The Ascott Limited Thailand, the wholly owned lodging business unit of Singapore-based CapitaLand Investment, expects revenue, occupancy and room rates to recover in 2026, with plans to diversify into resort destinations such as Phuket and secure a management contract in Hat Yai.
Kanit Sangmookda, Ascott’s country general manager for Thailand and Laos, said the company is targeting 7% revenue growth, 5% occupancy growth, and a 1% gain in the average daily rate (ADR) next year.
“This year has been challenging as the hotel sector in Thailand remains weak, affected by slower arrivals,” he said. “Our 2025 performance may dip from 2024, which was a peak year for the tourism industry, but we expect a rebound to 2024 levels next year.”
In the first nine months of 2025, the company recorded an average occupancy rate of around 70%, led by Vientiane with 80%, followed by Pattaya and Si Racha, which both achieved 70%, and Bangkok with 68%.
While Somerset Vientiane was supported by long-stay guests, occupancy rates in Thailand declined significantly as demand softened, making it difficult for the company and other hotels to raise their ADR.
“Currency has affected demand, making Thailand less affordable compared with destinations such as Vietnam,” Mr Kanit said.
“However, we have seen a strong rebound this month, with performance matching or even exceeding 2024 levels. This momentum is expected to continue into the first quarter of 2026.”
He said although Chinese tourist arrivals have slowed this year, the nation remains a key contributor, ranking as Ascott’s second-largest source market for the first nine months, accounting for 17%, behind Japan at 20%.
Thailand ranked third at 9%, followed by South Korea, the US, Taiwan and Australia, with each of these markets accounting for 4%.
Corporate long-stay guests remain a core segment, representing 23%, while corporate short-stay accounted for 11%.
Online travel agencies contributed 36% and Ascott’s own reservation channels accounted for 6%.
To achieve growth next year, Ascott plans to diversify its portfolio by expanding into resort destinations, moving beyond its traditional focus on city locations. Phuket is the company’s first resort destination.
Ascott expects to manage Abov Patong Phuket Resort, a new 200-room hotel and branded residence project scheduled to open in the second quarter of 2027.
The company is also considering expansion to the beachfront in Pattaya, Samui and Hua Hin.
“Our properties are mainly located in cities — even in Chon Buri, they are in Si Racha near business hubs, while in Pattaya they are not on the beachfront as most of our guests are business travellers,” said Mr Kanit.
“However, we are expanding into leisure destinations to offer our members more variety.”
This month, Ascott is scheduled to sign a management contract for a new hotel in Hat Yai under the Oakwood brand, slated to begin next year.