Bangkok sees three new luxury hotels in Q3

A total of 588 keys were added to the market.

Data from JLL revealed Bangkok saw the opening of three new properties in 3Q23 totalling 588 keys, namely, the 324-key Hotel JAL City Bangkok, the 208-key INNsiDE by Melia Bangkok Sukhumvit, and the 56-key Madi Paidi Sukhumvit 53 Autograph Collection. 

According to JLL, due to a large number of projects being postponed due to COVID-19, 1,630 keys are expected to be added to Bangkok’s hotel supply by the end of 2023, leading to a total of 13,524 keys to open between October 2023 and December 2025.

Here’s more from JLL:

All hotel segments in Bangkok continued their recovery in trading performance, boosted by increased average daily rate (ADR) and occupancy. Along with improved air capacity in the region, this resulted in more international tourists registered.

In particular, luxury hotels in Bangkok recorded a y-o-y improvement in performance, with revenue per available room (RevPAR) increasing to THB 5,676. This was primarily attributed to growth in both occupancy and ADR, which rose by 44 percentage points and 38.7% respectively during the same period.

Outlook: Occupancy to close gap with pre-pandemic levels in 2023

The outlook for Bangkok’s recovery is optimistic, with hotels expected to steadily close the gap with pre-COVID-19 levels throughout 2023. The fourth quarter of 2023 is anticipated to mark the first significant high season in Bangkok in three years since the onset of the pandemic.

The upcoming expansion and renovation of Don Mueang airport is expected to increase passenger capacity. These upgrades, as well as BTS and MRT expansions, should boost further growth in tourism, enabling hotel development further away from the existing nodes of the city centre. Over the short to medium term, we expect occupancy to remain stable as large upcoming supply is absorbed by rising arrivals.

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