Thai hotel sector faces rising closures after widespread losses

Thai hotel closures rose 42% in the first nine months of 2026 after 51% of operators posted losses in 2025, with KResearch warning of further pressure in 2027.

Thailand’s hotel and accommodation sector is facing mounting pressure from weak tourism demand, rising competition and high operating costs, with business closures accelerating after more than half of operators reported losses last year.

KASIKORN RESEARCH CENTER (KResearch) said 148 hotel and accommodation businesses registered their closure during the first nine months of 2026, up 42% from the same period a year earlier.

Meanwhile, about 51% of operators recorded losses in 2025, with smaller businesses the most vulnerable. Around 54% of small operators were loss-making, while 42% had accumulated losses for three consecutive years from 2023 to 2025. Overall, 38% of hotel and accommodation operators recorded accumulated losses throughout the three-year period.

KResearch warned that the outlook for 2027 remained highly uncertain as the tourism recovery stays uneven, competition intensifies and operating costs face further upward pressure.

Hotel market grows, but recovery remains uneven
Thailand’s hotel and accommodation market is expected to be worth about THB1.1 trillion in 2026, up 2.6% from 2025.

Accommodation accounts for about 77% of sector revenue, with the remaining 23% coming from areas including catering, meetings, seminars, food and beverages.

The industry comprises about 15,000 operators, more than 98% of them small and medium-sized businesses, and employs around 430,000 people. Its market value is equivalent to about 5.7% of Thailand’s gross domestic product at current prices, according to KResearch.

Despite overall revenue growth supported by international meetings and conferences and continued domestic travel, the recovery has not been evenly distributed.

New business registrations also slowed. A total of 779 hotel and accommodation businesses were established during the first nine months, down 31.2% year on year, although the figure remained above the comparable level in 2024.

Source: TheNation 

#Bangkok tops list of trending Airbnb destinations this year

Thailand’s capital topped a list of trending Airbnb destinations in 2022. Based on searches made in the first to third quarters of the year for check-ins, Bangkok was the #1 most trending destination for Airbnb guests across the globe.

The entire list is as follows: 

Bangkok, Thailand

Sydney, Australia

Málaga, Spain

Seoul, South Korea

Melbourne, Australia

Itapema, Brazil

Angra dos Reis, Brazil

Capão da Canoa, Brazil

Auckland, New Zealand

Brisbane, Australia

In searches for future check-ins in 2023, Bangkok was #5, Nation Thailand reported. The list of top trending travels spots for Airbnb in 2023 were:

Málaga, Spain

Sydney, Australia

Melbourne, Australia

Auckland, New Zealand

Bangkok, Thailand

Airbnb’s General Manager for Southeast Asia, India, Hong Kong, and Taiwan, Amanpreet Bajaj, said…

“The reopening of more countries this year also unlocked pent-up demand from international travellers eager to reconnect with loved ones or visit their favourite destinations once more.”

Earlier this year, there was a major jump in searches for Airbnb accommodation in Thailand, according to Airbnb data. The data shows that between January and March this year, the number of searches for Airbnb accommodation in the kingdom shot up by 180% compared to the same time frame last year.

Both Thai and international travellers especially searched for Airbnb accommodations in hotspots including Bangkok, Phuket, Pattaya, Chiang Mai, and Koh Samui.

In September, however, Airbnb said tourists in Thailand were opting for ‘off-the-beaten-track’ destinations, benefiting the environment and local economies.

According to Airbnb, more tourists are venturing out of these hubs and into “lesser-known” destinations such as Koh Lanta, Trat, Pai and Cha-Am.

But based on the recent list of trending Airbnb destinations, it appears that Bangkok is still at the top.

Between January 1 and December 20, Thailand welcomed 10.9 million tourists from around the world, the governor said this morning. 

Tourist arrivals in Thailand could hit the 11 million mark before the year is through, according to the Governor of the Tourism Authority of Thailand (TAT) Yuthasak Supaporn.

With High Season in full swing, Yuthasak said he expects tourist arrivals to reach 11.5 million before the year’s end.

Source - The Thaiger

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