Thai Hotel Bookings to Surpass 2019 Levels
September 12th, 2024 at 7:12 AM EDT
Skift Take
Krungthai Bank's research unit predicts Thailand's hotel industry to surpass pre-Covid levels this year, driven by strong domestic tourism growth, despite international arrivals still lagging behind 2019 figures.
| STR reported China hotel data for the week ended September 7th. China hotel RevPAR was down -6% year over year. The results were up against a tough +58.1% gain in the year-ago week. Hotel occupancy for the week ended September 7 was down -1.7% while ADR was down -4.4%, year over year. Krungthai Compass, the research unit of Krungthai Bank, said hotel bookings in Thailand are expected to exceed pre-Covid levels this year as domestic tourism surges. Foreign arrivals in the first half of the year were 17.5 million, still down -12% from 2019, but Thai domestic travelers were up 21% from 2019 to 136.2 million. The average daily rate was up 9% compared to 2019 at 1,920 baht per room. ADR in the South of Thailand was 2,486 baht per room. Krungthai expects occupancy rates to remain at 70.5% this year before rising to 71.9% in 2025. Foreign arrivals will still be down from 2019 at 36.5 million, but they expect Thai travelers to be up 19% on the pre-pandemic level to 271 million. Hotel revenue this year could reach 900 billion baht, up 13.6% year on year and up 102% compared to the pre-pandemic level. 500 billion baht would be from foreign travelers and 400 billion baht from Thai travelers. Next year they expect hotel revenue to rise to 960 billion baht. While they expect four and five-star hotels to see a quicker recovery, they warned that hotels graded three-star and below could face intense competition due to oversupply, a decline in backpackers and group tours, and competition from home-sharing businesses like Airbnb. Seibu Prince Hotels & Resorts said they plan to expand from 80 hotels to 250 by 2035. The Japanese hotel chain said at the International Hospitality Investment Forum Asia that they are targeting significant growth outside Japan, primarily in the Asia Pacific region. Their currently portfolio includes 80 hotels ranging from luxury to midscale, 31 golf courses and 10 ski resorts. They have four hotel brands – The Prince, Grand Prince Hotel, Prince Hotel and Prince Smart Inn, with an additional six brands through its international subsidiary StayWell Holdings. Marriott International and PT. Pakuwon Jati Tbk. announced an agreement to develop five additional properties, comprising more than 1,300 rooms across Indonesia. The properties in the signed pipeline include Jakarta Marriott Hotel Kota Kasablanka, Aloft Surabaya, Pakuwon Indah and Courtyard by Marriott Batam, all three expected to open in December 2029; and the Jakarta Edition and Westin Batam, both to open in December 2030. Marriott currently manages 1,925 rooms across seven hotels and one golf club for PT Pakuwon Jati Tbk, with three more properties set to open in 2025. With the five additional management agreements, Marriott is on track to oversee a total of 18 properties and 4,500 rooms in Indonesia by 2030. Ampang Hotel Sdn Bhd, owner of the Concorde Hotel Kuala Lumpur, addressed rumors that the property is for sale. They issued a statement assuring valued guests, partners and the community that the hotel is not for sale. This is the former Merlin Hotel. The media reports were that the hotel was for sale at an asking price of RM700 million. Wyndham Hotels & Resorts announced the signing of Ramada Encore by Wyndham Labasa, Damodar City with the Damodar Group. The signing marks the entry of the Ramada Encore brand in Fiji and the first property in the Wyndham system to be located on the island of Vanua Levu. The 40-room hotel will cater to both corporate and leisure travelers and will be the only internationally branded hotel in Labasa. There will be meeting and conference facilities and extensive food and beverage options. According to Visa's Asia Pacific Destination Forecasts 2023-2025, Fiji is expected to attract 1.13 million international visitors by the end of 2024 and 1.32 million by the end of next year. Nishitetsu Group, also known as The Nishi-Nippon Railroad Company, Ltd, opened its first CROOM brand hotel outside Japan – Nishitetsu Hotel Croom Bangkok Silom on September 9th. The hotel is the group's second hotel in Bangkok, this one located in the bustling Silom area. The new hotel features 172 rooms across six room types, catering to both business and leisure travelers. There is a breakfast restaurant on the B1 floor, which also functions as a co-working space. There is also a meeting room. Alliance Global Group said they are ramping up their hotel business expansion target to over 12,000 rooms by 2028 to 2029, instead of 2030. They believe the recent privatization of Ninoy Aquino International Airport is a game changer for the tourism industry in the Philippines. AGI is currently the largest hotel operator in the country with more than 8,000 hotel rooms spread across 19 operational, home-grown, and international hotel properties in the country. They have the 3,500-room Newport World Resorts which holds the distinction of having the highest hotel key count in any single property in the Philippines. They will soon launch the luxury development Newport Mansion, featuring all-suite rooms, garden villas and pool villas. It is connected to NAIA Terminal 3 via Runway Manila, to be fully connected to the rest of the resort by 2026. They confirmed two expansion projects, which include integrated casino resorts in Boracay and Cebu. The investment in Mactan World Resorts in Cebu will be at a cost of around US$400 million and will include a hotel and casino, slated to open by 2026. Boracay World Resorts will be located within AGI's 150-hectare Boracay Township. Personnel Moves Udman Hotels & Resorts announced the appointment of Vaibhav Verma as its Chief Executive Officer. The company is looking to Verma to help them complete their ambitious expansion plan to increase their portfolio from seven boutique and luxury hotels to 50 within the next five years. Verma's career included roles with brands such as Best Western, Business World Magazine, Accor Hotels, ITC Fortune Hotels, JHM Interstate Hotels, Taiping Carpets and Jaypee Hotels. His most recent role was Chief Revenue Officer at juSTA Hotels and Resorts. |
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