Bangkok Hotels MarketView - Q1 2015

Rates and performance improves as arrivals remain strong in Q1 2015

QUARTERLY HIGHLIGHTS

• The Average Daily Rate (ADR) of all grades of hotels in Bangkok was around THB 3,400, a growing 5% Y-o-Y.
• Revenue per Available Room (RevPAR) of all grades of hotels in Bangkok was around THB 2,700 in Q1 2015, representing a growth of 56% Y-o-Y, partly due to low base effect.
• Total supply was 40,029 keys as of Q1 2015. By 2018, there would be another 4,893 keys added.
• Tourist arrivals numbered 7.9 million in Q1 2015, growing by 24% from 6.4 million arrivals in Q1 2014. The growth trend of Chinese arrivals has continued, with 2 million arrivals this quarter, up by 96% Y-o-Y.

OUTLOOK

Going forward, if the tourism uptrend continues, we see a possible increase in hotel asking rates. However, the main downside risk to our forecasts is the Chinese economy. If China fails to achieve much touted soft landing, it could adversely affect Thailand tourism.

We are still quite optimistic that the oversupply situation will continue. Since hoteliers remain wary of a possible repeat of the recent political situation, launches and openings will likely continue to be slow.

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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