Thailand’s luxury hotels saw remarkable ADR growth in 2024, surpassing London and Singapore in percentage increases, highlighting strong market expansion.

Thailand’s luxury hotel sector has seen impressive growth in 2024, with average daily rates (ADR) increasing by 5.3% year-on-year and a notable 42.7% rise compared to 2019, according to STR, a global leader in hospitality industry research. This growth outpaced key international markets such as London and Singapore, which recorded ADR increases of 34% and 37%, respectively.

Thailand’s Competitive Luxury Hotel Market

Despite London and Singapore’s higher ADRs ($604 and $427, respectively) compared to Bangkok’s $200, Thailand’s luxury hotel sector continues to show strong potential. Jesper Palmqvist, STR’s vice president for Asia-Pacific, pointed out that Bangkok’s competitive pricing allows it to attract a broader range of international travelers while still experiencing consistent revenue growth.

Tourist Cities Show Positive Occupancy Growth

Thailand’s hotel industry is not just benefiting from increasing ADRs—occupancy rates in seven major tourist destinations have also shown steady growth throughout 2024. STR reports that Chiang Mai recorded the highest year-on-year occupancy growth at 15.1%, followed by:

• Krabi (13.2%)
• Samui (11.9%)
• Hua Hin (7.7%)
• Bangkok (6.5%)
• Pattaya (4.7%)
• Phuket (4.4%)

These figures signal a strong recovery for Thailand’s tourism industry, fueled by increasing international arrivals and a growing preference for high-end accommodations.

ADR Growth by Destination

While the overall ADR increase was 5.3% across the country, specific destinations saw higher-than-average growth, including:

• Samui (9.2%)
• Phuket (7.8%)
• Bangkok (7.4%)
• Pattaya (6.3%)
• Krabi (5.1%)
• Chiang Mai (3%)

The only exception was Hua Hin, where ADR declined by 1.3% in 2024. However, the city still experienced positive occupancy growth, indicating a steady influx of visitors.

Future Trends: Growth in the Luxury Segment

Looking ahead, Palmqvist predicts that ADR growth will gradually slow in the coming years, a trend seen globally. However, Thailand’s hotel market is expected to continue expanding, with luxury hotels playing an even larger role.

Currently, around 58% of new hotel developments in Thailand are expected to be luxury properties, indicating a strong shift toward high-end accommodations that cater to affluent travelers and international tourists.

Optimism for 2025 and Beyond

Despite expectations of a slowdown in ADR growth, STR remains optimistic about Thailand’s hotel market performance in 2025. The country’s strong economy and sustained demand from international tourists continue to support its hospitality industry. STR’s research indicates that Thai hotels are likely to achieve higher occupancy rates in Q1 2025 compared to the same period in 2024.

With Thailand’s competitive pricing, expanding luxury segment, and increasing global recognition as a premier travel destination, the country’s hotel industry is set for continued success in the years ahead.

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