Asia -  Bangkok, Thailand

Bangkok tops the list in terms of relative gain in valuation having witnessed an approximate 69% increase in 2015 over that the previous year. An increase of this magnitude was a result of the market bouncing back after being suppressed in 2014 owing to the political crisis that led to social disruption in the capital city during the first half of the year. In 2014, the valuation in Bangkok dropped by almost 40% as the market lost 18% in occupancy due to the many postponements and cancellations of trips after issuance of travel warnings /advisories. The decline in rooms revenue, as the case is typically, was further magnified by a drop in profitability. In 2015, not only did Bangkok regain its 2013 level of occupancy but hotels managed to increase average rates by 2%. Omitting 2013 as an aberration, Bangkok has shown a year-on-year increase in valuation to the tune of 1% since 2013. On the transactions front, the city saw limited number of deals in 2015 as sellers were waiting for the market to realize its full potential after the setback in 2014. For reasons stated above, the Phuket market also rebounded in 2015, exhibiting 31% increase in value.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Bangkok RevPAR Change

Bangkok RevPAR

Year RevPAR
2013 85.67
2014 67.63
2015 82.25
2016 88.15
2017 (f) 90.62
2018 (f) 92.21

For more information, please contact:

Hok Yean CHEE
hychee@hvs.com
  • +65 6730-6308 (w)
  • +65 9686-6218 (m)