The hotel serves tourists local seafood at its beach restaurant Lang Chai.
"The main draw for many travelers, though, might be the private, kilometer-long stretch of beach that teems with colorful coral just offshore," it added.
Asian hotels in the list included Japan's Ace Hotel Kyoto, Thailand's Capella Bangkok, Malaysia's One&Only Desaru Coast and India's The Leela Palace.
Phu Yen is the first place on the Vietnamese mainland to meet the sunrise each day. The south-central province was once a lesser-known tourist destination, but catapulted to global fame after it was featured in the movie "Yellow Flowers on the Green Grass" directed by Victor Vu.
The Vietnamese coming-of-age drama won in the 2016 Best Feature Film category of the Young People's Jury Award - part of the annual TIFF Kids International Film Festival in Toronto. It premiered at Cannes Film Festival in 2015.