Bangkok hotel rates to stay low

21 Aug 2009

Business travellers to Bangkok are likely to benefit from a slump in room rates for the next two years, according to new research.

Jones Lang Lasalle Hotels predicts that occupancy rates are unlikely to rise above 50-60 percent in that period, according to the company which monitors hotel rates and occupancy regionally.

The report says that Bangkok has registered the biggest decline in average hotel occupancies across Asia, with the five-star segment contracting by 33.3 percent year-on-year in the first half of 2009.

On top of Thailand’s political troubles, fears about H1N1 and the global downturn, which have combined to cut visitor arrivals to Thailand by 21 percent annually, the fourth factor depressing rates will be a surge of almost an eighth in new hotels.

About 7,154 new international standard hotel rooms, representing an 11.2 percent increase in the Thai capital’s total room supply, will come online by the end of 2011. Of that figure, 50.7 percent is in the four-star category, with the remaining rooms spread equally between the three- and five-star categories.

Average daily rates (ADR) for five-star rooms declined by 9.8 percent year-on-year, to 5,175 baht (US$152) per night.

Four-star hotel average occupancy dropped by 20.5 percent year-on-year, with ADR contracting by 10.5 percent to 2,729 baht (US$80) per room per night.

Kenny Coyle

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