Key points
- The Project Number of New Hotels Opening in 2025 And 2026 Is Expected To Exceed A Total Of 31 New PropertiesImage Credit.
- Investor interest remains high and new hotel supply rose moderately in the first half with the openings of Veranda Resort Phuket Autograph Collection and Radisson Phuket Mai Khao adding 376 rooms.
- A further nine hotels with 1,758 rooms are scheduled to open in the second half bringing total new supply for 2025 to 2,134 rooms more than double the 884 rooms added in 2024.
Thailand Hotel News: Phuket’s steady rebound
Phuket shows clearer signs of stabilization in 2025 after a rapid rebound in 2024. In the first half of the year international arrivals at Phuket International Airport rose 5.6% year on year to 2.77 million passengers while domestic passengers edged up 1.4% to 1.69 million. The total number of air passengers reached 4.46 million, reflecting continued demand for the island even as growth has moderated from last year’s surge. According to Knight Frank Chartered Thailand, Russia China and India remain Phuket’s primary foreign markets followed by the United Kingdom and Germany and this Thailand Hotel News report notes that Chinese visitation to Thailand overall still lags pre pandemic levels.
New hotel openings and steadier arrivals signal investor confidence as Phuket evolves into a more diversified tourism destination.
Image Credit: Ritz-Carlton Phuket
Regional competition and changing tastes
Travel patterns across Asia are evolving rapidly and Phuket now faces firmer competition from destinations such as Da Nang Phu Quoc and even domestic rivals within Thailand. In the first half of 2025 Vietnam recorded 2.7 million Chinese arrivals and Japan 4.7 million, reflecting shifting preferences for perceived safety better value and fresh experiences. Large Chinese group tours have not fully returned and many visitors now opt for independent travel or small groups which has altered demand dynamics especially for mid-market hotels and traditional large tour operators.
Hotel performance remains robust
Despite these shifts Phuket’s hotel sector delivered solid results in H1 2025. Average occupancy rose to 79.5% compared with 79.1% a year earlier with the peak season from January to April particularly strong. January peaked at 91.8% occupancy and all four months recorded rates above 81% while June registered the expected low of 66.9% in line with seasonal patterns. Average daily rates increased 7.8% to 5,652 baht supported by strong performance in luxury and upper upscale beachfront resorts and international branded properties. After two years of steep rate increases room pricing is now stabilizing into a more balanced environment.
The Project Number of New Hotels Opening in 2025 And 2026 Is Expected To Exceed A Total Of 31 New Properties
Image Credit: Marina Phuket Hotel
New supply accelerates investor confidence
Investor interest remains high and new hotel supply rose moderately in the first half with the openings of Veranda Resort Phuket Autograph Collection and Radisson Phuket Mai Khao adding 376 rooms. A further nine hotels with 1,758 rooms are scheduled to open in the second half bringing total new supply for 2025 to 2,134 rooms more than double the 884 rooms added in 2024. Most incoming projects fall into the upscale upper midscale and lifestyle categories backed by international chains such as Marriott Accor Wyndham and Radisson alongside regional and domestic developers. This pipeline marks a strategic shift from Phuket’s traditional luxury focus toward a more diversified product mix.
Market implications for operators
The surge in new rooms will intensify short term competition and test pricing discipline distribution and marketing strategies. Operators that rely solely on pre pandemic models or large tour groups may face pressure while those that invest in direct booking capabilities targeted marketing and differentiated experiences will be better placed. Domestic travellers remain an important buffer during low season but high travel costs and competition from other Thai destinations mean local demand alone will not carry the market.
A cautiously optimistic outlook
Phuket enters the second half of 2025 with steady momentum underpinned by resilient international demand improved regional connectivity and visa exemptions for several key markets. Full year occupancy is projected to average around 78 to 80% with fourth quarter peak season occupancy expected to exceed 85%. ADR should hold steady while RevPAR gains will be driven mainly by higher occupancy particularly in off peak months. To protect margins and sustain long term growth hoteliers must strengthen digital distribution diversify market sources and sharpen value propositions for both luxury and mid-market segments. If operators act decisively Phuket can absorb new supply maintain profitability and remain a leading resort destination in Asia.
For the latest on new hotels debuting in Phuket, keep on logging to Thailand Hotel News.
