Vietnam’s hospitality real estate sector is showing signs of increased liquidity and institutional interest as it becomes a more frequent component of regional investment activity.

Following the close of two transactions totalling US$53.7 million, industry forecasts for the tropical country’s annual hotel investment volume have been adjusted to US$200 million for 2026. The two deals, advised by JLL Hotels & Hospitality Group, involve two distinct asset classes and highlight a notable movement in capital flows.

The Parkroyal Saigon, a 186-room urban hotel in Ho Chi Minh City, was acquired by a domestic Vietnamese investor from the Singapore-based UOL Group. The transfer price, according to UOL, is US$15.7 million.

In a separate transaction, the Hotel Perle D’Orient Cat Ba offshore Haiphong City in northern Vietnam was sold by Vietnam’s Truong Binh Minh Joint Stock Company, according to the buyer, to Singapore-headquartered ASB HPL North Asia for US$38 million.

Changes in capital composition

The transactions reflect a changing dynamic between domestic and foreign capital. The acquisition of the Parkroyal Saigon by a local entity suggests that Vietnamese investors now have the capacity to acquire assets previously held by regional multinational firms.

At the same time, the entry of an international consortium into the Cat Ba market indicates that foreign funds are looking beyond primary hubs like Hanoi in the north and Ho Chi Minh City in the south for resort-based opportunities.

While the US$53.7 million total is modest by global standards, it represents a significant portion of Vietnam’s annual market activity. Analysts view the US$200 million threshold predicted for this year as a benchmark for the market’s transition towards a more established investment environment.

Market drivers, outlook

Current momentum is supported by steady economic growth and the continued development of tourism infrastructure. Karan Khanijou, senior vice-president in Asia at JLL Hotels & Hospitality, notes that the Vietnamese market is seeing a balanced mix of buyers, including hospitality specialists and diversifying corporations.

“Our revised forecast of US$200 million for 2026 reflects the growing confidence international and regional investors have in Vietnam’s hotel sector fundamentals and long-term growth trajectory,” Khanijou says. “Well-capitalized Vietnamese investors, including hospitality specialists and diversifying corporations, are driving transactions across urban and resort properties, while foreign investors selectively target premium institutional-grade assets, as highlighted by these recent transactions.”

Trang Le, JLL Vietnam’s country head, adds that the market currently offers attractive entry valuations for quality assets. She noted that while the sector is still maturing, the fundamentals, driven by a growing middle class and recovering tourism demand, provide a consistent trajectory for growth.

The ability for international firms to exit assets to local buyers provides a practical example of market liquidity. This cycle of investment and divestment is a key indicator of the evolving real estate landscape in Southeast Asia.