APPD Market Report Article

Bangkok

September 4, 2023

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

167.4%

THB 5,797

RevPAR
Rising

Arrivals show steady month to month recovery as of YTD June 2023

  • According to the Ministry of Tourism and Sports (MOTS), Bangkok welcomed approximately 12,970,340 international passengers and 15,087,010 domestic passengers as of YTD June 2023, registering y-o-y increases of 549.8% and 7.3% respectively. As a result, the total number of passenger arrivals improved by 74.7% to 28,057,350 passengers as of YTD June 2023, when compared to the same period in 2022.
  • With improved air connectivity, Mainland China climbed to the first spot as the main source market to Bangkok as at YTD June 2023 (excluding Malaysia in which numbers are boosted by daily cross border travels in the south of Thailand), followed by Russia, South Korea, India and Vietnam.

Bangkok welcomes four additional hotels in 2Q23

  • Bangkok saw the opening of four new properties in 2Q23: the 179-key Dusit D2 Samyan, the 106-key ASAI Bangkok Sathorn, the 494-key Eastin Grand Hotel Phayathai, and the 91-key Ramada by Wyndham Bangkok Ten Ekkamai Residences.
  • As a large number of projects were postponed due to COVID-19, 3,273 keys are expected to be added to Bangkok’s hotel supply by the end of 2023, representing the largest annual increase in the past decade. Between July 2023 and December 2025, 13,827 keys are expected to open.

RevPAR of luxury hotels improves by 167.4% y-o-y

  • Luxury hotels in Bangkok registered a y-o-y improvement in performance, with revenue per available room (RevPAR) increasing by 167.4% to THB 5,797 as of YTD June 2023. This was attributable to growth in both occupancy and average daily rate (ADR), which rose by 27 percentage points (ppts) and 56.3% respectively during the same period.
  • Similarly, midscale and upscale hotels in Bangkok experienced a y-o-y increase in RevPAR of 150.3% to THB 1,441, and 182.6% to THB 2,776 respectively as of YTD June 2023. Like the luxury segment, the improvement in both segments is attributed to growth in both occupancy and ADR.

Outlook: Occupancy gradually closing gap with pre-pandemic levels

  • Pre-pandemic, visitors from Mainland China formed the top source market for Bangkok, making up roughly 30% of total international visitors, followed by Japan, India, and South Korea. After the lifting of all entry restrictions in January 2023, China has returned as the top source market for Bangkok as of YTD June 2023, however arrival numbers are still less than one third of 2019 numbers.
  • The recovery outlook for Bangkok hotels is bullish, and it is anticipated that the gap with pre-COVID-19 occupancy levels will gradually close over the year. We expect 4Q23 to be the first real high season in Bangkok after three years of the pandemic.

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

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