Thailand’s RevPAR grows 15.4% in 2012 – STR Global

Monday, 18 February 2013 00:00 - - {{hitsCtrl.values.hits}}

STR Global said last week that Thailand’s RevPAR grew 15.4% to THB 2,232 in 2012. The returning demand levels (+13.3%) helped boost occupancy 10.0% to 69.2% and grew ADR 4.9% to THB 3,226.

Thailand has been undergoing a strong recovery from recent political turbulences and severe flooding, as Bangkok, Phuket, Koh Samui, Pattaya and Chiang Mai illustrated growth in all three performance metrics.

“The increase in hotel performance was underlined by the growing numbers of visitors to the country as Thailand welcomed 22.3 million visitors in 2012,” said Elizabeth Randall-Winkle, managing director of STR Global.

Koh Samui achieved the highest ADR (THB 6,910) out of all Thai markets, due to a concentration of luxury hotels. A substantial occupancy growth of 27.1% helped fuel a RevPAR increase of 29.4% to THB 4,224.

This was accelerated by demand growth of 31.3%, while supply saw a comparatively moderate increase of 3.3%. Although Hua Hin/Cha Am was the only market to experience a decline in ADR (-2.2%), its RevPAR was sustained (5.0%) by an increase in occupancy of 7.3%.

Supply increases were most prominent in the country’s capital of Bangkok (+4.3%), where 2,993 rooms were opened in 2012. However, the capital still achieved the second highest demand increase (+15.6%) behind Koh Samui (+31.3%), followed by Chiang Mai (+14.3%), Hua Hin/Cha Am (+11.5%), Pattaya (+9.8%) and Phuket (+4.4%). After Koh Samui, Chiang Mai exhibited the strongest RevPAR growth (+19.3% to THB 1,721) and occupancy growth (+13.4%).

“Tourism in places like Chiang Mai, located in the northern mountainous part of Thailand, is not as popular of a location as Bangkok and other sought-after beach destinations,” Randall-Winkle said. “However, despite Chiang Mai having the lowest ADR (THB 2,825) of the key cities, it showed growth in all three performance metrics, illustrating promising demand for this market and type of destination.”

STR Global currently tracks hotel performance from more than 49,000 rooms across Thailand.