Bangkok hotels shift towards premium growth over next three years
Colliers says Bangkok’s hotel market is shifting towards premium stays, with more than 5,000 new rooms expected over the next three years
- Bangkok's hotel market is experiencing a "premiumisation" trend, where higher-spending tourists are prioritizing value and experiences over price, boosting revenue even as overall visitor numbers have slightly decreased.
- Average daily hotel rates rose by 3.17% and occupancy increased to 75.2% in the first quarter, driven by a clear rise in spending per visitor.
- The shift is supported by changing tourist demographics, including more high-spending independent travelers from China and long-stay visitors from key European markets.
- Reflecting confidence in this trend, over 5,000 new hotel rooms are expected between 2026 and 2028, with a majority (60-65%) planned for the luxury segment.
Bangkok’s hotel market is moving into a new premiumisation cycle, as higher-spending travellers continue to support room rates even though overall tourist arrivals have softened.
A first-quarter 2026 report by Colliers Thailand found that the capital’s hotel sector is shifting away from a race for tourist volume and price competition towards higher-value stays, stronger brands and more experience-led offerings.
The average occupancy rate for Bangkok hotels stood at 75.2% in the first quarter, up 1% from the same period last year. The average daily rate rose to 4,576 baht per night, up 3.17% from 4,438 baht in 2025.
The figures suggest that although foreign arrivals to Thailand fell by about 2% year on year in the first quarter, tourism revenue dropped by only 0.22%, reflecting a clear rise in average spending per visitor.
Travellers pay more for better experiences
Kanyapuk Vetkullpat, associate director of real estate development advisory at Colliers Thailand, said the trend showed that Bangkok’s hotel market was entering an era of premiumisation, particularly in the upper-upscale, upscale and luxury segments.
She said modern travellers were placing greater value on health, privacy, lifestyle and personalised experiences, rather than looking only for affordable rooms or convenient locations.
That shift is encouraging hotels to invest more in wellness services, food and beverage offerings, design, activities and spaces that reflect guests’ lifestyles.
Colliers described this trend as “value-driven tourism”, where visitors are willing to pay more for a better overall experience. This has allowed hotels to keep raising room rates even when traveller numbers have not increased significantly.
Chinese demand shifts towards higher-spending visitors
Chinese tourists remain an important market for Bangkok, accounting for around 18-22% of total foreign guest nights.
However, the structure of that market has changed. Instead of large mass-market tour groups, Bangkok is seeing more free independent travellers and luxury tour groups with stronger purchasing power.
Chinese arrivals recovered by around 12% year on year in the first quarter after the Chinese New Year period. Long-haul markets from Russia, Germany and the United Kingdom also remained key drivers because these visitors tend to stay longer and spend more per trip.
More than 5,000 new rooms expected
The premiumisation trend is pushing operators to reposition towards the upper end of the market.
Colliers expects more than 5,000 new hotel rooms to enter Bangkok’s market between 2026 and 2028. Around 60-65% of these rooms are expected to be under international luxury hotel brands.
New supply is likely to be concentrated in three key locations: the Ploenchit-Langsuan-Wireless Road luxury CBD corridor, the Chao Phraya riverside areas around Charoen Krung and Yannawa, and the Ratchadaphisek-Rama IX district, which is emerging as a new business and lifestyle hub.
A number of new hotel projects and global luxury brands are also preparing to open in Bangkok, particularly along the Chao Phraya River. Colliers said this reflected developers’ confidence in Bangkok’s potential as a regional destination for tourism, business and lifestyle.
New supply may intensify competition
The growing pipeline, however, could put pressure on occupancy rates if demand does not expand quickly enough.
Colliers expects the average occupancy rate for 2026 to edge down slightly to around 74% as new supply enters the market.
Government tourism policy will also be important. Colliers said the 60-day visa-free measure covering 93 nationalities remained a key tool for sustaining tourism momentum. Any reduction or cancellation before the year-end high season could directly affect occupancy, revenue per available room and hotel earnings.
Geopolitical uncertainty, airfares and international flight routes are also major variables for operators.
On the investment side, Colliers expects hotel-asset transaction value in 2026 to fall from last year’s unusually high level, when total transactions exceeded 100 billion baht. However, investor interest remains strong, particularly among Japanese investors, foreign funds and major Thai groups looking for hotel assets in Bangkok, Phuket and Pattaya for renovation or repositioning.
Colliers said demand for hotel investment remained high, but many deals were taking longer to close because buyers and sellers still had different expectations on returns.
Hotels urged to look beyond room revenue
For the next phase, Colliers advised operators to diversify their customer base towards higher-spending markets in Europe, the Middle East and ASEAN.
It also recommended that hotels build revenue from non-room businesses such as wellness, food and beverage, event spaces, retail and branded residences to reduce dependence on room sales alone.
Colliers said Bangkok was entering a new competitive cycle in which hotels would no longer compete mainly on price or room numbers. Instead, long-term value would depend on the quality of guest experience, brand differentiation and the ability to meet the expectations of modern travellers.
