How to Rent a Hotel in Vietnam: The Complete Guide to Launching Your Business
Renting a hotel in Vietnam is more than a simple property lease; you are taking over a complete business operation. This process involves significant legal, financial, and operational hurdles that are different from any other type of rental. This guide provides a direct, step-by-step framework to help you navigate these complexities, avoid costly mistakes, and successfully setup a hotel business in Vietnam. Here is how to rent a hotel in Vietnam and what are the common pitfalls to avoid.
Key Takeaways on how to rent a hotel in Vietnam:
- Legal First: You must have a registered company to legally sign a hotel lease in Vietnam and apply for the necessary operational licenses.
- The PCCC is Non-Negotiable: The property’s Fire Safety Certificate (PCCC) is the most common deal-breaker. Verify it exists or is obtainable before signing anything.
- Budget Beyond Rent: Your true initial investment includes a large security deposit (3-6 months), upfront rental fees plus significant costs for renovation, branding, and pre-opening operations.
- The Lease should be notarized: Your lease agreement must be detailed, bilingual, notarized and clearly define terms for asset handover, major repairs, and early termination penalties for both parties.
- Use a Specialized Team: The process is too complex to do alone. You need a lawyer for legal verification and a specialized hospitality real estate agency to find properties and navigate negotiations.
Can Foreigners legally rent and run a hotel in Vietnam?
Yes, foreigners can run a hotel in Vietnam. You must do it through a legally registered Vietnamese company. You cannot personally sign a lease to operate a hotel as a foreign individual without a legal entity and the relevant licenses. This is the foundational legal requirement for any foreigner looking to rent a hotel in Vietnam.
What licenses do I need to operate a hotel in Vietnam?
The primary licenses you need to operate a hotel in Vietnam are a valid business registration (IRC/ERC), a Fire Safety Certificate (PCCC) for the property, and a Certificate of Social Order & Security.
The two most critical property-specific licenses
A failure to secure either one of these will make it impossible to legally rent a hotel for business in Vietnam.
- The Fire Safety Certificate (PCCC – Phòng cháy chữa cháy)
This certificate, issued by the fire police department, is the number one deal-breaker. The property must pass a rigorous inspection of its emergency exits, alarm systems, and fire suppression equipment. Many older buildings simply cannot pass without massive renovations. You must see the current, valid certificate or have a legal expert confirm it is obtainable. - The Certificate of Social Order & Security
This certificate is issued by the local police department and is mandatory for any lodging business. It confirms your business meets security requirements, including having proper procedures for registering guests with local immigration authorities.
How do I know if a hotel building is a safe investment?
To know if a hotel is a safe investment, you must verify its legal status by checking the ownership documents and conduct a thorough physical inspection of its core systems.
Confirming the building is a legal structure
As a foreign-invested company, you are legally permitted to rent a building, not just land. You must review the landlord’s ownership document (the “Pink Book”) to ensure it explicitly lists a permanent “asset attached to the land.” This confirms the building has a legal construction license and is a prerequisite for getting the Fire Safety (PCCC) certificate.
The physical inspection checklist
When you rent a hotel in Vietnam, you are inheriting its operational systems. You must check:
- The Elevator: Is it a known brand? When was it last serviced?
- The Generator: Does it have a backup generator? Is it powerful enough to run the entire building?
- Water Systems: Check water pressure on the top floors and the size of the storage tanks.
- The Electrical System: Can the transformer handle a full load?
- Room Condition: Spot check multiple rooms for mold, water damage, and the condition of furniture.
How do I know if the hotel is a good business opportunity?
To know if a hotel is a good business opportunity, you should perform financial due diligence by requesting and analyzing the property’s historical operational data. A successful project requires a viable business model.
Ask the Landlord for Key Operational Data:
- Historical Occupancy Rates: Ask for reports from the previous 1-2 years.
- Average Daily Rate (ADR): What was the average price per room?
- Past Utility Bills: This helps you create an accurate operational budget.
- Staffing Costs: What is the current monthly payroll?
A transparent landlord should provide this data. It is critical for you to project potential revenue and determine if the rent is sustainable.
Is Da Nang or Hoi An better for a hotel business?
