Bangkok’s Growing Hotel Supply
Bangkok’s hotel market saw the addition of seven new hotels in the first half of 2025, contributing a total of 1,906 keys to the city’s inventory. These included a mix of high-end, midscale, and upper-midscale properties. Some of the most notable openings were the Grande Centre Point Lumpini, which added 512 rooms, and the Four Points by Sheraton with 333 rooms. The influx of these new properties reflects a broader trend in the industry, with both domestic brands like The Quarter and international chains such as Radisson and Four Points making their mark in the city.
This expansion is part of a larger trend, as a further 12 hotels, totaling 3,283 rooms, are expected to open by the end of 2025. This continued pipeline indicates the growing confidence in Bangkok’s hospitality sector, even as competition intensifies.
Occupancy Rates Dip as Competition Increases
Despite the increase in hotel room supply, Bangkok’s average hotel occupancy rate showed a decline in the first half of 2025. The rate fell to 75.1%, which is a drop of 3.7 percentage points from the same period last year. January and February saw relatively high occupancy rates above 81%, but by June, the number had dropped significantly to just 69.8%. This marks the lowest monthly occupancy in over a year, indicating that the market may be reaching a phase of stabilization after the surge in demand seen during the post-pandemic recovery.
The reduced occupancy rates are primarily attributed to a combination of factors, including a rising supply of rooms, shorter stays, and increased regional demand. As more travelers from neighboring countries book shorter trips, the demand for high-yield international visitors has decreased, putting downward pressure on both occupancy and rates.
Rate Growth Slows Amid Declining Demand
Alongside the drop in occupancy rates, the average daily rate (ADR) for hotel rooms in Bangkok increased modestly in 2025. The ADR in the first half of the year was THB 4,260, up 3.3% from THB 4,121 in the same period in 2024. This growth, while positive, has been sluggish compared to the rapid increases seen earlier in the post-pandemic recovery phase. The highest ADRs were recorded in January, while May and June saw the lowest rates.
Despite this small increase in room rates, the combination of falling occupancy and limited ADR growth led to a decrease in revenue per available room (RevPAR). Particularly in the second quarter of 2025, the hotel market faced significant pressure, with several months showing stagnant or negative year-on-year comparisons.
A New Competitive Landscape
The influx of new hotel rooms and a slowdown in the overall market performance have created a more competitive environment in Bangkok. As supply continues to grow and demand becomes increasingly focused on volume, operators are facing the challenge of differentiating themselves in a crowded market.
Many newly opened hotels are located in emerging or revitalized urban districts, contributing to the decentralization of Bangkok’s hotel scene. This shift is gradually spreading the hotel footprint beyond traditional tourist hotspots and creating more options for travelers. Domestic brands like Queensland Hotel and The Quarter are aggressively expanding in the upper-midscale segment, while international brands such as Radisson and Four Points are strengthening their presence in key locations across the city.
Future Outlook for Bangkok’s Hotel Market
As more hotels enter the market and competition increases, operators will need to adjust their strategies to maintain profitability. The focus will likely shift towards refining market segmentation, improving digital distribution channels, and bolstering customer loyalty programs. Given the rising number of new properties and the growing need for differentiation, hotel brands will need to deliver stronger, more targeted experiences to attract and retain guests.
With a growing emphasis on price sensitivity, operators may also have to rethink their pricing strategies, offering more flexible packages or enhanced loyalty perks to remain attractive to both international and local travelers.
The Road Ahead for Tourism in Bangkok
Despite the challenges faced by the hotel industry, Bangkok remains one of Southeast Asia’s most popular tourist destinations. The city continues to be a major hub for both leisure and business travelers, offering a wide array of attractions, from cultural landmarks like the Grand Palace to modern shopping centers and vibrant nightlife. As the global tourism landscape continues to evolve, Bangkok’s hotel sector will need to adapt, embracing technology and new service standards to meet the demands of a post-pandemic world.
Key Trends Shaping Bangkok’s Hotel Market
Increased Supply: The addition of new hotels, both domestic and international, continues to shape the city’s accommodation options.
Declining Occupancy: As more hotel rooms come online, average occupancy rates have seen a dip, signaling a shift in market dynamics.
Modest Rate Growth: While room rates have increased, the growth is slower than anticipated, putting pressure on revenue per available room.
Decentralization: New hotels are emerging in less traditional locations, contributing to a more diverse hotel landscape across the city.
Rising Competition: As supply grows and demand stabilizes, competition among hotels intensifies, pushing operators to refine their strategies
Tags: Bangkok’s Hotel Market, Tourism, hotel supply
