Many of Thailand's Budget Hotels Are Struggling
Skift Take
- China hotel RevPAR increased by 50.4% YoY, outperforming a 48.2% comparison and growing 19% compared to 2019, driven by strong recovery.
- Thai hotels, especially those with three stars or less, faced severe impact from interest rate hikes, uncertain tourism outlook, and competition, prompting calls for regulatory changes.
- New luxury hotels are opening in historic Japanese and Vietnamese destinations, while major hotel chains like Accor and Melia are expanding their portfolios in Singapore and Vietnam. Additionally, Meriton Suites is expanding luxury offerings across Australia.
STR reported China hotel data for the week ended August 26. China hotel RevPAR was up 50.4% year over year. It was up against a 48.2% comp. Compared with the same week in 2019, China hotel RevPAR was up 19%, a solid result once again.
A survey by the Thai Hotels Association and Bank of Thailand found that 29% of hotels rated three stars or less suffered a severe impact from interest rate hikes and might need debt restructuring. The Tourism Council of Thailand said something similar, as 34% remain uncertain about the tourism outlook, and 19% believe they will earn less this quarter than the previous one. The Bangkok Post blamed all this on the sluggish economies in China and Japan and an unequal tourism recovery that favors large operators. The TCT is asking the government to amend the laws preventing operators from registering their businesses, such as small hotels that face obstacles in obtaining a license. The THA said hotels incur a higher financial burden from increasing debt as interest rates remain elevated, with hotels with three stars or less faring the worst. The segment continues to com
