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Bangkok Luxury Hotel MarketView Q1 2011

By on Jun 16, 2011 in Research

The number of disembarking international passengers at all AOT-managed airports in Bangkok increased by 9% Y-o-Y while tourism in Phuket grew strongly with the number of disembarking international passengers increasing by 26%Y-o-Y in Q1 2011.

As the result of the growth in the tourism market in Bangkok, the average occupancy of upscale hotels in Bangkok increased to 65% in Q1 2011 from 59% in the same period last year. However, increased competition from new hotels continued to push down rates. Upscale hotels are especially affected by the increased competition which led to a decrease in the ADR of 15% Y-o-Y to THB 5,789. Revenue Per Available Room (RevPAR) was THB 3,685 in Q1 2011, a decrease of 9% Y-o-Y.

The solid performance of tourism market in the first quarter of 2011 is a strong indicator of the growth prospects for this year. However, the MICE market has not yet recovered as there is still political uncertainty.

Future supply entering the market will have significant impact on the performance of existing hotels. There are approximately 8,442 new keys scheduled to be added to the hotel stock by the end of 2014, bringing the total hotel supply to 38,999. This represents a 33% increase on current figures.

Increases in serviced apartment supply in the future will further intensify competition. The supply of serviced apartments increased by 6% Y-o-Y in Q1 2011 to 14,684 and is expected to grow by an additional 7% by the end of 2012.

This is an extract from Bangkok Luxury Hotel MarketView Q1 2011, 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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