplying openings & renovations between now and the end of the decade.
2. The “luxury”, coastal “resorts” segments as well as urban business hotels are expected to continue their growth above the overall market (>15%-20% annually expected locally).
3. The stable regulatory environment coupled with demographic dynamism provides fertile ground for new entrants as well as organic expansions for established players.

Prospects therefore remain resolutely positive for the Vietnamese hotel sector for this decade.

Investors must, however, pay particular attention to the evolution of regional competition but also to the accelerated adoption of sustainable standards required by an increasingly attentive international clientele.

Key Steps to Buying a Hotel in Vietnam

1. Preliminary Research

• Identify the hotel’s strategic location: prioritize major tourist areas (Hanoi, Ho Chi Minh City, Hoi An, Da Nang), taking into account accessibility, tourist appeal, and infrastructure.
• Analyze the local market: compare occupancy rates, seasonality, existing competition, and customer profiles. For example, an investor who opted for a boutique hotel in Hoi An benefited from the boom in local cultural tourism.
• Understand Vietnamese laws and regulations on real estate and foreign investment: foreigners can purchase certain types of properties but are subject to restrictions (ownership duration, property types, etc.). It is essential to consult a specialized local lawyer.

2. Financial Evaluation

• Explore financing methods: self-financing, borrowing from local banks (often requiring a personal contribution of 10-30%), or partnerships with local investors.
• Consider legal requirements: opening a VND account, payment in local currency, verification of eligibility for ownership.
• Estimate local taxes (transfer tax, VAT, corporate taxes, etc.) and hidden costs (maintenance fees, legal fees, agent commissions, compliance costs).
• Example: A French investor had to budget an additional 2% for maintenance and operational costs, often underestimated during the initial purchase.

Financing Type	Main Conditions	Points of Caution
Local Bank	Min. 10-30% contribution, guarantees required	Strong application, variable rates
Local Partnership	Joint-venture, management sharing	Clear contract, profit sharing
Equity	Freedom, speed	Personal risk

3. Selecting a Local Real Estate Agent

• Relying on an experienced agent facilitates the search, negotiation, verification of property titles, and understanding of local practices.
• The agent can recommend compliant properties, negotiate prices with sellers, and navigate complex legal procedures.
• Anecdote: An investor saved 15% on the purchase price thanks to negotiation led by an agent who mastered the subtleties of the Ho Chi Minh City market.

4. Inspection and Due Diligence

• Have the hotel inspected by technical experts (building condition, compliance with safety standards, electrical and sanitary installations).
• Verify legal compliance: absence of disputes, valid operating licenses, compliance with accessibility and hygiene standards.
• Review ongoing contracts (staff, maintenance, suppliers) to anticipate future costs.
• Practical examples: An investor discovered an ongoing dispute during due diligence, thus avoiding a risky acquisition.

5. Negotiation and Purchase

• Adopt a negotiation strategy based on comparative evaluations, the hotel’s condition, and market trends.
• Negotiate payment terms: non-refundable deposit, installment payments, conditional clauses (obtaining permits, absence of disputes).
• Finalize the acquisition by signing a sales contract compliant with Vietnamese legislation, in the presence of a notary or lawyer.
• Anecdote: A buyer negotiated a price revision clause following the discovery of necessary repairs, thus securing their investment.

6. Legal and Administrative Formalities

• Property registration with local authorities (obtaining the “pink book” for full ownership).
• Tax declarations and payment of transfer duties.
• Obtain operating permits (hotel license, fire compliance, signage permit, etc.).
• Verify the update of insurance contracts.
• Example: After purchase, a team had to wait two months to receive the operating license due to lack of administrative anticipation.

7. Implementation of the Management Plan

• Define an operational management plan: staff recruitment, training to local standards, implementation of internal procedures adapted to Vietnamese culture.
• Consider logistical aspects (supply, local partnerships, reservation management via international platforms).
• Adapt the offering to customer expectations (Vietnamese breakfast, services tailored to Asian and Western tourists).
• Success examples: A hotel in Da Nang doubled its occupancy rate by collaborating with local travel agencies and training its staff in multilingual hospitality.

At each stage, preparation, local professional support, and anticipation of administrative constraints are the keys to a successful hotel investment in Vietnam.

Due Diligence: What to Check Before Purchase

Legal and Tax Analysis

Before acquiring a hotel in Vietnam, it is imperative to verify:

• Property Titles: Ensure the seller legally owns the property, the title is free of disputes, and all operating permits are valid and transferable.
• Operating Permits: Verify the tourism business license, mandatory for the commercial operation of a hotel by foreign investors (valid for up to 50 years, renewable).
• Tax Obligations: Examine tax compliance, including corporate taxes, property taxes, and any potential tax arrears. Evaluate the optimal tax structure for foreign investors.
• Preliminary Contracts: Ensure initial agreements (exclusivity, confidentiality) are well-drafted and secure the transaction.

