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Room rates drop as Thailand’s hotels feel the Covid pinch

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PHOTO: Braden Jarvis on Unsplash

The devastating economic effects of the Covid-19 crisis continue to make themselves felt as hotels are forced to reduce their rates significantly in an effort to lure guests. Speaking to the Bangkok Post, James Kaplan from asset investment and management company, Destination Capital says that, unlike the economic crash of 1997, hotel revenue took a hit at the height of the coronavirus outbreak, when a lack of tourists forced them to close their doors temporarily.

While Thailand appears to have been successful in suppressing, and containing, the virus, lingering uncertainty over when tourism and the overall economy might bounce back, coupled with the lack of an effective vaccine, means hotels are having to drop their prices. Kaplan predicts the number of international arrivals will not match 2019 levels until at least 2023.

The absence of a vaccine against Covid-19, added to strict quarantine requirements and struggling airlines, mean tourists are not confident about travelling, and, while the much-discussed travel bubbles may attract some, this will not be enough to provide airlines and the sector as a whole with the significant jump-start required.

Kaplan says his company hopes to have a portfolio of between 12 and 15 hotels within the Asia-Pacific region within 18 months. The idea is to have the properties renovated and rebranded, marketing them to capital investors in Thailand and elsewhere. Such an investment would mean these hotels could reopen, creating more jobs. He adds that Thailand is the primary focus, particularly properties in the tourist hotspots of Bangkok, Hua Hin, Phuket and Pattaya.

SOURCE: Bangkok Post

 

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3 Comments

3 Comments

  1. Toby Andrews

    Tuesday, July 28, 2020 at 11:09 am

    Destination Capital, no money of their own but use others money and take a cut, again have confidence in the hotel market.
    If hotels are such a good investment how about David Kaplan buying a few of his own.

    • Kevin Martyn

      Tuesday, July 28, 2020 at 11:28 am

      I really cannot see the 4/5 star Hotels around Thailand seeing any recovery in the 4qtr of 2020!

  2. james

    Tuesday, July 28, 2020 at 2:27 pm

    God rest their souls.

    I suppose it was reported in the news as it involved a falang and a monk.

    But there will also be 66 other people killed on the roads today according to the national statists.

    Driving tests need to be much harder than the current test which a ten-year-old kid could pass.

    The wearing of helmets should really be enforced for anyone on a motorbike or sidecar.

    When I drive here in Phuket I see 75% of people do not bother with a head-protection on motorcycles.

    But there is a further problem as you often see up to ten people sitting in the back of pickup trucks!

    In comparison in the UK there are approx 1700 road deaths per year, passing a driving test there is hard and hardly anyone passes the first time.

    I know we have a lot fewer motorcycles in the UK but the driving test here is far too easy.

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