Bangkok Hotel Market 1H 2024

Market Overview

Bangkok's tourism industry continues its robust recovery in 2024, with international arrivals surging by 34% year-on-year (YoY) to 15.4 million, though still trailing pre-pandemic levels by 12%. Meanwhile, domestic arrivals have stabilized at 7.5 million, though they remain 19% below 2019 figures. Hotel occupancy rates have also seen an uptick, climbing 4.8 percentage points (p.p.) to 74%, while the Average Room Rate (ARR) has increased by 6.3% YoY, now standing 22% above pre-pandemic levels.

Asia remains the dominant source market for international visitors, with China leading at 20% of the total, followed by Malaysia at 14%. Europe is the second-largest market, accounting for 21% of all foreign arrivals, with Russia emerging as the top source.

Carlos Martinez, Director of Research and Consultancy at Knight Frank, highlighted that "Bangkok's hotel industry is capitalizing on this resurgence. In the first half of 2024, occupancy rates reached 74%, reflecting a 4.8 p.p. rise compared to the same period in 2023. While occupancy has yet to fully recover to pre-pandemic levels, the steady upward trajectory suggests continued improvement as international travel normalizes."

Carlos also mentioned that "the ARR has reached an impressive 4,154 baht, marking a 6.3% YoY increase and a remarkable 22.7% above pre-pandemic figures, largely driven by the high-end hotel segment."

The first half of 2024 also witnessed the addition of seven new hotels in Bangkok, contributing 1,631 rooms to the market, primarily in the midscale and economy segments. This brings the total number of hotel rooms in central Bangkok to 83,194. According to Carlos, "Looking ahead, the second half of 2024 is poised for further growth, with an additional 5,246 rooms expected to be added in central Bangkok, representing an 8.4% year-over-year increase."

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