2022-08-02-莱坊-Bangkok_Luxury_Hotel_Market_1H_2022_5页_2mb

Bangkok Luxury Hotel Market Summary - 1H 2022

Core Content

The Bangkok luxury hotel market experienced a notable recovery in the first half of 2022, driven by the gradual easing of global travel restrictions and the Thai government's phased reopening plan. This recovery marked a turning point in the market, with improvements in both demand and supply indicators.

Main Points

• Market Recovery:

  • The number of inbound foreign arrivals to Bangkok increased significantly from over 160,000 in 2021 to approximately 2.2 million in 1H 2022, representing a year-on-year (YoY) increase.
  • Despite this growth, international arrivals still only accounted for 12% of pre-pandemic levels.
  • The recovery is expected to accelerate in the second half of 2022 with the full reopening of borders in July, which will eliminate most pandemic-related restrictions.

• Occupancy and ADR:

  • The occupancy rate for luxury hotels in 1H 2022 reached 33%, up 13 percentage points YoY.
  • The Average Daily Rate (ADR) rose by 11% YoY to THB 3,410, reflecting improved demand and market confidence.
  • Occupancy rates gradually increased from 26% in January 2022 to over 40% in May and June 2022.

• Supply Growth:

  • The total number of luxury hotel rooms in Bangkok reached 20,709, with 154 new rooms added in 1H 2022.
  • The Standard Hotel by Sansiri in the Mahanakhon building was the only new luxury hotel opening during the period, adding 154 rooms.
  • In the upscale segment, new openings included Eastin Grand Hotel Phayathai (394 rooms), The Quart Ruamrudee (150 rooms), and X2 Vibe Bangkok Udomsuk (150 rooms).

• Geographic Distribution:

  • Luxury hotel rooms are predominantly concentrated in the Early Sukhumvit area (34%), followed by Lumpini (24%), Riverside (17%), and Silom/Sathorn (15%).

• Market Outlook:

  • The recovery is expected to be led by leisure tourists, followed by business and MICE (Meetings, Incentives, Conferences, Exhibitions) groups.
  • RevPar (Revenue per Available Room) is anticipated to improve gradually, with ADR playing a key role in driving growth.
  • However, challenges such as new virus variants, outbreaks, and global economic factors like the Russia-Ukraine war affecting oil prices could impact the recovery.
  • The absence of Chinese tourists, who were a major market before the pandemic, remains a concern due to ongoing travel restrictions in China.

Key Information

• International Visitor Trends:

  • 39% of international visitors in 1H 2022 were from East Asia, led by Malaysia and Singapore.
  • 30% came from Europe, mainly from the UK, Germany, France, and Russia.
  • 11% were from India.

• Government Policies:

  • The Thai government announced a four-phase reopening plan, with the final phase expected to be fully implemented in July 2022.
  • It is anticipated that Covid-19 will be declared an endemic disease once daily infections stabilize, vaccination coverage is high, and symptoms are not severe.

• Industry Impact:

  • While international tourism is recovering, domestic tourism will continue to play a crucial role in supporting the market, especially due to the lack of Chinese outbound travelers.

Conclusion

The Bangkok luxury hotel market has shown signs of recovery in 1H 2022, with increased occupancy and ADR. However, the market remains vulnerable to external shocks and dependent on domestic tourism due to the absence of a major international market like China. The full reopening in July 2022 is expected to further boost the market, but the path to recovery may still face challenges.