Thailand tourism softens, Bangkok remains resilient

• Thailand welcomed over 9.3 million international visitors in Q1 2026, representing a 2.4% year-on-year decline. While arrivals from India and China rebounded strongly, this was insufficient to offset the drop in visitors, especially from the Middle East, driven by air connectivity disruptions linked to the ongoing US–Iran conflict.
• In contrast, Bangkok saw an increase in tourist arrivals compared to Q1 2025, welcoming a total of 14.3 million visitors (+2.0% year-on-year), including domestic travellers. The city accounted for 74% of Thailand’s international arrivals in Q1 2026, a marginal increase of 0.5 percentage points from the same period last year.

Two new hotels opening in Bangkok

• Two properties completed in Bangkok in the first three months: the 86-key serviced apartment Shama Sukhumvit 101 Bangkok located in Upper Sukhumvit, and the upscale 405-key Grand Nikko Bangkok Sathorn.
• Bangkok hotel market continues to be dominated by the upscale segment (37%) and the midscale segment (36%). An additional 5,000 new rooms are anticipated to be added by the end of the year.

Stable hotel performance amid selective investment activity

• Bangkok’s RevPAR as of YTD March 2026 remained stable from Q1 last year thanks to a rising occupancy which was able to offset a declining average room rate, especially in March as it signals the usual end of the peak season.
• One transaction closed in Q1 2026, which is the long-term leasehold right for Aura Best Beach Samui. The new owners plan to undertake a comprehensive renovation to reposition the property as an upscale boutique hotel.

Outlook: Sustained positive investor sentiment in Thailand’s tourism industry

• Thailand’s hotel investment market demonstrates resilience amid global uncertainty, with investor sentiment remaining positive due to the country’s established tourism position.
• In 2026, Thailand is anticipated to record a similar level of volume than the 10-year average, at about USD450 million in 2026.