APPD Market Report Article

Bangkok

May 31, 2022

177.7%

THB 1,463

RevPAR
Rising

Arrivals show slow but steady recovery as at YTD March 2022

  • According to Airports of Thailand (AoT), Suvarnabhumi and Don Mueang airports welcomed approximately 237,000 international passengers and 1.6 million domestic passengers as at YTD February 2022, registering y-o-y increases of 336.4% and 92.2%, respectively. As a result, the total number of passenger arrivals improved by 107.5% as YTD February 2022 when compared to the same period in 2021.
  • Following the reopening of the country in November together with the beginning of the high season, foreign arrivals to Bangkok continued to register positive pick-ups in January and February 2022 with 108,000 and 129,000 visitors, respectively. Nevertheless, the gap with pre-COVID-19 arrival levels remained large with 2019 recording an average of 3.3 million arrivals on a monthly basis.

Bangkok welcomes five additional hotels in 1Q22

  • During the first quarter of 2022, Bangkok saw the addition of five properties, accounting for nearly 500 keys, with notable openings including the 94-key Quartier Hotel Bangkok by Compass Hospitality, the 136-key Shama Yen-Akat Bangkok and the 90-key Quarter On Nut by UHG.
  • Due to the large number of projects postponed from initial opening in 2020 and 2021, a significant hotel supply is slated to start operating during the remaining of 2022, with nearly 30 additional properties representing over 7,000 keys. While a considerable number of hotels will enter the market in 2022, it is also expected that multiple developments may either be delayed or abandoned.

As at 1Q22, RevPAR of luxury hotels improves by 177.7% y-o-y

  • As at YTD March 2022, luxury hotels in Bangkok registered a y-o-y improvement in performance, with revenue per available room (RevPAR) increasing by 177.7% y-o-y to THB 1,463. This can primarily be attributed to growths in both occupancy and average daily rate (ADR) rising by 15.9 percentage points to 30.1% and 30.9% to THB 4,864, respectively, during the same period.
  • Similarly, midscale and upscale hotels in Bangkok experienced a y-o-y increase in RevPAR of 73.4% to THB 490 and 77.5% to THB 779, respectively, as at YTD March 2022.

Outlook: Ongoing easing of restrictions to bode well for industry revival

  • Hoteliers have seen positive pick-ups in international business rebalancing recent demand primarily driven by the local market. As as result, both occupancy and ADR showed signs of improvement during the first quarter of 2022.
  • As at end of April, the Government considers removing requirements imposed by Test & Go program, including the pre- and upon arrival tests, which would allow vaccinated travellers to freely enter the country. With the recovery taking place, hotel performance will continue to gradually close the gap with pre-COVID-19 levels throughout 2022.

Note: Bangkok Hotels refers to Bangkok's luxury hotel market.

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