Bangkok to welcome nearly 50 new hotels this year

This represents over 10,000 keys. 

There were 4 new properties representing 600 keys in Bangkok in 2021, two of which opened in December: the 226-key Novotel Bangkok Future Park Rangsit and the 85-key Wyndham Queen Convention Centre Hotel & Residences. Numerous owners delayed their targeted opening in 2021 due to the ongoing COVID-19 situation.

Due to the large number of projects postponed from initial opening in 2020 and 2021, JLL said a significant hotel supply is slated to start operating in 2022, with nearly 50 additional properties representing over 10,000 keys. While a considerable number of hotels will enter the market in 2022, it is also expected that multiple developments may either be delayed or abandoned.

Here’s more from JLL:

In 2021, luxury hotels in Bangkok registered a y-o-y drop in performance, with revenue per available room (RevPAR) dropping by -50.5% versus 2020 to THB 619. This can primarily be attributed to decreases in both occupancy and average daily rate (ADR) declining by -6.1 percentage points to 15.2% and -30.5% to THB 4,081, respectively, during the same period.

Similarly, midscale and upscale hotels in Bangkok experienced a y-o-y decline in RevPAR of -28.0% to THB 309 and -39.5% to THB 486, respectively, in 2021.

Outlook

As at mid-January, the Government re-introduced the Test & Go program allowing overseas arrivals to enter the Kingdom from the 1st of February should a covid test be negative upon arrival. With variant Omicron causing less severe symptoms, we expect a number of countries to relax travel restrictions currently in place allowing the industry to hope for strong signs of revival in 2022.

While the current situation remains uncertain, hoteliers could expect to see positive pick- ups in 2022 in line with a growing number of international arrivals to Thailand. Overall business is anticipated to be predominantly driven by domestic demand during the first half of 2022, while international markets, in particular Western countries, are foreseen to return from summer holidays onwards.