Hotel brands originating from Singapore and the United States continue to enter the hospitality market in Thailand because of the continued growth in the tourism sector of the country. This is after the warning given by experts on steep competition that might befall the industry in the next few years. There is no shortage of affordable hotel in Bangkok but many luxury hotels are still planning to penetrate the market.
WutthiphonTaworntawat, the managing director of Urban Hospitality Group said that there are additional hotel investors coming from both the domestic and international market. They are already scheduled to launch new brands of hotels in the capital city with a high concentration in the district of Sukhumvit.
Mr. Wutthiphon added that there are a number of hotels currently being built in Sukhumvit such as the Carlton group from Singapore, Hyatt Regency, Solaria Nishitetsu which is hotel brand from Japan, Ibis and Mercure as well as Hyatt Place.
Sukhumvit is currently the home of the most luxurious condominiums in the city. Ever since, the residential district has been the most preferred location by expats. The area has received a lot of attention in the last few years from those who are traveling both for business and leisure. Sukhumvit now boasts of its upscale malls, restaurants, office establishments and bars.
SupawanTanomkieatipume, the president of Thai Hotels Association, revealed that there is oversupply of hotel rooms in the capital city. The steep competition is also the reason why majority of hotels are unwilling to increase their room rates. She warned that a price war is inevitable with the launch of additional hotels.
Marriott International made an announcement in July regarding their target to launch additional 17 hotels in the country within a four-year period. Marriott has a total of 39 hotels in Thailand with almost 550 all over the world.
Majority of tourists in Thailand are backpackers that target affordable hotel in Bangkok and this is the reason why hotel brands in the category are trying to launch more hotels. JLL Hotels & Hospitality Group’s research revealed that hotel investment for the first six months of 2017 is over 10.7 billion baht.