Bangkok hotels face tougher competition after Q2 RevPAR falls 7%

Bangkok hotel occupancy fell to 73% and revenue per available room dropped 7% quarter on quarter as higher airfares and Middle East flight disruption weakened long-haul demand, while another 12,672 rooms are scheduled to enter the market by 2031.

Two hotels opened in Bangkok between April and June, adding 655 rooms to a market already dealing with weaker occupancy and lower room revenue.

The capital’s hotel stock reached about 147,230 rooms in the second quarter of 2026, up from 146,570 in the previous three months, according to Cushman & Wakefield Thailand’s Research and Advisory Services team.

Another 12,672 rooms are under construction or scheduled to open between the second half of 2026 and 2031. The pipeline is equal to about 8.6% of Bangkok’s existing hotel inventory.

The additional supply comes after average occupancy dropped from 77% in the first quarter to 73% in the second.

Average daily rate, or ADR, slipped from 3,730 baht to 3,660 baht. Revenue per available room, or RevPAR, fell from 2,872 baht to 2,672 baht, a quarter-on-quarter decline of about 7%.

Cushman & Wakefield attributed part of the drop to the usual transition from the year-end and early-year high season into the quieter second quarter. Higher travel costs and disruption to international flights added to the seasonal decline.

Higher airfares hit long-haul demand

International arrivals to Thailand were about 3% lower than in the same period last year, even though the Chinese visitor market showed signs of improvement.

The consultancy found that the pressure was most apparent among travellers from Europe and the United States. Higher ticket prices, concerns about the conflict in the Middle East and changes to flight routes made long-haul journeys more difficult and expensive.

Several airlines route Europe-Asia traffic through Middle Eastern hubs, exposing passengers to cancellations, delays and itinerary changes when fighting disrupts regional airspace.

Higher oil prices also fed directly into airfares, further reducing demand from long-haul markets and affecting hotel performance in Bangkok.

CBD holds more than half of Bangkok’s hotel rooms

Bangkok’s central business district accounted for 52.9% of the city’s hotel supply in the second quarter.

Watthana, which covers much of the northern Sukhumvit Road corridor, held the largest share within the CBD at 31.7%. Khlong Toei accounted for 25.3%, followed by Pathum Wan at 18%.

Four-star or upscale hotels formed the largest market segment, representing about 39% of all rooms. Three-star or midscale properties accounted for 29%, and five-star or luxury hotels made up 26%.

Bangkok’s hotel stock has shifted steadily towards the middle and upper tiers over the past two decades. The number of four- and five-star properties has risen since 2006, while three-star room supply expanded sharply and overtook luxury supply in 2016.

Room rates varied widely by location.

Pathum Wan recorded the city’s highest average rate at about 5,683 baht per night, driven by its concentration of luxury hotels around Lumpini Park, Rama I Road, Ratchadamri Road and Rama IV Road.

Watthana ranked second as more upscale and luxury properties opened along the northern section of Sukhumvit Road.

Hotels in outer Bangkok charged an average of about 1,806 baht per night, the lowest rate among the areas surveyed. Midscale and economy properties account for a larger share of the market outside central Bangkok.

Hotels put guest spending before occupancy

With long-haul demand under pressure and more rooms entering the market, Bangkok hotel operators are expected to place greater weight on spending per guest and revenue per room rather than pursuing occupancy alone.

Premium travellers will become a bigger target for operators seeking to offset weaker booking volumes from Europe and the United States.

Cushman & Wakefield nevertheless assessed Bangkok’s hotel market as resilient across its price categories, citing the city’s broad mix of leisure travellers, business visitors and other guests.

Registered hotels also face competition from accommodation operating outside the formal licensing system and marketed through online booking platforms.

The consultancy called for tighter inspections and stronger enforcement against unlicensed properties, which compete for the same customers without necessarily operating under the rules imposed on registered hotels.

The first properties in Bangkok’s 12,672-room development pipeline are scheduled to open in the second half of 2026.