RevPAR at Hotels in Bangkok Down 31.2% in Q1 2014

[HD video below] According to data from STR Global, hotels in Bangkok reported significant performance decreases during Q1 2014, affecting Thailand’s overall performance.

In the first quarter, occupancy fell 30.7% to 55.2% (compared to 79.7% in Q1 2013); RevPAR dropped 31.2% to THB1,778.42; and ADR fell by 0.6% to THB3,221.60. Demand in the market also reported a significant decrease, falling 29.3%.

“The hotel industry in Bangkok has taken a hit as a result of the political unrest,” said Elizabeth Winkle, managing director of STR Global. “2013 was a good year for hotels in Bangkok; however, 2014 is off to a rough start for the market. In February and March, Bangkok reported the lowest occupancy figures since August 2010. The greatest concern is the uncertainty of how long the conflict will last.”

Contrary to Bangkok, major resort locations in Thailand experienced a slight fall in occupancy due to increased rates to compensate for the negative trend. This resulted in a positive RevPAR performance in these markets.

Resort markets, such as Koh Samui and Phuket, traditionally command higher rates than Bangkok. The recent unrest has increased the gap even further. Rates in Koh Samui in Q1 2014 were nearly three times higher than in Bangkok.

Overall, Thailand’s performance in Q1 has been dampened by Bangkok, as demand fell 16.6%, and the country reported the lowest occupancy levels (65.7%) of any first quarter since 2009.

This negative performance is off the back of Thailand’s positive performance in 2013, where occupancy (+6.3%) and ADR (+6.5%) grew almost at the same pace. This resulted in double-digit growth in RevPAR for the third year in a row to THB2,564.59 (+13.2%),exceeding pre-recession peaks in this measure for the first time.

Exclusive Interview with RVP/GM of Four Seasons Hotel Bangkok

This exclusive HD video interview with Mr. Vincent Hoogewijs, Regional Vice President and General Manager of the Four Seasons Hotel Bangkok, took place on 2 May 2014. In this interview you will learn how the hotel has been affected by the recent political turmoil in the capital city, what it has all meant to the hotel's occupancy rates, which markets have been affected the most, and which the least, and where the hotel is hoping to finish the year, plus much, much more.

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