New luxury hotels are taking off in Bangkok
Openings should accelerate soon
Waterfront locations on Charoen Krung Road and the Sathon-Rama IV area have become hot spots in Bangkok where a large number of new luxury hotel rooms are expected to open in 2023-25, according to real estate consultancy Colliers Thailand.
Phattarachai Taweewong, research and communications director at Colliers, said locations along the Chao Phraya River on Charoen Krung Road would have the highest number of new luxury hotel rooms, with 1,841 keys to five. hotels that will open in the next few years.
“This number will represent nearly half of the total new supply of luxury hotel rooms over the period,” he said.
“This will increase the market share of waterfront areas from the current 24%, making it the third largest luxury hotel offering in Bangkok.”
The second largest supply of luxury hotel rooms will be in the Sathon-Rama IV area, with a total of 1,161 rooms across three hotels.
One of them is the Grand Nikko Bangkok Sathorn Hotel, a joint venture between Japanese contractor Nishimatsu Construction, Japanese leasing company Fuyo General Lease and Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development.
The third for the new luxury hotel offer is the Sukhumvit area with 669 rooms.
According to Colliers, there are a total of 3,725 new rooms in 13 luxury hotels scheduled to open in Bangkok in 2023-25.
Some 1,122 homes are expected to open in 2023, followed by 1,934 in 2024 and 669 in 2025.
Only one new luxury hotel is set to open in Bangkok this year, the 155-room Standard Bangkok Mahanakhon which launched earlier this month, Phattarachai said.
“The reopening has been a positive factor that has helped the tourism and hospitality sector recover,” he said.
“As a result, Bangkok’s luxury hotel occupancy rate in the first half rose to 41% from 24% in the second half of last year.”
The dynamic should continue this year with an occupancy rate estimated at 50% in the fourth quarter, driven by the abolition of the Thailand Pass system and the extension of the “We Travel Together” system, a subsidy for national tourists, indicated Mr Phattarachai.
In June 2022, the number of luxury hotel rooms in Bangkok stood at 12,943, with no new supply added in the first half.
The new hotel offer in the first half of the year is in the medium and upscale categories with a total of 724 rooms spread over 10 hotels.
He said the average occupancy rate for all hotels in Bangkok in the first half of the year rose to 34.6% from 10.2% in the same period of 2021 as the number of Thai and foreign travelers coming to the city totaling 6.8 million and spending a total of 103 billion baht. .
Mr. Phattarachai said that in the luxury segment, the hotel occupancy rate had risen to 41%, depending on local tourists with the help of the subsidy campaign, and 2 million foreign visitors, especially locals. Indians, Malaysians and Brits.
The average daily rate at luxury hotels in Bangkok was 3,420 baht, up 6.5% from the second half of last year.
“Tourism and hospitality in Bangkok are picking up, but hotels are still facing rising operating costs and labor shortages,” he said.