Luxury is Booming in Vietnam

On the shores of the South China Sea, in Cam Ranh—a coastal city in south-central Vietnam—occupancy at the luxury hotel The Anam has surged by 100% this spring of 2026. Since the conflict between Iran and the United States, the influx of Russian guests to this friendly nation has further boosted Europeans’ attraction to this little tropical paradise.

While May and June—traditionally the off-season—typically see occupancy rates of around 40%, the region’s most luxurious hotels are almost all fully booked. “The average length of stay is increasing, and with demand, so are prices,” says the director of The Anam with delight. Guests indulge in French champagne paired with Chinese caviar without skimping on expenses, sometimes just to take photos for their social media. The schedule at the renowned spa is fully booked. The gourmet restaurant has racked up international awards.

Thirty-five kilometers away, Nha Trang is also navigating a fascinating balance between an Asian Riviera and a popular resort that remains deeply local. International hotel groups are setting up shop there one after another, drawn by South Korean, Chinese, and European guests seeking a luxury experience less crowded than that of neighboring Thailand.

In 2026, Vietnam confirmed its spectacular move upmarket in tourism. The country welcomed 6.76 million international visitors in the first quarter, a historic record, up 12.4% year-over-year. Over the first four months of the year, visitor numbers already reached 8.8 million, a 14.6% increase. This momentum directly benefits the premium and luxury segments. According to Vietnamese authorities and several specialized firms, occupancy rates and prices at high-end hotels in Hanoi and Ho Chi Minh City have surpassed pre-pandemic 2019 levels, prompting industry players to accelerate their openings.

The Vietnamese luxury hotel market is estimated at nearly $493 million in 2025 and could reach $945 million by 2034, with an average annual growth rate of 7.5%.

Beyond the numbers, Vietnam is benefiting above all from a shift in Asian luxury trends: an international clientele tired of overcrowded destinations is now seeking more authentic, more cultural, and less standardized experiences. This is precisely where Vietnam shines.

Accor, Marriott, IHG, and Zannier are expanding rapidly there: Fairmont will soon open in Hanoi, Sofitel is setting up in Hai Phong, IHG is accelerating its expansion in Nha Trang, while The Anam and Marriott are transforming Cam Ranh into a new premium wellness destination. The movement goes beyond mere hotel logic: it signals the emergence of a new frontier of desire for international luxury. “Tourism is very profitable,” notes a specialized journalist. “It’s a major resource for Vietnam, which isn’t particularly known for its beaches.”