The total number of hotel rooms available in Bangkok is set to increase by as much as 20% between now and 2021, according to CBRE Thailand estimates. At the moment 67% of all 1st-class and luxury hotels in downtown Bangkok are operated by international hotel brands and these companies will likely continue this domination.
“The downtown area of Bangkok has always been a preferred option for hotel developments. In this area alone, hotel supply is growing rapidly. The growth in supply means that there are more opportunities for local and international hotel management companies as more hotel owners may choose to outsource management of their properties,” says Chotika Tungsirisurp, CBRE Thailand Associate Director, to the Bangkok Post.
In all of Bangkok, 45% of the existing hotels are operated by international brands with 37% run by local hotel brands and 18% of hotel operating with no hotel brand. Several major new hotels have opened in the Thai capital recently under world famous brands.
Marriott International Group, which operates hotels such as St Regis, JW Marriott, and Renaissance, opened the Bangkok Marriott Marquis Queen’s Park recently in the Phrom Pong district. Hyatt Hotels has opened 2 new properties in 2018: Park Hyatt at the Central Embassy and Hyatt Place on Sukhumvit 24.
While international companies are on the top of the 1st-class and luxury hotel sector, more local brands manage mid-range hotels in downtown Bangkok. According to CBRE, local hotel brands manage about 43% of mid-range supply while international companies manage 35% of properties in this sector. This is different than the economy segment where management is split fairly evenly.
“Currently, about 20% of hotels in downtown Bangkok are economy hotels, where management is split evenly between self-managing, international brands and local brands. However, about 70% of the new economy hotels under construction in downtown Bangkok will be operated by international hotel brands,” says Chotika.