Bangkok's luxury hotel industry is not in the doldrums

Capella, Four Seasons, Kempinski and Kimpton are just some of the luxury hotels opening in Bangkok in 2020. A strange situation at a time when tourism has collapsed. According to initial estimates, the Kingdom has seen the number of international visitors fall from nearly 40 million in 2019 to 6.7 million in 2020.
Sindhorn Kempinski Bangkok (Photo: DR)

On 18 December, the Four Seasons made its comeback at Bangkok. The group lost its former property in early 2015, when the Four Seasons Ratchadamri - in the heart of the metropolis' commercial district - became the Anantara Siam Bangkok Hotel & Spaowned by Thailand's Minor Hotel Group. Four Seasons immediately announced its ambition to return to Bangkok.

This is now a reality with the opening of a luxury property next to the Chao Praya River in the historic Charoen Krung district. The new Four Seasons boasts 299 rooms, six restaurants, bars and cafés, a fitness centre and event spaces are all part of the hotel's prestigious offering. The hotel also gives pride of place to young contemporary artists in a district that has become the new centre of urban culture in the Thai capital.

But it's not the only one to have opened its doors. The year 2020 saw the inauguration of almost a dozen luxury hotels. in the Asian metropolis. These inaugurations are totally out of step with the state of tourism in Thailand.

Entrance to the Four Seasons Hotel Bangkok seen from its gardens (Photo: DR)

A dozen hotels open in Bangkok in 2020

The closure of the country's borders due to the covid pandemic, followed by the high financial requirements set by the government to come to the country, resulted in a collapse in demand. From 39.8 million international tourists (including 745,000 from France), the Kingdom welcomed fewer than seven million last year.. And of this total, 6.69 million came to the country between January and March 2020, before the hermetic closure of the borders. From April to December, the country will have welcomed fewer than 9,000 extra visitors!

However, this situation has not prevented the inauguration of a series of luxury properties. In May, the Kempinski Sindhorn Hotel, the brand's second property in Bangkok. The hotel is set in a private garden and offers 285 rooms, four restaurants and bars, a spa and meeting facilities.

Just a few metres from the Kempinski, the new Kimpton Maa-Lai Bangkok. Affiliated to the IHG group, the property offers 362 rooms and suites as well as 131 hotel residence flats. Four restaurants, a fitness centre and gardens complete the offer.

October also saw the opening of the Capella Hotels and Resorts Bangkok along the Chao Praya River. The property offers 101 rooms, suites and villas, with prices starting at around 600 dollars a night. The American chain has taken on the services of a Michelin-starred French chef for its flagship restaurant, Côte, headed by Mauro Colagreco.

Slow return to normal 

But according to the General Manager of the Capella Bangkok to a journalist from the South China Morning Post, the hotel has so far succeeded in attracting a wealthy local clientele. Customers who can no longer travel to Europe or Japan.

It is in fact the local upper middle class that these luxury establishments rely on for the time being. The government offers substantial support measures to local tourists, in the form of discounts and subsidies for staying in hotels or visiting certain regions. This policy has its limits, however, as many Thais are facing economic difficulties.

That leaves the hope of reopening the country to tourism in 2021. The Kingdom has already significantly eased entry requirements into the country by no longer requiring proof of a bank account (minimum of $15,000) and by reinstating free visas. The mandatory 14-day quarantine in a hotel remains a major obstacle to recovery. But the arrival of the vaccine should help to normalise visitor movements.

Estimates point to seven to ten million international tourists in 2021before a very strong recovery in 2022. And the opportunity for business people and other visitors to benefit from an exceptional hotel offer... Especially as other openings are in the starting blocks this year!