Hotels in Greater Bangkok should brace for an influx of new supply while average occupancy rates declined, contrary to rising figures in other regions, according to the Real Estate Information Center (REIC).
Siddhipen Siddharthapong, acting assistant director-general of the REIC, said Greater Bangkok had the largest expansion in hotel construction area nationwide, surging by 230% in the first half of 2025 year-on-year.
“The growing pipeline signals a significant increase in future supply,” she said. “This poses challenges for hotel operators in Greater Bangkok to plan and adjust strategies to mitigate risks from potential oversupply.”
During the first half of 2025, the number of hotel construction permits nationwide dropped 15.1% to 908, but total approved floor area rose 29.6% to 583,288 square metres, reflecting larger project sizes.
Greater Bangkok led the expansion, followed by the northern area with a 113% increase, while the western area gained 93.3% and the southern portion 12.3%.
The South accounted for the largest share at 249,379 sq m, or 42.8% of total approved area.
The top 10 provinces represented 85.7% of total hotel construction area, with Phuket leading the way with 195,271 sq m, up 20.1%, accounting for 33.5% of the national total.
This was followed by Bangkok, Chon Buri, Kanchanaburi, Nakhon Ratchasima, Phangnga, Krabi, Rayong, Chiang Mai and Lamphun.
Among these, construction area declined only in Chon Buri (down 49.9%) and Nakhon Ratchasima (down 24.7%), while the remainder posted growth.
Nationwide, new hotel business licences dropped 34.6% year-on-year to 232 in the first half, with total rooms dropping 32.2% to 8,946.
As a result, the number of registered hotels nationwide fell 3.7% year-on-year, while cumulative rooms declined 1.8%, reflecting continued caution among operators.
New hotel approvals declined across most regions, except the West, which remained unchanged.
Greater Bangkok accounted for the largest number of newly approved rooms at 3,012, representing 33.7% of the total, up 16.4% year-on-year.
This indicates that developers had slowed new launches in the first half, particularly in the South and Central regions, where new hotel and room licences plunged by more than 50% year-on-year.
The top 10 provinces for newly approved rooms accounted for 75% of the total nationwide. These comprise Bangkok, Chon Buri, Rayong, Chiang Mai, Phuket, Krabi, Samut Prakan, Nakhon Ratchasima, Khon Kaen and Prachuap Khiri Khan.
Samut Prakan saw the sharpest increase, up 367%, followed by Prachuap Khiri Khan, Khon Kaen and Bangkok.
The steepest drops were in Chon Buri (down 63%), followed by Phuket, Krabi, Nakhon Ratchasima, Rayong and Chiang Mai.
REGISTERED HOTELS
As of mid-2025, Thailand had 16,369 registered hotels, down 3.7%, and a combined 703,751 rooms, down 1.8% year-on-year.
By region, Greater Bangkok led with 179,872 rooms, up 2.6%, accounting for 25.6% of the national total.
The South followed with 167,388 rooms (down 3.4% and accounting for 23.8%), and the East with 108,560 (down 7.9% and accounting for 15.4%).
The top 10 provinces by cumulative room count accounted for 60.5% of total rooms: Bangkok, Chon Buri, Phuket, Chiang Mai, Surat Thani, Krabi, Songkhla, Nakhon Ratchasima, Rayong and Chiang Rai.
In the first half of 2025, Thailand’s average hotel occupancy rate rose to 60.8% from 59.1% a year earlier, with all regions improving except Greater Bangkok, where occupancy fell 0.7 percentage points to 56.2%.
“This reflected weaker demand in Greater Bangkok, contrasting with rising cumulative room supply, leading to heightened market competition,” Ms Siddhipen said.
Foreign tourist arrivals fell 4.7% year-on-year to 16.68 million in the first half — the first decline since late 2021 — mainly due to a 34.1% plunge in Chinese visitors, who dropped to second place behind Malaysia.
Arrivals from Malaysia also fell 5.6%, compounding the overall decline. However, some markets grew strongly, including the UK at 17.9%, India at 13.8% and Russia at 12.4%.
The top 10 source markets comprised Malaysia, China, India, Russia, South Korea, the UK, the US, Japan, Taiwan and Laos, accounting for 61.1% of total arrivals.
Regional occupancy rates were led by the South at 70.9%, followed by the West (65.2%), East (63.1%), Northeast (59%), Greater Bangkok (56.2%), the North (55.5%) and the Central region (55.1%).