Foreign visitation above pre-pandemic with increased Chinese tourists

• Bangkok continues to welcome an increasing number of foreign visitors. As of May 2024, international visitor arrivals to Bangkok saw a 6.6% growth on the same period in 2023, registering 11.5 million arrivals, above the same period in 2019.
• In H2 2024, Mainland China regained its position as the largest source market to Thailand (20% of total arrivals), thanks to improved airlift, the implementation of mutual visa facilitation and Chinese New Year in February.

Bangkok hotel rooms supply expected to grow at a 3.3% CAGR by 2027

• In H1 2024, 10 hotels opened, adding 1,959 new rooms to the existing hotel supply. Between 2024 and 2027, Bangkok will count a total of more than 19,200 new hotel rooms, representing a CAGR of 3.3%.
• The existing hotel room supply (as of YTD May 2024) in Bangkok is mainly represented by two segments – midscale and upscale. Midscale hotels account for 38.1% of the total room supply, with Sukhumvit being the most popular hotel development area.

Bangkok hotels exceed pre-pandemic levels in trading performance

• At a city-level, Bangkok hotels registered a notable increase in RevPAR y-o-y in H1 2024 and above 2019, boosted by a notable rise in occupancy and a continued increase in ADR. Entry-level segments recorded the strongest growth y-o-y.
• In the first six months of 2024, Bangkok recorded a total of more than THB 6.5 billion of hotel transactions, led by major deals such as Karnmanee Palace Hotel, Hotel Mermaid Bangkok and Ananda’s Ascott portfolio.

Outlook: Bangkok hotel market to remain resilient but Q3 2024 could be challenging

• The series of measures to boost inbound tourism (visa facilitation schemes), along with improved airlift, should enable Thailand to record continued rise in international visitation. In 2024, Thailand anticipates 40 million of foreign visitors.
• As a result, hotel trading performance should further improve despite pressure of large incoming supply, with the upscale hotel segment expected to overtake the midscale segment as the biggest supply segment by 2027.