Whether Da Nang or Hoi An is better for a hotel business depends on your target market and operational style.
| Factor | ダナン | ホイアン |
| Target Audience | Diverse: Families, MICE (business events), luxury travelers, casino guests. | Primarily couples, cultural tourists, boutique/luxury travelers. |
| Seasonality | More stable year-round demand. | Very high peak seasons, quieter low seasons. |
| プロパティタイプ | Larger hotels, high-rise buildings. | Smaller boutique hotels, historic buildings. |
| Operational Style | Geared towards larger scale operations. | Focused on personalized service and ambiance. |
The Verdict: If you want to start a hotel business in Da Nang, you target a larger, more diverse market. If you choose Hoi An, you enter a world-famous boutique destination where unique charm is key.
What Should I Look For in the Hotel Lease Agreement?
In a hotel lease agreement, you should look for specific clauses covering the detailed asset handover, responsibilities for major repairs (like elevators), your right to re-brand, and clear termination terms for both parties.
The contract must include a detailed appendix listing every single asset you are taking over. It must clearly define who is responsible for fixing major systems. A strong contract will also include a significant penalty for the landlord if they break the lease without cause, protecting your investment.
What happens to the existing staff if you are taking over the hotel?
What happens to existing hotel staff depends on the lease agreement, which must clearly state if the landlord terminates their contracts or if you, the new tenant, agree to take them over.
- Landlord Terminates Contracts: The landlord is responsible for paying all severance. You are then free to hire a new team or re-hire old staff on new contracts.
- Tenant Takes Over Staff: You inherit the existing staff and their employment contracts. This requires careful review of their current salaries and terms with your lawyer.
This point must be clarified in the lease to avoid future legal liability.
What are the real costs to rent a hotel in Vietnam?
The real costs to rent a hotel in Vietnam include the upfront rental fees (usually 6 to 12 months upfront payment), a large security deposit (3-6 months), significant funds for renovation and branding, and several months of pre-opening operational costs. The rent is just the beginning; a realistic budget covering the cashflow is essential for success.
What does the timeline look like to rent and open a hotel?
A realistic timeline to rent and open a hotel in Vietnam is around 6 months from the start of your property search to your opening day. This process includes property search (Month 1), legal and financial due diligence (Month 2), business registration (Months 3-4), renovation (Month 5), and final licensing and staffing (Month 6).
How do I find a hotel for lease in Da Nang?
The most effective way to find a hotel for lease in Da Nang is to work with a professional real estate agency that specializes in hospitality properties, as most high-value hotels are not listed publicly. Owners are often very discreet to avoid instability with staff and customers. An experienced agency like MVP Vietnam has access to these off-market opportunities and can guide you through the complex due diligence and negotiation process required to rent a hotel for business in Vietnam.
Checklist for how to rent a hotel in Vietnam
| Phase | Step / Action Item | Status (Done ✔️) |
| 1. Initial Planning & Legal Setup | ||
| Define your business model and target market (e.g., Da Nang vs. Hoi An). | ||
| Create a detailed business plan and preliminary budget. | ||
| Engage a reputable lawyer with experience in foreign business setup. | ||
| Engage a specialized commercial/hospitality real estate agency. | ||
| 2. Property Due Diligence | ||
| Legal Verification: | ||
| -> Confirm the building is a legal asset on the “Pink Book” (Sổ Hồng). | ||
| -> Verify the landlord’s identity matches the ownership documents. | ||
| -> Obtain and verify the current Fire Safety Certificate (PCCC). | ||
| -> Obtain and verify the Certificate of Social Order & Security. | ||
| -> Have your lawyer give final approval on the property’s legal viability. | ||
| Physical Inspection: | ||
| -> Inspect the condition of the elevator and review its maintenance history. | ||
| -> Test the backup generator under a full load. | ||
| -> Check water pressure and storage systems on multiple floors. | ||
| -> Assess the capacity and condition of the main electrical transformer. | ||
| -> Spot-check multiple rooms for mold, damage, and furniture condition. | ||
| 3. Financial Due Diligence | ||
| Request and analyze historical Occupancy Rates from the landlord. | ||
| Request and analyze the historical Average Daily Rate (ADR). | ||
| Request and review past utility bills to forecast operational costs. | ||
| Request details on current staffing costs (if applicable). | ||
| Finalize your revenue projections and confirm the rent is sustainable. | ||
| 4. Negotiation & Contract | ||
| Negotiate key terms: rent, deposit, rent-free fit-out period, renewal options. | ||
| Clarify responsibilities for major repairs (roof, elevator, generator). | ||
| Clarify what happens to existing staff (takeover vs. landlord termination). | ||
| Ensure the contract includes strong termination penalty clauses for the landlord. | ||
| Review the detailed asset handover appendix (list of all furniture/equipment). | ||
| Sign the final, notarized, bilingual Lease Agreement. | ||
| Pay the security deposit and get a signed receipt. | ||
| 5. Post-Lease & Pre-Opening | ||
| Provide the notarized lease to your lawyer to begin business registration (IRC/ERC). | ||
