Phuket to see 18 new hotels over the next two years

These will add over 4,100 new keys to the market.

Phuket’s hotel market demonstrated a robust recovery in 2024 according to Knight Frank, with occupancy rates climbing to 79%, up from 73% in 2023. The high season (January–April) reached a peak of 84%, while November and December saw particularly strong performance at 81% and 91%, respectively.

Even during the traditionally slower months of July–September, occupancy remained resilient, holding steady above 75%.

Here’s more from Knight Frank:

Average Room Rates (ARR) surged to a record high of 5,481 THB, reflecting a 10% year-on-year increase. This growth was primarily driven by the luxury and upscale segments, which continue to command premium pricing. In contrast, midscale and economy hotels experienced more moderate gains, highlighting a growing segmentation between market tiers.

Supply remained limited in 2024, with only three new openings: Radisson Red Phuket Patong Beach (390 keys, upscale), Homa Phuket Cherngtalay (423 keys, midscale), and Blue Monkey Hub (71 keys, midscale), adding a total of 884 keys and bringing Phuket’s total room count to 45,299.

Looking ahead, the pipeline remains strong, with 18 new hotels set to launch over the next two years, adding more than 4,100 keys. This represents a 9.1% increase in total supply, underscoring sustained investor confidence in Phuket’s long-term growth prospects. The influx of new developments, particularly in the luxury and upper-upscale segments, is expected to further elevate the island’s hospitality offerings and cater to rising international demand.