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Bangkok Hotels Increase in Room Rate

By on Oct 03, 2013 in Research

Bangkok Luxury Hotel MarketView Q2 2013

The number of international passengers disembarking at all AOT-managed airports increased by 17.5% Y-o-Y in Bangkok. China grew 105.2% Y-o-Y this quarter and still remains the largest inbound feeder market accounting for 19.5% of total visitors to Thailand. Russian arrivals increased by 44.3% Y-o-Y.

Q2 2013 Bangkok Luxury Hotel MarketViewGiven the growth in Asian feeder markets especially China, we believe economy hotels will grow this year because Asians would like to save money on accommodation in Bangkok in order to spend largely on food and shopping. The growth of low cost carriers in Asia is also spurring the arrivals of Asian tourists.

We expect that the rapid growth in tourism arrivals will improve the performance of hotels in Bangkok despite rising competition from new hotels. We could finally see the prospect of room rates starting to rise after being flat for almost five years.

Six new hotels opened in the second quarter of 2013, increasing the total downtown supply of hotels in Bangkok by 1,900 keys to 37,000 keys. This represented an increase of 5.2% Q-o-Q and 12.1% Y-o-Y.

CBRE forecast that an additional 4,500 keys will be completed by 2015, a 12% increase on current figures.

The average occupancy rate of hotels of all grades in Bangkok rose to 70.0% from 60.0% in the same period last year. We started to see an increase in ADR after being flat for a long period of  time. The Revenue per Available Room (RevPAR) represents an increase of 10.8%
Y-o-Y.

This is an extract from Bangkok Luxury Hotel MarketView Q2 2013, click to download the full report.

Toby has been living in Bangkok for a number of years and has a strong research background. With his years in Thailand Toby brings a wide range of property knowledge to his research writing

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