| Plan and execute any necessary renovations and branding changes. | ||
| Set up operational systems (booking engine, payment systems, etc.). | ||
| Apply for all final business sub-licenses. | ||
| Hire and train your new team. | ||
| Plan and execute your marketing and pre-opening sales strategy. |
1. Can foreigners legally run a hotel in Vietnam?
Yes, foreigners can run a hotel in Vietnam. You must do it through a legally registered Vietnamese company. You cannot personally sign a lease to operate a hotel as a foreign individual without a legal entity and the relevant licenses.
2. How much does it cost to rent a hotel in Vietnam?
The cost to rent a hotel in Vietnam varies dramatically by location, size, and condition. Here is a general breakdown of what you can expect for monthly rent:
In Hoi An:
Small Guesthouse (10-15 rooms): Starts at approximately $5,000 per month.
Medium Boutique Hotel (~30 rooms): Starts at approximately $10,000 per month.
In Da Nang:
Small Hotel near the beach (10-20 rooms): Starts at approximately $10,000 per month.
Medium hotel (central or near beach) (40-60 rooms): Starts at around $20,000 per month
Large Beachfront Hotel (100+ keys): Can range from $100,000 to $200,000+ per month.
3. Is it better to buy or rent a hotel in Vietnam?
Whether it is better to buy or rent a hotel in Vietnam depends on your capital and long-term goals. Renting requires less upfront capital and offers more flexibility to test the market, while buying a hotel is a much larger, more complex investment with stricter foreign ownership laws regarding land use rights. For most new entrepreneurs, leasing is a more accessible entry point.
4. What type of hotel is best to rent for a new operator?
For a new operator, the best type of hotel to rent is often a smaller property with 20-40 rooms. This size is more manageable operationally and financially, allowing a new entrepreneur to learn the local market, build a brand, and establish procedures without being overwhelmed by the complexities and high costs of a large, 100+ key hotel.
5. Can I find a hotel for lease directly from an owner?
Yes, you can sometimes find a hotel for lease directly from an owner, but it comes with significant risks. These risks include a lack of support for critical due diligence (like verifying licenses), the potential for an unfair or poorly written contract, and a higher chance of scams. A professional agency acts as a crucial intermediary to protect your interests, as well as access to a range of hotels that are not on the market or public advertised.
6. Does the hotel come with existing booking channel accounts (e.g., Booking.com, Agoda)?
This must be specified in the lease agreement, but in most cases, you will need to set up your own new accounts for all booking channels. This is critical because it ensures that all guest payments are directed to your company’s bank account and that you have full control over the property’s online reputation and reviews from day one.
7. What happens to the existing staff when I rent a hotel in Vietnam?
When you rent a hotel in Vietnam, the lease must specify if the landlord is responsible for terminating existing staff contracts or if you, the new tenant, are taking over the staff and their contracts. This must be clarified to avoid future legal and financial liability.
8. What is the most common reason a hotel lease deal fails?
The most common reason a deal fails during due diligence is the property’s inability to meet the strict requirements for the Fire Safety Certificate (PCCC). This is why verifying this license is the most critical technical check you will perform. However, most deals are failing due to different expectations between owner and renter, often being difficult to reach an agreement.
9. How can I find a hotel for lease in Da Nang?
The best way to find a hotel for lease in Da Nang is to work with a specialized real estate agency like MVPベトナム. They have access to off-market opportunities not listed publicly and possess the expertise to guide you through the complex legal, financial, and operational due diligence required to rent a hotel for business in Vietnam.
