Minor Hotels, the Thailand-headquartered hospitality operator that manages over 520 properties across Asia, is abandoning its beach-resort-only strategy in Vietnam. The company now targets the country's booming domestic travel market and corporate sector, forcing expansion into Hanoi and Ho Chi Minh City, Vietnam's two largest metropolitan centers.
For nearly two decades, Minor Hotels built its Vietnamese footprint on international leisure travelers flocking to coastal destinations like Da Nang and Phu Quoc. Beach properties under brands including Kiman, Angsana, and Avani dominated the company's Vietnam portfolio. But domestic travel patterns shifted dramatically after Vietnam reopened its borders in 2022. Middle-class Vietnamese travelers now drive significant occupancy across all property types, especially city-center hotels serving business, conventions, and meetings. Corporate travel spending in Vietnam's major urban markets has accelerated beyond pre-pandemic levels.
"We need a network approach, not just resorts," the company's strategy signals. Hanoi and Ho Chi Minh City represent two distinct markets. Hanoi attracts business travelers from North Vietnam and China while serving as a hub for government and tech industry meetings. Ho Chi Minh City anchors the wealthier southern region and hosts major conferences, trade shows, and corporate headquarters for regional operations. Both cities lack sufficient quality hotel inventory from established international operators.
Minor Hotels plans to add properties in both cities across multiple brand tiers. The company's portfolio spans economy to luxury segments. Kiman targets budget-conscious business travelers and independent tourists. Angsana appeals to mid-market guests. Avani positions itself in the upscale segment. This tiered approach allows Minor Hotels to capture different spending profiles within the same urban market.
Vietnam's hotel sector faces inventory challenges that Minor Hotels aims to exploit. International chains including Accor, IHG, and Marriott expanded slowly in Vietnam's secondary cities compared to Thailand or Indonesia. Major Hanoi hotels remain concentrated among state-owned properties and smaller Vietnamese operators. Ho Chi Minh City has slightly more international brand presence but still underserves the midscale and upper-midscale segments.
Domestic travel volume in Vietnam grew approximately 30 percent annually between 2022 and 2024 according to hospitality data. Business travel recovery outpaced leisure. Vietnam's corporate sector increasingly hosts regional conferences and product launches that previously rotated through Bangkok or Singapore. This shift reflects Vietnam's emergence as a manufacturing and tech hub attracting multinational operations.
Minor Hotels' shift mirrors broader industry trends. Thailand's Central Group, which operates numerous hotel chains, similarly expanded into urban markets across Southeast Asia after building coastal properties. The strategy recognizes that leisure beach tourism, while profitable, creates seasonal occupancy swings that urban business travel smooths.
The expansion requires different operational expertise. Beach resorts emphasize all-inclusive experiences and extended stays. City hotels prioritize location, meeting spaces, and efficient check-in processes. Minor Hotels must recruit sales teams focused on corporate clients and convention organizers rather than tour operators.
Vietnam's hotel market remains fragmented compared to Thailand or Indonesia. This fragmentation creates opportunity for networks willing to invest in city infrastructure and local partnerships. Minor Hotels enters a market where execution speed and brand consistency matter more than destination prestige.