APPD Market Report Article


May 26, 2024

Nihat Ercan, CEO - Hotels & Hospitality Group, Asia Pacific


THB 7,110


Tourist arrivals rise strongly with higher foreign visitation

  • In the first two months of 2024, Bangkok welcomed a total of approximately 10.1 million tourists, of which 51% were international visitors, according to the Ministry of Tourism and Sports (MOTS). Compared to the same period last year, tourism in the city has increased by 6%, boosted by a higher volume of foreign visitation as air traffic improved.
  • The total number of international tourists as of YTD February 2024 represented 75% of the number for the full first quarter of 2019, underscoring Bangkok’s status as a major tourist hotspot.

More than 1,100 new rooms in Q1 2024

  • Five new hotels opened in the first quarter, adding a total of 1,144 rooms to the existing supply in Bangkok. The midscale segment represented the majority of the new openings, with three hotels representing almost 87% of the new rooms. The most notable midscale project was the Moxy Hotel Bangkok Ratchaprasong, which, alone, added more than 500 rooms to the market.
  • As a result of multiple delayed projects due to the pandemic, Bangkok is expected to count 4,950 new rooms by the end of 2024. Notable projects include the 512-key Grande Centre Point Lumphini, the 456-key Eastin Hotel Harbour Bangkok and the 332-key Queensland Hotel Bangkok.

Performance continues to improve with rising occupancy and rates

  • In Q1, luxury hotels in Bangkok recorded better performance compared to last year as average daily rates (ADRs) continued to rise in tandem with increased occupancy. RevPAR in Q1 reached THB 7,110. The end of the high season in January and Chinese New Year in February have particularly helped boost trading performance for the overall quarter, with sustained high levels of ADR.
  • Upscale and midscale to economy hotels experienced stronger increases in revenue per available room (RevPAR) by 18.1% and 25.3%, respectively, with the entry-level segment registering the strongest y-o-y growth in ADR.

Outlook: Continued improvement in performance with rising occupancy

  • The lifting of visa requirements for countries like China, India and Taiwan is anticipated to stimulate inbound tourism more clearly and increase trading performance as a result. The number of Chinese tourists is expected to progressively rise throughout 2024.
  • In 2024, luxury hotels in Bangkok are expected to experience a further recovery in their trading performance. ADRs are projected to remain robust, with RevPAR growth primarily driven by high occupancy levels.

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

Talk to us 
about real estate markets.