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Thai Hotel Boom Defies Tourist Slowdown

by Nikhil Prasad

Key points

  • While Thailand’s tourism industry has experienced a mild downturn in 2025, the Real Estate Information Centre (REIC) reports that the country’s hotel development scene is showing no signs of slowing down.
  • According to this Thailand Hotel News report, Bangkok and nine other provinces accounted for nearly 75% of all new hotel rooms in Thailand, underscoring a continued optimism in the hospitality sector despite weakened foreign arrivals.
  • For the latest on the hotel market in Thailand, keep on logging to Thailand Hotel News.

Thailand Hotel News: Hotel Construction Surges Despite Falling Arrivals

While Thailand’s tourism industry has experienced a mild downturn in 2025, the Real Estate Information Centre (REIC) reports that the country’s hotel development scene is showing no signs of slowing down. During the first half of the year, the number of new hotels opened nationwide fell by 34.6%, and new hotel rooms decreased by 32.2%. However, the most surprising twist lies in where the new developments are concentrated. According to this Thailand Hotel News report, Bangkok and nine other provinces accounted for nearly 75% of all new hotel rooms in Thailand, underscoring a continued optimism in the hospitality sector despite weakened foreign arrivals.

Developers continue to build aggressively across Thailand even as foreign tourist arrivals soften in 2025
Image Credit: StockShots

Bangkok Leads with Massive Construction Surge

Bangkok led the list, with hotel construction applications skyrocketing by an astonishing 230.7% compared to the previous year. Other key provinces driving the boom included Chonburi, Rayong, Chiang Mai, Phuket, Krabi, Samut Prakan, Nakhon Ratchasima, Khon Kaen, and Prachuap Khiri Khan. Samut Prakan, in particular, experienced the steepest increase in new hotel rooms with a 366.7% year-on-year surge, signaling growing investor interest in the province’s expanding tourism and logistics hubs.

Tourist Numbers Show Uneven Recovery

Despite the construction boom, overall hotel performance has softened. Foreign arrivals dropped by 4.7% in the first half of 2025, with a sharper decline of 8.7% in total visitor arrivals compared with the same period in 2024. Chinese tourist arrivals plunged by 37.2%, a significant blow given their dominant role in Thailand’s pre-pandemic tourism market. Additionally, the national hotel check-in rate fell, with Bangkok’s occupancy dropping by 14%. However, some markets showed resilience—tourists from India rose by 13.8%, from Russia by 12.4%, and from the United Kingdom by 17.9%, partially offsetting the decline from Asia and Scandinavia.

Future Outlook and Market Sentiment

Analysts believe that Thailand’s long-term hospitality confidence remains strong, driven by investors betting on a full-scale rebound by late 2026. The current influx of new hotels, especially in high-demand urban and coastal regions, suggests that developers are focusing on long-term positioning rather than short-term occupancy numbers. The next 18 months will be crucial in determining whether this expansion proves prescient or overly optimistic, as the sector awaits stronger foreign demand recovery and sustained domestic travel momentum.

For the latest on the hotel market in Thailand, keep on logging to Thailand Hotel News.

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