Bangkok Hotel Business Landscape: Sluggish First Half of 2025

Strategic Insights -

Bangkok's hotel business showed signs of recovery in the first half of 2025, albeit with a sluggish performance. The city welcomed approximately 15.5 million international tourists, a modest 0.6% year-on-year increase. However, the number of visitors remains 11.3% lower than the pre-pandemic peak of 2019. The hotel market saw a decline in occupancy rates, dropping by 3.7 percentage points to 75.1%, while the average daily room rate (ADR) increased slightly to 4,260 baht. The focus for the latter half of the year will be on absorbing over 3,283 new rooms set to open before the end of the year.

Key Takeaways:

  • Occupancy rates dropped by 3.7 percentage points to 75.1% in the first half of 2025, resulting in a significant drag on performance.
  • The average daily room rate (ADR) increased slightly to 4,260 baht in the first half of 2025, compared to 4,121 baht in the same period last year.
  • Domestic tourism is not compensating for the decline in foreign markets, and measures such as visa exemptions and improved regional flight connections continue to support tourism.
  • The 'Half-Half Thai Tourism' initiative and new tax incentives are being introduced to boost local tourism, particularly in the low season during the second half of the year.
  • Recovery will largely rely on market growth and increased airline capacity, with positive growth from India (14.6%) and Russia (11.1%) remaining a bright spot.
  • Pressure on ADR is likely to persist, especially in the mid-range hotel segment, where competition from new entrants will limit pricing power.
  • Room rate performance will increasingly depend on brand value, effective distribution strategies, and prime locations.
  • For the luxury hotel segment, stability is anticipated, with demand driven by high-income travellers from the region and long-haul tourists.
  • The Grand Centre Point Lumpini and Four Points by Sheraton were notable hotel openings in the first half of 2025, adding 1,906 rooms to the market.
  • 12 more hotels with a total of 3,283 rooms are expected to open in the second half of 2025, highlighting the continuous growth of new projects and intensifying competition.
  • Foreign tourist arrivals to Thailand dropped by 7% in the first eight months of 2025, with the top 10 foreign tourist markets being China, Malaysia, India, Russia, South Korea, Japan, United Kingdom, United States, Taiwan, and Laos.

Statistics:

  • 15.5 million international tourists visited Bangkok in the first half of 2025, a modest 0.6% year-on-year increase.
  • The number of visitors remains 11.3% lower than the pre-pandemic peak of 2019.
  • Occupancy rates dropped by 3.7 percentage points to 75.1% in the first half of 2025.
  • The average daily room rate (ADR) increased slightly to 4,260 baht in the first half of 2025.
  • 3,096,017 Chinese tourists visited Thailand in the first eight months of 2025, a significant decline from the previous year.
  • Foreign tourist arrivals to Thailand dropped by 7% in the first eight months of 2025, with revenue from foreign visitors decreasing by 5.4% year-on-year.
  • The total foreign tourist revenue generated in the first eight months of 2025 was 1,014,303 million baht.

Sources:

  • [Knight Frank Chartered (Thailand) Ltd.]
  • [Hotel Occupancy Rates in Bangkok Show Decline]
  • [China and Malaysia Lead as Major Markets in the First Eight Months of 2025]
  • [Foreign Tourist Arrivals to Thailand Drop by 7% in First 8 Months of 2025]
  • [Ministry of Tourism and Sports]