Hotel investment in the Asia-Pacific region decreased by 23% in the first half of 2025, but Thailand bucked the trend and showed strong growth.
Bangkok continues to dominate the Thai hotel market, with the city leading the way in securing the largest deals. The city's resilience is evident, as it manages to attract significant investment despite a decline of over 6% in foreign tourist numbers during the first seven months of the year.
A new wave of investor groups, including private equity firms and high-net-worth individuals (HNWIs), are becoming increasingly active in the Thai hotel market. This surge in interest is fueled by the positive long-term outlook for the sector, driven by the continued recovery in regional tourism.
Foreign tourist arrivals in the first quarter of this year saw a 12% increase, pushing average revenue per room and occupancy rates in key city centres close to or above pre-COVID-19 levels. This growth is reflected in Bangkok's average daily room rate, which hit a new record high despite the decline in tourist numbers.
These ongoing deals are expected to boost the full-year regional investment total to approximately $12,800 million, representing an increase of around 5% from the previous year. Capital from HNWIs saw a significant increase of 54% year-on-year in the first six months of the year.
Pimpanga Yomchinda, JLL's Executive Vice President of Investment Sales for Asia-Pacific, commented on the market's attractiveness, stating that the Thai market remains highly liquid and appealing to investors.
Looking ahead, the second half of 2025 is expected to be a critical period for strategic investors and private funds in the Thai hotel market. The market's enduring potential is underscored by the ongoing influx of investment, with the investment group Blackstone making the largest number of hotel investments in Thailand during the first half of 2025.
In conclusion, the Thai hotel market continues to thrive, demonstrating its resilience and potential for continued growth amidst the ongoing recovery in regional tourism.
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