APPD Market Report Article


November 29, 2022

Mike Batchelor, CEO - Hotels & Hospitality Group, Asia Pacific


THB 2,744


Arrivals show steady recovery as at YTD September 2022

  • According to Airports of Thailand (AoT), Suvarnabhumi and Don Mueang airports welcomed more than 5 million international passengers and more than 21 million domestic passengers as at YTD September 2022. As a result, the total number of passenger arrivals improved by 222.1% as at YTD September 2022 when compared to the same period in 2021.
  • In 2022, foreign arrivals to Bangkok continued to register positive pick-ups with an increase in passengers every month, as the country eased entry restrictions before a full opening in Q3 2022. 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 counts three additional hotels in Q3 2022

  • During the third quarter of 2022, Bangkok saw the addition of three properties, accounting for 518 keys, with notable openings including the 155-key The Standard Mahanakhon Bangkok, and the 177-key Oakwood Studio Thong lo Station.
  • Due to the large number of postponed projects, a significant hotel supply is slated to start operating by the end of 2022, with 28 additional properties representing 5,998 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 Q3 2022, RevPAR of Bangkok hotels improves significantly

  • As at YTD September 2022, luxury hotels in Bangkok registered a y-o-y improvement in performance, with revenue per available room (RevPAR) increasing by +542.9% y-o-y to THB 2,744. This can primarily be attributed to growth in both occupancy and average daily rate (ADR), with the former rising by 34 percentage points to 45.5%, and the latter by +64.2% to THB 6,033, during the same period.
  • Similarly, midscale and upscale hotels in Bangkok experienced a y-o-y increase in RevPAR to reach THB 779 and THB 1,403 respectively as at YTD September 2022.

Outlook: Lifting of entry restrictions bodes well for industry revival

  • With all entry restrictions in and out of Bangkok being lifted in Q3 2022, hoteliers have seen a positive pickup in international business rebalancing recent demand primarily driven by the local market. Trading performance should continue to improve as a result.
  • With Bangkok entering its peak seasonality period at the end of the year, another uptick in performance should be seen in Q4. Hotel performance should continue to gradually close the gap with pre-COVID-19 levels. However, mainland China accounts for approximately 50% of source market into Bangkok, and with no signs of the Chinese border reopening in 2022, the big uptick is expected in 2023.

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

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