The number of hotels in central Bangkok continued to expand rapidly in the first half of the year.
According to the latest survey by property consultant CBRE Thailand, hotel supply in the Thai capital increased 12.1% year-on-year, following the completion of six new hotels in the first six months of 2013. That means there are now 37,500 hotel rooms in central Bangkok.
In addition, approximately 2,250 new rooms are expected to come online in the second half of 2013, spread across a range of market segments, including luxury (13%), upscale (8%), midscale (46%) and economy (33%).
CBRE noted that “almost all” of the new hotels are in high-rise buildings, with the Sukhumvit area being most popular, accounting for 65% of the total hotel supply and four out of six of the new hotel openings. The Silom/Sathorn area accounted for 21% of the total hotel stock while the riverside area has 14% of supply.
And according to James Pitchon, executive director of CBRE Research & Consulting Thailand, the increase in supply could present challenges to Bangkok’s hoteliers.
“The big challenge for hotel owners is to raise the room rates which have not grown significantly for the last five years,” Pichton said. “[But] the second half of 2013 may finally see the growth in visitor arrivals outpacing new supply allowing owners to raise rates.”
A further 4,400 additional rooms expected to be added to central Bangkok’s inventory the end of 2015, bringing the city’s total to almost 42,000 rooms – an 11.9% increase on current figures.
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