Report

Pattaya Hotel Market Trends and Outlook

Pattaya, a destination that has long been known for nightlife and an inexpensive holiday, is transforming with an abundance of EEC infrastructure projects, expansion of nearby industrial estates, mixed use developments with top-tier international branded hotels, lifestyle attractions and amenities, as well as year-round festivals and events.

The continued rapid urbanization and industrial advancement in the eastern region have expanded corporate demand contribution and diversified across business segments and source markets.

How is the recovery pattern in Pattaya now? What is the market outlook for the modern-day Pattaya?

The latest study by Horwath HTL analyses Pattaya’s hotel market performance and forecasts its near-term recovery coupled with a growth trajectory over subsequent years.

Current Situation
In 2022, travel restrictions eased significantly, removing mandatory PCR tests and quarantine requirements for vaccinated travelers, and allowing unvaccinated travelers to bypass quarantine with a pre-departure test. This relaxation is expected to encourage more international visitors to return.

Seasonality
Pattaya experiences a high season from November to February and in April, boosted by the Songkran festival and Chinese New Year. The low season spans June to October, with March and May as shoulder months. The city is a popular weekend getaway, leading to price and demand fluctuations between weekdays and weekends.

Infrastructure Developments
Pattaya benefits from significant infrastructure projects under the Eastern Economic Corridor (EEC) initiative, aimed at transforming the region into a technological, manufacturing, and service hub.

Key projects include:

High-Speed Rail Linking 3 Airports: Expected to facilitate 110 million passengers annually between Don Mueang, Suvarnabhumi, and U-Tapao airports.

U-Tapao International Airport Expansion: Increasing capacity from 3 to 16 million passengers annually.

Laem Chabang Port Phase 3: Enhancing goods connectivity to neighboring countries.

Map Ta Phut Port Phase 3: Improving logistics and reducing congestion.

Demand Generators
Pattaya’s appeal is broadening with new attractions like the Aquatique mega project, which will feature five top-tier international branded hotels, shopping, and entertainment facilities. The city’s tourism strategy includes upgrading existing attractions such as Na Kluea and Koh Lan Island, and maintaining a vibrant calendar of events to attract both domestic and international tourists.

Hotel Market Performance
The overall market occupancy in Pattaya was high in the pre-pandemic years, with hotels generally focusing on volume strategies. The pandemic caused a dramatic drop in occupancy and Average Daily Rate (ADR) in 2020 and 2021.

Segment Analysis

Top-Tier Segment (Above THB 3,500): Saw a significant drop in occupancy due to the entry of newly renovated hotels. However, strong weekend demand from Bangkok mitigated rate reductions during the pandemic.

Upscale Segment (THB 2,000 – 3,500): Maintained steady occupancy growth pre-pandemic but saw substantial rate reductions during the pandemic due to loss of corporate and MICE demand.

Midscale Segment (THB 1,000 – 2,000): Led the market in occupancy prior to the pandemic but faced challenges with new supply and rate competition during the pandemic.

Outlook
The Pattaya hotel market is expected to see demand and ADR growth in 2022 with the easing of travel restrictions. Gradual recovery is anticipated from 2023 to 2025, driven by infrastructure developments and new hotel openings. However, full occupancy recovery is not expected until beyond 2026 due to the influx of new supply. The ADR recovery will be prolonged due to increased midmarket supply and competition from other destinations.