Bangkok hotels face softer demand as occupancy and room revenue decline

Dhaka: Bangkok's hotel market slowed in the second quarter of 2026 as higher airfares and disruptions to long-haul flights weighed on international travel, while thousands of new hotel rooms are set to enter the market over the next five years.

According to Cushman and Wakefield Thailand, hotel occupancy in the capital fell to 73 percent in the April-June period from 77 percent in the previous quarter. Revenue per available room (RevPAR) dropped 7 percent quarter-on-quarter to THB 2,672, while the average daily room rate eased slightly to THB 3,660.

The consultancy attributed the decline to seasonal factors, rising travel costs and disruptions to Europe-Asia air travel caused by tensions in the Middle East, which dampened demand from long-haul markets, particularly Europe and the United States.

Despite the softer performance, Bangkok's hotel supply continues to expand. Two new hotels opened during the quarter, adding 655 rooms and taking the city's total inventory to more than 147,000 rooms. A further 12,672 rooms are expected to come online between the second half of 2026 and 2031, representing about 8.6 percent of existing supply.

Cushman and Wakefield said hotel operators are likely to focus more on increasing guest spending and revenue per room rather than occupancy alone as competition intensifies. The firm also called for stricter enforcement against unlicensed accommodation providers, arguing they compete directly with registered hotels without being subject to the same regulatory requirements.

Despite short-term challenges, the consultancy said Bangkok's diversified mix of leisure and business travellers should help the city's hotel sector remain resilient.