Premium hotels are experiencing strong growth, surpassing luxury hotels, driving occupancy rates to 78.7%, prompting IHG to add 39 new hotels.

Tourism remains strong! Global RevPAR surged 4.4%, benefiting from a 23% increase in Chinese tourists visiting Thailand. Global trends are driving the 'premium' segment to lead, with occupancy rates reaching 78.7%, surpassing the luxury segment. This reflects demand growing four times faster than supply. IHG is preparing to open 39 new hotels across Thailand, diversifying its global portfolio and indicating that geopolitical conflicts in the Middle East will only have a short-term impact on its business.

June 10, 2569 – Vivek Balla, Managing Director, Southeast Asia and Korea, IHG Hotels & Resorts. It has been revealed that the overall international tourism industry continues to show strong growth signals, with cumulative data from the beginning of the year until March 2026 from STR (STR Country Data, YTD March 2026) indicating that: The average revenue per available room, or RevPAR, for hotels worldwide increased by 4.4%, driven by growth across all types of stays.

Positive signs for global tourism: China and Thailand continue to surge.

Delving deeper into the Asian region, we find that the market still has strong momentum, particularly based on statistics from Thailand and China, as follows:

• Thailand's RevPAR increased by 2.9%.
• Tourist arrivals from China showed remarkable growth of 23%.
• Domestic tourism demand in Thailand increased by 2%.

Furthermore, the report identifies the top 10 most important markets that serve as sources of tourists, comprising China, Thailand, Japan, the United States, Russia, the United Kingdom, India, South Korea, Germany, and Singapore.

Decoding Travel Behavior: 'Premium Lifestyle' Surpasses Luxury

Modern consumer behavior is driving a major transformation in the hotel industry. According to economic analysis by Oxford Economics, the target household segment, driven by behavior and lifestyle, is projected to grow rapidly and reach as many as 670 million households by 2035. This is because modern travelers prioritize lifestyle choices in their accommodation, prefer contemporary design, and value vibrant city locations.

These changes align with the CoStar Hospitality National Report Thailand for May 2026, which clearly indicates that hotels in the "premium" segment, encompassing upscale and upper midscale levels, have become the best-performing segment in terms of occupancy rates. They effectively bridge the gap between mainstream and luxury hotels. Furthermore, demand for the premium segment has significantly outpaced the number of new rooms opened since the beginning of the year, as illustrated by the following figures:

• Supply side: The number of hotel rooms increased by only 0.8% YTD.
• Demand side: Demand for accommodation has grown by a high of 4.5% YTD.

Ruby

When considering occupancy rate statistics in Thailand, broken down by segment and time period, an interesting growth structure emerges:

• Over the past 12 months:
  • Premium group: 69.6% (highest of all groups)
  • Luxury & Lifestyle group: 66.8%
  • Mainstream group: 64.4%
• From the beginning of the year until May (May Year-To-Date):
  • Premium segment: 78.7% (significantly growing and remaining the highest).
  • Luxury & Lifestyle group: 76.1%
  • Mainstream group: 72.4%

The main factor driving the premium segment's superior growth compared to the luxury segment stems from the expansion of the global middle class, particularly in China. This large customer base possesses significant purchasing power but exhibits "experience-driven" behavior, prioritizing unique experiences, coupled with "cost-conscious" consideration of price and value. They seek distinctive experiences, local connections, and carefully curated accommodations at more accessible price points, with the average room rate exceeding US$100 per night.

Furthermore, premium hotels cater to the "Blended Travel" trend, combining work and leisure travel, by designing rooms with clearly defined zones for work, sleeping, and relaxation. They also respond to global megatrends in wellness and longevity, such as focusing on sleep quality and authentic healthy cuisine.

IHG doubles its expansion, using premium products as the spearhead to penetrate the Thai market.

Vivek also revealed its first-quarter results, stating that global RevPAR increased by 4.4% and that the growth momentum is expected to continue into the second quarter. In Thailand, the premium market performed best, reflected in the year-to-date occupancy rate which soared to 78.7%.

"Today's middle-class travelers don't just want ordinary hotels; they are experience-driven and value-for-money." Vivek Ballard said:

Currently, IHG operates 42 hotels in Thailand (covering 11 brands), divided into Mainstream (50%), Luxury & Lifestyle (40%), Premium (5%), and Suites (5%). However, to meet market growth expectations, the company plans to almost double the number of hotels in Thailand, with 39 new hotels in its pipeline. Of these, approximately 41%, or 16 hotels, will be Mainstream.

The following are some interesting details regarding IHG's brand growth strategy in Thailand and globally:

• voco Hotels The brand, focused on rapid growth through the conversion of independent hotels, aims to open 200 locations worldwide within 10 years of its launch in 2021. In Thailand, the first location has already been launched, voco Bangkok Surawong (rebranded from Tawanna Hotel), and additional locations have been signed for voco Phuket Patong and voco Phuket Bang Tao, scheduled to open in the next 2-3 years.
• Crowne Plaza Aiming to cater to the Blended Travel trend, the hotel designs rooms with three zones (work, sleep, and relaxation), and is preparing to open two new hotels in Bangkok within the next 12-18 months: Crowne Plaza Bangkok Rama 9 and Crowne Plaza Bangkok Grand Sukhumvit. These will be the largest Crowne Plaza hotels in Thailand, with more than 500 rooms.
• Ruby Hotels (Urban Lifestyle) The urban-style hotel brand, currently with 40 locations in Europe and the US, aims to expand to more than 120 locations within the next 10 years. Plans in Thailand are currently in the early stages of negotiations, with interest in opening locations in Bangkok, Phuket Town, and Pattaya.
• Noted Collection The strategy focuses on rebranding independent hotels while maintaining their original identity but strengthening them with IHG's support systems. The company sees growth opportunities in key tourist cities including Bangkok, Phuket, Koh Samui, Krabi, Pattaya, and Chiang Mai.

voco Phuket Bangtao

Looking beyond geopolitical considerations, confidence remains in Thailand's long-term potential.

Responding to a question about the conflict in the Middle East, Vivek Ballah acknowledged that it has had some impact on his business in certain markets that heavily rely on Middle Eastern tourists, resulting in a decrease in the number of these tourists visiting Thailand.

However, IHG employs a risk management strategy through diversification, given its diverse global business portfolio. Strong performance in other regions helps to support the overall picture, resulting in a high level of business resilience.

"The company views this as only a short-term impact, and we remain fully confident in Thailand's medium- and long-term potential, clearly reflected in the large number of hotels in our pipeline awaiting opening." Vivek Balla reiterated his confidence.

Currently, IHG continues to prioritize customer care policies, providing support to guests who wish to change their bookings while maintaining the safety of all employees and guests as the top priority. This is coupled with maintaining a balanced business approach by focusing on other promising international markets such as China and India, as well as sustainable growth in the domestic market.

Crowne Plaza Grand Bangkok Sukhumvit

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