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CBRE Research Thailand
© 2012, CB Richard Ellis (Thailand) Co., Ltd.
Bangkok Luxury Hotel
Tourist arrivals to Thailand
crossed the 22 million mark for
the first time in 2012.The
number of international
passengers disembarking at all
AOT-managed airports
increased by 16% Y-o-Y in
Bangkok and by 16% Y-o-Y in
Phuket in 2012. This was an
exceptional year for the
hospitality sector with tourism
growth pushing up the
performances of hotels in
Bangkok despite the rapid
increase in supply.
The stable political landscape in
2012 provided a strong
platform for tourism growth.
Record level tourist arrivals
pushed up the average
occupancy of hotels of all
grades from 63.5% in 2011 to
70.6% in 2012 while the overall
RevPAR increased by 11.9%
Y-o-Y according to STR.
MarketView
Q4 2012
Quarterly highlights
• The Average Daily Rate (ADR) of
all grades of hotels in Bangkok
was THB 3,019, an increase of
1% from 2011.
• Revenue per Available Room
(RevPAR) of all grades of hotels
in Bangkok was THB 2,134 in
2012, dropping by 12% Y-o-Y.
• CBRE forecasts that the supply
of hotel rooms in Bangkok will
increase 21% by 2015.
• Tourist arrivals increased by 16%
Y-o-Y. A large portion (56%) of
the tourists are from East Asian
countries.
RECORD LEVEL TOURISM ARRIVALS PUSHED UP HOTEL
OCCUPANCY BUT RISING COMPETITION KEPT ROOM
RATES DOWN
The main worry for hotels
remains room rates. The
Average Daily Rate (ADR) of
hotels increased by only 0.9%
Y-o-Y in 2012 and is still 5.0%
lower than it was in 2009. Some
hotels are getting lower room
rates than they were more than
20 years ago in 1990.
Hotels are facing the problem of
rising costs and this combined
with relatively small growth in
ADR means that existing hotels
must become more efficient by
increasing productivity across all
aspects of their operations.
The number of tourists arriving in
Thailand continues to be driven
by strong arrival growth from
Asia. China emerged as the
largest inbound feeder market
accounting for 12.4% of the
total tourist arrivals while the
number of tourists arriving from
Russia and India both broke the
one million mark.
OCCUPANCY
+11.2% q-o-q
REVPAR (USD)
+11.9% q-o-q
ADR (USD))
+0.9% q-o-q
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The total number of hotel rooms in downtown
Bangkok was 34,971, an increase of 3% Q-o-Q
and 10% Y-o-Y. Supply grew by 1,124 keys with the
completion of seven hotels this quarter. The
additional supply came from the opening of the W
Hotel (407 keys), The Siam (39 keys), the Continent
Hotel Bangkok (153 keys), Mercure Bangkok Siam
(189 keys), the Riva Surya (68 keys), the Ibis Bangkok
Siam (189 keys), and the Citrus Sukhumvit 13 (79
keys).
Figure 1: Hotel Supply in Downtown Bangkok
By Grade, 2012
Source: CBRE Research
Figure 2: Hotel Supply in Bangkok By Area,
2012
Most of the hotel supply in downtown Bangkok is
located in the Ploenchit/Sukhumvit area,
representing 63% of the total stock. This is followed
by the Silom/Sathorn area with 22% and Riverside at
15%.
Source: CBRE Research
Figure 3: Future Hotel Supply in Downtown
Bangkok, 2012
A further 5,100 keys are expected to be completed
by 2013. This will be made up of 300 luxury rooms,
1,700 first-class rooms, 2,800 mid-range rooms
and 300 economy hotel rooms.
Year Total Number of Units % Change Y-O-Y
2012 35,000 10%
2013F 40,100 15%
2014F 41,900 5%
2015F 42,200 1%
Source: CBRE Research
Year Total % Change Y-O-Y
2005 13,402,129 4.4%
2006 14,871,209 11.0%
2007 15,798,690 6.2%
2008 15,061,317 -4.7%
2009 14,454,954 -4.0%
2010 15,733,362 8.8%
2011 17,543,659 11.5%
2012 20,339,990 15.9%
Chart 4: Number of Disembarking
International Passengers of
Suvarnabhumi and Don Muang
Airports, 2005 –2012
Source: Airport of Thailand
The number of international arrivals at Bangkok
airports increased in 2012 by 15.9% Y-o-Y to
20,339,990 from 17,543,659 in 2011.
OUTLOOK
There are encouraging signs with the number of new
hotel construction permits issued declining
significantly over the past two years. Rising land prices
and construction costs will further deter developers
from developing new hotels as it becomes
increasingly harder to justify developments financially.
If tourist arrivals continue to grow and the amount of
future supply decreases then there is potential for
room rates to finally start to increase.
Ploenchit/
Sukhumvit
63%
Sliom/Sathon
22%
Riverside
15%
Luxury
18%
First-class
22%
Mid-range
45%
Economy
15%
© 2012, CB Richard Ellis (Thailand) Co., Ltd.
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© 2012, CB Richard Ellis (Thailand) Co., Ltd.
CONTACTS
For more information about this Bangkok Luxury Hotel MarketView, please contact:
+ FOLLOW US
CBRE Research, Thailand
James Pitchon
Executive Director
CBRE Research
CB Richard Ellis (Thailand) Co., Ltd.
46th Floor, CRC Tower, All Seasons Place
87/2 Wireless Road, Lumpini, Pathumwan
Bangkok 10330 Thailand
t: +66 2 654 1111 ext 205
CBRE Hotels, Thailand
Kulwadee Sawangsri
Executive Director
CBRE Hotels
CB Richard Ellis (Thailand) Co., Ltd.
46th Floor, CRC Tower, All Seasons Place
87/2 Wireless Road, Lumpini, Pathumwan
Bangkok 10330 Thailand
t: +66 2 654 1111 ext 301
www.facebook.com/CBRE.Thailand
www.facebook.com/CBRE.Condo.Society
@CBREThailand
BLOG
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Global Research and Consulting
This report was prepared by the CBRE Thailand Research Team which forms part of CBRE Global Research and
Consulting – a network of preeminent researchers and consultants who collaborate to provide real estate market research,
econometric forecasting and consulting solutions to real estate investors and occupiers around the globe.
Disclaimer
© 2012, CB Richard Ellis (Thailand) Co., Ltd. CB Richard Ellis (Thailand) Co., Ltd. confirms that information contained
herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their
accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your
responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use
by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior
written permission of CBRE.
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