The Vietnam Association of Realtors (VARS) said that up until recently, the resort realty market was gloomy, with nearly 3,200 products launched into the market in 2023, falling 80% year-on-year, and only 700 apartments absorbed.

However, international investors have bought out Vietnamese properties through mergers and acquisition (M&A) deals, they said.

Foreign investors are in the market for top-notch hotels and resorts in urban hubs like Hanoi and Ho Chi Minh City.

International hotel brands have steadily expanded their presence in Vietnam, increasing from under 50 branded hotels in 2013 to nearly 200 today.

Last year, Marriott International, Inc. signed agreements with Vinpearl, Vietnam’s largest hospitality and leisure chain, for an additional seven hotels and resorts, comprising more than 2,500 rooms.

Three of them were conversions, namely Nha Trang Marriot Resort & Spa, Renaissance Hoi An Resort & Spa, and Da Nang Marriott Resort & Spa.Meanwhile, four new builds comprising more than 1,200 rooms are expected to become operational by 2028.

According to Rajeev Menon, President of Marriott International’s Asia Pacific Excluding China, the move aims to strengthen the corporation’s presence and better meet demand in the country.

It currently operates 16 hotels and resorts in the Southeast Asian nation, with a strong development pipeline, he said, adding debuts of several exciting brands are expected in the country in the coming time, including the Ritz-Carlton, Westin Hotels & Resorts, Element by Westin, and Courtyard by Marriott.

Besides, Singaporean-based Lodgis Hospitality Holdings joined hands with Hanwha Group from the Republic of Korea to invest in hotel projects in several Asian countries, including Vietnam.

Lodgis hopes to operate 10,000 rooms by 2025 as compared to the current 1,950 under the Maida Resort, Ixora and Hiive brands in Vietnam and Cambodia.

Experts said foreign firms have taken aggressive positions in Vietnam by taking advantage of the attracting pricing of hospitality properties to bolster investment, waiting for the market recovery and development.