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Bangkok’s to witness its largest annual hotel supply increase in 10 years
Over 8,000 keys are expected to be added this year.
According to a JLL report, Bangkok saw the opening of three new properties in 1Q23: the 80-key CASA 17 Hotel, the 65-key Jono Hotel Asok, and the 250-key Quarter Chaophraya by UHG.
Due to a large number of projects delayed due to the pandemic, 8,421 keys are expected to be added to Bangkok’s hotel supply in 2023, representing the largest annual increase in the past decade. Between April 2023 and December 2025, 16,774 keys are expected to open.
Here’s more from JLL:
In 1Q23, luxury hotels in Bangkok registered a y-o-y improvement in performance, with revenue per available room (RevPAR) increasing by 314.4% y-o-y to THB 6,340. This can primarily be attributed to growth in both occupancy and average daily rate (ADR), rising by 40 ppts and 78.2%, respectively.
Similarly, midscale and upscale hotels in Bangkok experienced a y-o-y increase in RevPAR of 218.7% to THB 1,454, and 318.2% to THB 2,945, respectively, as of YTD March 2023. Like the luxury hotels, the improvement in both segments are attributed to growth in both occupancy and ADR.
Outlook: Occupancy to gradually close pre-pandemic gap in 2023
With the abrupt announcement of China’s reopening, it is expected that travellers will need time to prepare, such as obtaining passport renewals and waiting for the reopening of tour agencies, before a significant increase in tourist arrivals will be seen. We expect the Chinese to return as the top source market for Thailand by the end of the year.
With hotels that were closed in Bangkok during the pandemic fully reopening in 1Q23, we expect the inflated rate to start normalising from 2Q23 onwards. The recovery outlook for Bangkok is bullish, and the hotels sector is expected to gradually close the gap with pre-COVID-19 levels throughout 2023. 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.