Thailand: New luxury hotels to soar in Bangkok
Riverside locations on Charoen Krung Road and the Sathon-Rama IV area have become the hot zones in Bangkok where a large number of new luxury hotel rooms are projected to open in 2023-25, according to property consultancy Colliers Thailand.
Phattarachai Taweewong, research and communication director at Colliers, said locations along the Chao Phraya River on Charoen Krung Road would have the largest number of new luxury hotel rooms, with 1,841 keys from five hotels opening in the next few years.
“That number will account for nearly half of the total new supply of luxury hotel rooms in the period,” he said.
“It will boost the market share of riverside areas from the current 24%, ranking it as the third-largest luxury hotel supply in Bangkok.”
The second-largest new supply of luxury hotel rooms will be in the Sathon-Rama IV area, with a total of 1,161 rooms from three hotels.
One of them is the Grand Nikko Bangkok Sathorn Hotel, a joint venture between Japanese contractor Nishimatsu Construction, Japanese leasing firm Fuyo General Lease, and the Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development.
Third for new luxury hotel supply is the Sukhumvit area with 669 rooms.
According to Colliers, there are a total of 3,725 new rooms from 13 luxury hotels scheduled to open in Bangkok in 2023-25.
Some 1,122 units are scheduled to open in 2023, followed by 1,934 in 2024 and 669 in 2025.
This year only one new luxury hotel is slated to open in Bangkok, the 155-room Standard Bangkok Mahanakhon that launched earlier this month, Mr Phattarachai said.
“The reopening was a positive factor helping the tourism sector and hotel business recover,” he said.
“As a result, the occupancy rate of Bangkok luxury hotels in the first half picked up to 41%, from 24% in the second half last year.”
The momentum should continue this year with an estimated occupancy rate of 50% in the fourth quarter, driven by the abolition of the Thailand Pass system and the extension of the “We Travel Together” scheme, a subsidy for domestic tourists, said Mr Phattarachai.
As of June 2022, the number of luxury hotel rooms in Bangkok tallied 12,943, with no new supply added in the first half.
New hotel supply in the first half was in the midscale and upscale categories, with a total of 724 rooms from 10 hotels.
He said the average occupancy for all Bangkok hotels in the first half rose to 34.6%, from 10.2% in the same period of 2021, with the number of Thai and foreign travellers coming to the city totalling 6.8 million and spending a combined 103 billion baht.
Mr Phattarachai said in the luxury segment, hotel occupancy grew to 41%, reliant on local tourists with the help of the subsidy campaign, and 2 million foreign visitors, particularly Indians, Malaysians and Britons.
The average daily rate at luxury Bangkok hotels was 3,420 baht, up 6.5% from the second half of last year.
“Tourism and hotel business in Bangkok is resuming, but hotels are still challenged by rising operational costs and a workforce shortage,” he said.