Bangkok Hotels MarketView - Q4 2014

Recovery in 2015 is expected given a large increase in Chinese arrivals in December

QUARTERLY HIGHLIGHTS

• The Average Daily Rate (ADR) of all grades of hotels in Bangkok was around THB 3,000, a drop of 2% Y-o-Y.
• Revenue per Available Room (RevPAR) of all grades of hotels in Bangkok was around THB 2,000 in 2014, representing a drop of 18% Y-o-Y, largely due to a sharp decrease in the average occupancy rate.
• CBRE forecasts that the supply of hotel rooms in Bangkok will increase 12% by 2018.
• Tourist arrivals for the whole country decreased by 6.7% Y-o-Y to 24.8 million. China remains the biggest feeder market with 4.62 million arrivals in 2014, accounting for a 18.7% share of total international tourist arrivals.

OUTLOOK

A jump in the number of Chinese arrivals in December 2014 by 87% Y-o-Y was a positive sign for 2015. We expect that there will be a continued downturn in Russian arrivals which will affect resort markets more than Bangkok.

Future performance depends on the two key growth markets which are China and India. India is the sixth largest feeder market but the potential for growth is positive.

The rate of future supply has slowed which will benefit the industry.

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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