Luxury and mid-range hotels in Pattaya upgrade services to meet growing demand from wellness tourists and workation travelers. (Photo by Jetsada Homklin) PATTAYA, Thailand – The Thai hotel industry is buzzing with renewed energy in 2025, with occupancy rates rising and average room prices climbing—key indicators that reflect the tourism sector’s pivotal role in driving the country’s economic growth. As one of Thailand’s top tourist destinations, Pattaya’s hotel business is showing promising signs of recovery, supported by increasing visitor numbers and evolving traveler demands. According to SCB Economic Intelligence Center (EIC), Thailand’s overall hotel occupancy rate is projected to reach around 75% this year, fueled largely by domestic travelers taking advantage of government tourism stimulus programs such as the ongoing “Thai Tourism Co-Payment” scheme running from July to October 2025. Meanwhile, international tourism is gradually rebounding toward pre-pandemic levels, especially with a surge in high-potential tourists like Russians, whose extended 90-day visa stays are boosting local demand. Average room rates across Thailand are expected to rise about 5% compared to last year. This price growth is largely attributed to upgraded services and renovations, particularly in four-star and above hotels that are adapting to current trends such as wellness tourism and workation lifestyles. Enhanced marketing promotions and higher booking volumes further support these increases. Pattaya, benefiting from its status as a key leisure hub, has seen significant hotel investment and expansion. The total hotel supply nationwide is estimated at 80,000 rooms this year, up 7%, with new luxury properties entering the market and pushing average rates above 4,000 baht per night. This diversification caters to a broad spectrum of tourists—from budget travelers to those seeking premium experiences. Real estate consultancy JLL forecasts Thailand’s hotel transaction volume to exceed 13 billion baht in 2025, with Bangkok remaining the hotspot for investors. However, Pattaya’s dynamic tourism scene and ongoing infrastructure improvements make it a strong contender for further growth. JLL also notes stable performance in the luxury hotel segment and steady improvements among mid-range and budget hotels, reflecting evolving traveler preferences. Looking ahead to the second half of 2025, the hotel and property sectors in tourist cities like Pattaya are expected to gain additional momentum from government policies and visa relaxations that encourage longer stays and greater spending. To remain competitive, hoteliers are focusing on innovation, service quality, and sustainability—aligning with new European Union regulations set to take effect by 2026 that will impact hotel operations and market access. Overall, Pattaya’s hotel industry is riding a wave of positive developments, positioning itself to capitalize on Thailand’s growing and diversifying tourism market while adapting to new challenges and opportunities on the horizon.