Financial Evaluation

List of points to examine:

• Financial statements for the last 3 to 5 years (revenues, expenses, margins, net profits).
• Debt level: Bank debts, supplier debts, potential disputes.
• Asset inventory: Fixed assets, equipment, inventory.
• Verification of cash flows, real profitability, and identification of hidden financial risks.
• Existence of any potential off-balance sheet liabilities.

Element	Points to Check
Revenues	History, seasonality, sources
Expenses	Structure, optimization, anomalies
Debts	Amounts, due dates, disputes
Assets	Value, condition, ownership

Physical Condition and Maintenance

• Detailed inspection of the building, rooms, common areas, and technical spaces.
• Identification of necessary repairs and estimation of refurbishment costs to meet standards.
• Verification of compliance with local fire safety, hygiene, and accessibility standards.
• Examination of electrical, sanitary, air conditioning systems, and environmental compliance.

Existing Contracts

• Analysis of contracts with:
  • Suppliers (terms, duration, termination clauses)
  • Customers (groups, tour operators, online agencies)
  • Employees (status, seniority, social and legal obligations)
• Identification of long-term commitments, penalty clauses, or potential disputes.

Market Analysis

Study of local competition (category, capacity, positioning, average prices).

Analysis of tourist demand (attendance, seasonality, target clientele).

Evaluation of regional and national growth potential.

Observation of post-COVID hotel sector trends (demand evolution, supply/demand balance).

Factor	Key Questions to Ask
Competition	Who are the main competitors?
Demand	What is the tourist traffic?
Growth	What are the prospects?

Reputation Management

• Online reputation check (TripAdvisor, Google, OTAs, social media).
• Analysis of customer reviews to identify recurring issues (cleanliness, service, safety).
• Assessment of customer loyalty and brand image.
• Existing strategies for e-reputation management.

Cultural and Local Aspects

• Awareness of Vietnamese culture in service and management: expectations regarding hospitality, cuisine, respect for traditions.
• Adaptation of offerings (food & beverage, leisure, communication) to the expectations of local and international clientele.
• Knowledge of local business practices, partner networks, and relations with authorities.

Tourism Statistics and Trends in Vietnam

Recent Tourism Statistics for Vietnam (2025)

• International Tourists (January to June 2025):
  10.66 million (+20.7% compared to the same period in 2024)
• Domestic Tourists (January to June 2025):
  77.5 million
• Annual Forecast for International Tourists in 2025:
  Up to 28 million, a record target (+50% compared to the 17–18 million target in 2024)
• Annual Forecast for Domestic Tourists in 2025:
  Between 120 and 130 million

Year	International Tourists	Domestic Tourists	International Growth (%)
Mid-2024*	~8.84 M	~64 M	–
Mid-2025*	>10.66 M	>77.5 M	+20.7
End of ’25 Target	Up to 28 M	Up to 130 M	+50 (vs. ’24 target)

Geographical Distribution and Major Attractions

Main Tourist Regions:

• Hanoi
• Ho Chi Minh City
• Da Nang
• Quang Ninh (Ha Long Bay)
• Binh Duong
• Hai Phong

Iconic Sites:

• Ha Long Bay – UNESCO World Heritage Site
• Hoi An Ancient Town – UNESCO Heritage Site
• Sapa & Ha Giang – Mountainous landscapes and ethnic culture of the Northwest
• Mai Chau and Pu Luong Rice Terraces
• Ba Be Lake

Tourist Seasons

List of Seasons:

• International High Season: October–April (drier/cooler climate in the north)
• Low Season: May–September; hot/humid period with monsoon but significant national influx during summer school holidays

Current Vietnamese Tourism Trends

Popular Tourism Types:

List of Trends:

• Ecotourism (green tourism, eco-trekking)
• Cultural Tourism (historical heritage, local festivals)
• Coastal Tourism (beaches, coastal resorts like Da Nang or Nha Trang)
• Wellness & Experiential (spas, family or spiritual retreats)

Key Factors Promoting These Trends: relaxation of multi-country e-visas; targeted international campaigns; rapid adaptation to post-pandemic expectations focused on nature/experience.

Economic Impacts and Local Hotel Market

Direct Effects:

• The sector now represents between 6% and 8% of the national GDP
• Estimated creation of over 5.5 million jobs
• Marked recovery post-pandemic with a continuous increase in hotel revenues (+18% Q1: 21,500 billion VND)

Opportunities for Hotel Investors:

• Growing demand in high-end / eco-lodges / family hotel segments.
• Secondary or still underdeveloped regions attracting new interest thanks to infrastructure development.
• Government policies favorable to foreign investments in hospitality.

Major Challenges:

• Risk of temporary saturation in certain main urban/coastal areas.
• Constant need for innovation in the face of increased demands for environmental sustainability.
• Possible fluctuation depending on the regional/global geopolitical context.

The current dynamism of the Vietnamese tourism sector creates a competitive yet promising environment for hotel investment — strategic vigilance remains essential to anticipate seasonal cycles and the rapid evolution of traveler expectations.