C9 Hotelworks Releases Bangkok Serviced Apartment Market Update

According to C9 Hotelworks new Bangkok Serviced Apartment Market Update 2025 report, operators are seeing a surge in short-term demand, despite a rising influx of expatriates.

Bangkok’s serviced apartment market has expanded at a 6.2% compound annual growth rate (CAGR) over the past decade, driven by the expansion of international brands such as The Ascott Limited, Marriott, and IHG, as well as domestic operators including Chatrium and Centre Point. The market now comprises 21,509 keys across 120 properties, with an additional 2,319 keys across 11 developments in the pipeline.

Historically, long-stay demand for serviced apartments in the Sukhumvit area was driven by Japanese expatriates on extended work assignments in Bangkok and the Eastern Economic Corridor. However, as companies have reduced housing allowances for expatriates, demand from this segment has declined. As a result, the market has shifted from annual contracts to shorter long-term stays, typically from one to six months, supported by guests seeking interim housing during relocation, digital nomads, and medical tourists.

Currently, demand is primarily driven by short-stay guests staying for less than a month, including travelers from Japan, China, South Korea, the Middle East, India, and Europe. This segment mainly consists of families who favor serviced apartments for their larger living spaces and in-room amenities, such as kitchenettes and washing machines, over traditional hotel accommodations.

Commercially, internationally branded upscale to luxury serviced apartments are trading above pre-pandemic levels, with Revenue per Available Room (RevPAR) increasing by 3.4% from THB3,105 in 2019 to THB3,211 in 2024. This growth has been driven by a 9.7% rise in Average Daily Rate (ADR). However, occupancy has declined by 4.7 percentage points over the same period, reaching 77.5% in 2024, due to a shift towards rate-driven commercial strategies and an increase in serviced apartment supply, particularly in the Sukhumvit area.

In Bangkok, rental rates are highly sensitive to location and brand positioning, with premium pricing commanded by internationally branded serviced apartments in central areas such as Siam/Ratchadamri and Sukhumvit. Average monthly rental rates for one-bedroom units range from THB50,000 for midscale serviced apartment products to THB94,500 for luxury serviced apartments.

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