Bangkok Luxury Hotel MarketView Q1 2010

Bangkok Luxury Hotel MarketView Q1 2010

The hotel sector in Bangkok has rebounded due to increasing levels of tourism, up 27.1 Y-o-Y, in Q1 2010. There was a marked improvement in the number of disembarking international passengers at all AOT managed Bangkok airports, increasing by 20.4% Y-o-Y in Q1 2010 compared to a decrease of 13.4% Y-o-Y in Q1 2009. Improving global economic situation is the major factor in the improvement. The number of tourists arriving in Thailand from East Asian countries, Thailand’s biggest tourist market, increased 29% Y-o-Y and 5% Q-o-Q. There was
further positive news from European tourist arrivals, increasing 24% Y-o-Y and 25% Q-o-Q.

Improving market conditions led to higher occupancy levels for luxury and first class hotels in Bangkok with 66% in Q1 2010, up from 56% the same period last year. For this quarter we have used the data provided by STR Global which covers a wider range of Bangkok hotels. However, the Averaged Daily rate (ADR) continued to decrease, down 4.2% from THB 3,453 in Q1 2009 to THB 3,309 in Q1 2010. Revenue Per Available Room (RevPAR) was THB 2,175 in Q1 2010, up from THB 1,992 in the same period last year. This was a Y-o-Y increase of 13.2%.