Skip Ribbon Commands
Skip to main content

News Release


Continuing Hotel Development in Phuket

1,778 new rooms planned for completion in 2015

Phuket will continue to see a solid growth in new supply this year with 1,778 new rooms planned for completion by the year end. The growth in demand is expected to keep pace, and as a result, the market outlook remains positive, although challenging in the short term, according to JLL, a professional services firm specializing in real estate.

The total stock of branded hotels and resorts in Phuket is currently standing at some 47,000 rooms with 1,420 new rooms being added last year. An additional 1,780 and 1,750 rooms are scheduled for completion in 2015 and 2016, respectively. 

“Over 1,700 new rooms may sound significant, however we feel demand will absorb this new supply as the tourism industry in Phuket is likely to improve and expand over the next few years,” said Andrew Langdon, Executive Vice President at JLL’s Hotels and Hospitality Group. 

“Increased political stability should help attract more international visitors to Thailand’s key resort destinations including Phuket, although a softening in Russian visitation is being felt due to the depreciation of the Russian Rouble ” he explained.

Whilst Thailand suffered a 6.4% decline in international visitor arrivals from 26.5 million in 2013 to 24.8 million in 2014, Phuket was left unaffected, with international arrivals continuing to grow, though the growth rate was marginal at 0.3%. However, with a significant amount of new hotel supply and flat demand in 2014, the average hotel occupancy rate on the island declined by 5% from 73.1% in 2013 to 69% in 2014.

“The Phuket hotel market in 2014 was in a much better shape than expected, particularly when compared to Bangkok where occupancy fell by 13.2% and 15.1% in the four-star and five-star segments respectively,” said Mr. Langdon.
He added that adequate airport infrastructure and good international connectivity were among major factors that prevented Phuket’s tourism and hotel industry from a market slump in 2014 as many tourists were able to fly direct to Phuket without the need for a stopover in Bangkok where the image of political unrest affected visitation.

According to the Airports of Thailand (AOT) the number of domestic and international travellers who arrived at Phuket via the Phuket International Airport rose 0.5% in 2014.  AOT also revealed that the number of flights to Phuket in 2014 rose by 4.6% to 75,974, representing a total of 11,400,000 passenger movements. 

“The soon to be completed expansion of the Phuket International Airport should further contribute to increasing international visitors to the island,” said Mr. Langdon.

Major hotels planned for completion between 2015 and 2018

​HOTEL ​No. of Rooms​Completion
​Nikki Beach Hotel & Spa​174​2015
​Park Hyatt Phuket​85​2016
​Hilton Hotel Patong​300​2017
​Sheraton Phuket Kalim Beach​230​2018

Source: Hotels and Hospitality Group, JLL