Bangkok welcomes three new luxury hotels in Q3 alone

These properties account for a total of 518 keys.

During the third quarter of 2022, JLL notes that 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,” the analyst adds.

Here’s more from JLL:

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 the 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.