Bangkok Hotels MarketView - Q1 2014

Bangkok hotels hit hard by political unrest

QUARTERLY HIGHLIGHTS

• The Average Daily Rate (ADR) of all grades of hotels in Bangkok was around THB 3,200 with no growth Y-o-Y.
• Revenue per Available Room (RevPAR) of all grades of hotels in Bangkok was THB 1,800 in Q1 2014, dropping significantly by 30% Y-o-Y.
• CBRE forecasts that the supply of hotel rooms in Bangkok will increase 14% by 2017.
• Tourist arrivals for the whole country decreased by 3% Y-o-Y to 6.6 million. China was still the biggest feeder market despite decreasing by 14% Y-o-Y to 0.97 million arrivals in Q1 2014, accounting for 14.7% share of total international tourist arrivals.

OUTLOOK

We believe that tourist numbers to Bangkok will resume provided there is an end to the political unrest but that growth will be heavily dependent on the Chinese feeder market. The reduced rate of new supply should mean that there is a reasonable possibility of demand growth exceeding supply growth allowing room rates to rise.

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CONTACT

Robert McIntosh
Executive Director - CBRE Hotels, Asia Pacific
O: +65 6326 1200
M: +65 8123 0208
E: robert.mcintosh@cbrehotels.com