Bangkok hotel supply to grow at a 3.3% CAGR by 2027

Over 19,2000 new hotel rooms are expected to enter the market.

According to JLL, in H1 2024, 10 hotels opened, adding 1,959 new rooms to the existing hotel supply. Between 2024 and 2027, Bangkok will count a total of more than 19,200 new hotel rooms, representing a CAGR of 3.3%.

The existing hotel room supply (as of YTD May 2024) in Bangkok is mainly represented by two segments – midscale and upscale. JLL added that midscale hotels account for 38.1% of the total room supply, with Sukhumvit being the most popular hotel development area.

Here’s more from JLL:

At a city-level, Bangkok hotels registered a notable increase in RevPAR y-o-y in H1 2024 and above 2019, boosted by a notable rise in occupancy and a continued increase in ADR. Entry-level segments recorded the strongest growth y-o-y.

In the first six months of 2024, Bangkok recorded a total of more than THB 6.5 billion of hotel transactions, led by major deals such as Karnmanee Palace Hotel, Hotel Mermaid Bangkok and Ananda’s Ascott portfolio.

Outlook: Bangkok hotel market to remain resilient but Q3 2024 could be challenging

The series of measures to boost inbound tourism (visa facilitation schemes), along with improved airlift, should enable Thailand to record continued rise in international visitation. In 2024, Thailand anticipates 40 million of foreign visitors.

As a result, hotel trading performance should further improve despite pressure of large incoming supply, with the upscale hotel segment expected to overtake the midscale segment as the biggest supply segment by 2027.

Note: Bangkok Hotels refers to Bangkok's overall hotel market.