Wyndham Hotels & Resorts remains upbeat on the prospects for Thai tourism, driven by increasing numbers of inbound tourists, but says hotels still need to adjust to higher costs.
Joon Aun Ooi, Asia-Pacific president of Wyndham Hotels & Resorts, said the industry's nationwide average occupancy rate is expected to be at 60% as of January this year, double the rate recorded last year due to the significant increase in arrivals.
Mr Ooi said that although the average occupancy rate remains below the rate recorded before the pandemic, the growth may signify a consistent demand for tourism investment, with a recovering performance across all properties.
For example, Wyndham Grand Nai Harn in Phuket reported the strongest revenue per available room and occupancy rate in the first quarter since its opening in 2019, thanks to a strong recovery in Russian and Chinese customers.
Last year, Wyndham signed contracts for 169 hotels and opened another 132 hotels across Asia-Pacific, resulting in 5% and 10% room growth in Southeast Asia and Greater China (Mainland China, Hong Kong and Taiwan), respectively.
Looking ahead, Mr Ooi said the overall tourism industry in Thailand should return to normal by next year at the earliest, driven by more Chinese arrivals.
Hotels still have to manage rising costs in terms of construction, materials and labour, and persistent interest rate hikes that incur higher debt for investment and operations.
Labour shortages have also resulted in longer construction periods, which turned into lost opportunities.
The company remains optimistic in tapping a wide range of customers across its six brands in Thailand.
Its latest properties, Ramada by Wyndham Bangkok Sukhumvit 11 and Ramada by Wyndham Bangkok Ten Ekamai Residences, are slated to open by the end of the second quarter, reaching a total of 22 properties in Thailand.
Mr Ooi said there is more demand from 'bleisure travel' which combines leisure and business during trips to its properties in Bangkok and Phuket. This segment helped to increase the company's occupancy rate.
To boost growth in this segment, Wyndham has launched a special campaign to attract bleisure travellers by providing them with a free room upgrade, along with a discount for stays of consecutive nights.
