Hilton doubles down its footprint in the Vietnamese market

With 25 years after the first Hilton management hotel in Hanoi, how do you evaluate the efficiency of foreign investment in contributing to the development of Vietnam’s economy and tourism industry? Alexandra Murray, vice president and regional head of South East Asia

We have seen tremendous development in Vietnam over the past 25 years, underscored by strong GDP growth and improved confidence. The influx of foreign direct investment has also bolstered the country’s tourism industry through multiple hospitality projects. Investors are keen on penetrating the Vietnamese market to seize the opportunities.

This trend has contributed to more tourist arrivals for Vietnam, which in turn generates higher revenue for the tourism industry. According to statistics from the Vietnam Real Estate Association, the country is home to 239 tourism real estate projects with a total value of about $30 billion. This massive figure sends a positive signal to the investor community.

In addition, we are upbeat about the development of high-quality infrastructure after 25 years of operation here. This is a significant factor in identifying the right locations for new hotel openings. Foreign capital has also greatly supported the development of high-quality infrastructure in the tourism sector, which has spillover effects beyond hotels and resorts. Improved transportation networks and connectivity also facilitate the tourism growth in Vietnam.

Furthermore, business tourism is on the rise as more multinational companies relocate to Vietnam to set up their manufacturing hubs, headquarters, or local branches. That's very critical for hotels to tap into a diversified demand.

What opportunities do Hilton-managed brands have to expand their footprint to meet the needs of the Vietnamese market?

In today's landscape, there is still an opportunity to really place one of our 24 award-winning brands in Vietnam. Our 24 brands are divided into three categories, including focused service, full service, as well as luxury and lifestyle. As far as luxury is concerned, we have Waldorf Astoria Hanoi in the pipeline. We really look forward to adding an ultra-luxury component to the capital city.

Earlier this year, we also introduced La Festa Phu Quoc, Curio Collection by Hilton, a premium collection brand in Vietnam. It again shows that we are very mindful of what travellers are actually seeking. It can be travelling for the purpose of leisure or business, and our brands can cater to different travel demands.

La Festa Phu Quoc, Curio Collection by Hilton

Hilton has a pipeline of 14 new hotels today in Vietnam. They are all in locations where we research and work with our partners to make sure that we identify the right brand in the right location that travellers are planning to visit. Over the next few years, we plan to double the number of our brands from three to seven in Vietnam.

Compared to five years ago, what are the emerging trends of foreign investment in Vietnam's tourism industry?

There's growing investor interest in the hospitality asset class. In 2024, hotel investments in Asia-Pacific are expected to reach about $10.4 billion, which is a solid number. Three in four of the investors are interested in hotel acquisitions. There are numerous transactions that are actually either already executed or in flight.

About 65 per cent of Southeast Asia's population is expected to reach the middle class by 2030. There's more disposable income that these investors can expect. That's why we, together with our partners, look at expanding our full service and focused service footprint to cater to this growing segment.

For instance, we are expanding Hilton Garden Inn, our upscale-focused service brand, in Vietnam. From opening Hilton Garden Inn in Danang last year, we are also set to welcome Hilton Garden Inn Mui Ne Beach and Hilton Garden Inn Vinh Long. Beyond the Hilton Garden Inn brand, we also signed Hilton Hanoi West, DoubleTree by Hilton Long Xuyen, DoubleTree by Hilton Sa Dec, and Tapestry Collection by Hilton Hoi An, which will give travellers a greater choice of options.

The other aspect would be the demand for luxury travel. There's certainly a rise in disposable income, which leads to a rise in luxury and lifestyle demand. Some travel patterns in that segment are evolving. Whether it's solo travel or family travel in the luxury space, we are strengthening our luxury brand portfolio across the region.

Waldorf Astoria Hanoi How do Hilton-managed brands compete with other international hotel management brands in Vietnam?

Vietnam is a really attractive and highly sought-after destination in Southeast Asia. As the demand for travel picks up, there is more competition and players entering the market. We are confident that we will be able to continue capturing these growth opportunities by adding new hotels to our network with the right partners in the right locations.

Hilton has been in existence for more than 100 years. That's not what many of our competitors can say. We have successfully existed for over 100 years, and the strengths of our commercial engine really demonstrate that. Innovation on the technology front is also a key focus for us. For example, our guests can use their mobile phones in most of our hotels to check in, select their room, and even use their phones as key cards to enter the rooms. Innovation is really front and centre for us as a point of differentiation against other hospitality players.

Another unique selling point lies in our team members. We make sure that we select team members with the right mindset to really deliver on our brand promise. In hotels, team members play a crucial role in bringing the brand to life and creating that brand love. That's the big differentiator why travellers choose us. I strongly believe that how our team members care for our guests as sets us apart from our competition.

Last month, Hilton signed 11 new hotels in Vietnam, Thailand, and Indonesia and launched the Tapestry Collection in Southeast Asia. Can you share more of your development strategy in the coming time?

We want to make sure that we have the right brand in the right location in Southeast Asia. Also, working with the right partner is absolutely critical for sustainable, long-term, successful partnerships.

BRG is an excellent example for Hilton in Vietnam. We have had that relationship since 1999, opening our first hotel – the Hilton Hanoi Opera – in the beautiful country of Vietnam. We also have multiple projects with BRG, including the iconic Waldorf Astoria Hanoi, in the pipeline.

We make sure that our partnerships are long lasting and successful by delivering on the brand promise and meeting our owners’ expectations to bring premium returns. This is why our partners continue to work with us, and new partners want to work with us. We are very optimistic and confident that there is lots to come in terms of our growth in Vietnam and across Southeast Asia.

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