It was a banner year for Thailand’s hotel sector in 2016 with occupancy rates reaching an average of 75 per cent, data from STR, a hotel data company, reveals. In addition to this, room rates also rose in the country as the instability from 2014 looks to be firmly in the rear view mirror.
The full-year data from STR shows Thailand has recovered strongly from the political upheaval that occurred 2 years ago. There have now been 2 consecutive years of performance growth, a key indicator of success in the hotel industry.
Thailand’s nationwide occupancy rate reached an average of 75.4 per cent in 2016. This was an increase of 2.6 per cent when compared with 2015’s data. The country’s average daily rate also rose last year, climbing 1 per cent to THB3,617. STR also notes that revenue per available room rose 3.7 per cent to THB2,729.
These numbers highlight the fact that Thailand’s occupancy and ADR are among the strongest in the region. The country outperformed the Asia Pacific regional averages of 69 per cent for occupancy rate and US$100.46 for average daily room rate.
There were 48 nights last year in which Thailand recorded an occupancy level above 85 per cent. The average daily rate during those nights was more than 20 per cent higher than nights when occupancy below 85 per cent.
The year could have been even better for the country’s hotel sector. Thailand’s full-year performance was affected the floods which shut down some of the major tourist resorts in the southern area of the country during the fourth quarter.
An improved performance of Thailand’s hotel sector comes at a time when the country’s entire tourism industry is performing well. Last year the country welcomed a record number of international arrivals and for two years in a row the number of tourists has grown.
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