Vietnam’s tourism boom fuels IHG’s ambitions

IHG executives outlined a strategy that taps into Vietnam’s bustling tourism industry and aims to redefine its luxury, premium, and mainstream hospitality offerings.

Rajit Sukumaran, senior vice president cum managing director for East Asia & Pacific at IHG Hotels & Resorts, highlighted the influx of international tourists as a testament to Vietnam’s escalating allure as a destination. "Vietnam’s tourism recovery has been remarkable. The nation’s rich cultural appeal, combined with rapid economic growth, creates a promising landscape for expansion in the hospitality sector," said Sukumaran.

In the first 10 months of the year, Vietnam welcomed nearly 14 million international visitors, marking an impressive 41 per cent increase from the previous year. Projections indicate the country will reach 18 million arrivals by year’s end, edging closer to pre-pandemic levels. Looking forward, Sukumaran estimated that Vietnam could attract as many as 20 to 25 million international tourists in 2025, a target bolstered by new air routes and expanding global connections. Notable recent milestones include Vietjet’s 56 weekly flights to India, Vietnam Airlines’ new route to Milan, and Malaysian carriers adding a Kuala Lumpur-Danang connection.

"Domestic flight growth has also been instrumental in propelling Vietnam’s tourism and hospitality industries," Sukumaran noted, underscoring the integral role of air connectivity in stimulating the sector.

The Vignette Collection. Photo: IGH

To capitalise on this momentum, IHG announced the debut of two new luxury brands. In Hoi An, the Vignette Collection will feature a curated selection of bespoke hotels, delivering an individualised guest experience with a strong sense of place. In Ho Chi Minh City, the Hotel Indigo brand will provide travellers with a vibrant, personalised experience deeply rooted in local culture and design. "Both brands reflect the growing appetite among tourists for unique, luxury stays that go beyond traditional hospitality," said Sukumaran.

IHG’s expansion strategy also includes robust growth within the premium and mainstream hotel segments. Vivek Bhalla, managing director for Southeast Asia and South Korea, revealed that IHG plans to open five new Crowne Plaza properties across Vietnam, catering to the growing business and leisure market segment with flexible spaces ideal for both work and relaxation.

Voco Quang Binh Resort is set to open soon. Photo: IGH

The company’s Voco hotels brand will also make its Vietnam debut, with Voco Quang Binh Resort set to open soon, further expanding IHG’s premium offerings. Additionally, IHG’s iconic Holiday Inn brand, which already operates in Ho Chi Minh City and Ho Tram, is poised for significant expansion, with nine more properties in the pipeline.

Speaking about IHG’s intention to introduce new brands to meet the growing demand for affordable, quality accommodations, Bhalla said, "Vietnam’s midscale market presents enormous opportunities. We aim to bring diverse options that cater to every type of traveller, from luxury seekers to budget-conscious tourists."

Additionally, the group intends to expand its current footprint from 16 properties (approximately 4,800 rooms) to over 40 hotels (around 12,000 rooms) over the next few years. With luxury and lifestyle brands comprising 30 per cent of its upcoming projects, IHG aims to meet evolving traveller preferences and cement its leadership in Vietnam’s hospitality landscape.

"Vietnam is a cornerstone market for IHG," Bhalla emphasised. "Our commitment is clear. Through strategic brand placements, strong local partnerships, and a profound understanding of the market’s unique demands, we’re dedicated to supporting Vietnam’s vision of becoming one of the world’s premier travel destinations."

As Vietnam’s tourism industry continues to grow, IHG’s expansion plans reflect both optimism and confidence in the country’s potential as a global tourism hub. With a strong foundation in place, IHG is ready to meet rising demand while setting new standards for luxury and quality in the Vietnamese market.