Thai Hotel Industry Forecasts Sustained Growth for 2025

 

Thailand's hotel industry is projecting a strong and sustained recovery throughout 2025, with both occupancy rates and average room prices set to rise, largely underpinned by a projected increase in overall tourist arrivals.

 

However, industry stakeholders are being urged to remain vigilant regarding emerging challenges.

 

As a crucial engine of the Thai economy, the real estate and service sectors – particularly tourism – are once again seen as primary drivers for national revenue and growth.

 

Amidst evolving market dynamics and shifting consumer demands, monitoring trends within the hotel business is paramount to capitalise on opportunities and address potential hurdles in the latter half of the year.

 

Data from SCB EIC Industry Insight indicates a positive outlook for 2025, with an anticipated nationwide average occupancy rate reaching approximately 75 percent.

 

This growth is attributed to a steady increase in domestic tourism, supported by a series of government promotional initiatives launched throughout the year.

 

Concurrently, international tourist arrivals are nearing pre-pandemic levels.

 

High-potential markets, such as Russia, are experiencing significant growth, with more travellers expected to visit Thailand and extend their stays, following a government policy extending their visa-exempt period to 90 days.

 

Average room rates are projected to climb by around 5 per cent year-on-year.

 

This increase is partly due to hotel operators, particularly those in the four-star and above categories, adjusting prices after undertaking renovations and upgrading services to align with contemporary tourism trends.

 

 

Furthermore, improved demand stemming from increased bookings, bolstered by ongoing promotional campaigns, is also contributing to the upward trajectory of room rates.

 

Chotika Tungsirisurp, Head of Research and Consulting at CBRE, echoed these sentiments, revealing that tourist arrivals are forecast to reach 40 million in 2025, up from 35.5 million the previous year.

 

Key source markets are expected to remain China, Malaysia, India, South Korea, Russia, and Taiwan.

 

On the supply side, an additional 80,000 keys are anticipated, marking a 7 per cent increase, with a notable influx of new luxury hotels. This expansion in the high-end segment is set to push average room rates past 4,000 baht per night.

 

From an investment perspective, property consultant JLL forecasts that the value of hotel transactions in Thailand could exceed 13 billion baht in 2025, with Bangkok continuing to be the most attractive location.

 

JLL notes that high-end hotels are expected to maintain stable performance, whilst the economy and mid-range segments are also set for improvement.

 

This reflects the diverse demands of modern travellers, who are increasingly willing to pay for premium services and unique experiences, including the growing trends of wellness tourism and 'workations'.

 

 

 

Looking towards the second half of 2025, several tourist destinations are poised for further impetus.

 

The real estate and hotel sectors stand to benefit from a new phase of the "We Travel Together" (Teaw Thai Kon La Krueng or Half Price Travel Scheme) project, scheduled to run from 4 July to 31 October 2025.

 

Additionally, visa exemption measures, implemented since mid-2024, are expected to stimulate travel and extend tourist stays, particularly for high-potential groups like Russian tourists who now enjoy extended 90-day stays.

 

Despite the positive outlook, continuous adaptation by operators remains crucial.

 

This includes embracing innovation, elevating service standards, and prioritising sustainability. The latter is increasingly driving Thai hotels to comply with new European Union regulations by 2026, a necessary step to maintain competitiveness and seize opportunities within the rapidly evolving global market.