Hotel demand in Thailand is shooting through the roof in 2025, with Pattaya leading the way. This growth is underpinned by rising occupancy rates, from both inbound and domestic visitors, and supported by continued infrastructure and hotel developments. The growing popularity of Pattaya as a leading leisure destination and constantly changing traveler demands for luxury and wellness moments has lured numerous investments, maintaining the vibrancy of the city’s hotel market. Increased support from the government and infrastructure developments also continue to place Pattaya at the heart of Thailand’s tourism recovery, while solidifying its role as a leader in the growth of the nation’s burgeoning tourism and hospitality sector.

The Thai hotel sector is booming in 2025 heading into a sunlit hospitality future on the back of domestic and international visitor growth. Increasing occupancy and surging average room prices are pointing to a strong recovery for the sector. While eastern CAR has a long way to recover from the impact of the global pandemic, the tourism industry is bouncing back on its feet—with spate of demand in hotel, investment, and the changing needs of travelers.

The popular Thailand tourist destination, sex city Pattaya, is perhaps one of the most vivid examples. A dynamic center for local and international” travelers, the hotel industry has leveraged the boom of tourists for changes in travel patterns, enhancements in the infrastructure and continuous growing demand.

Thailand’s Hotel Market Rebounds with Rising Occupancy Rates

According to data from the SCB Economic Intelligence Center (EIC), Thailand’s overall hotel occupancy rate is projected to reach approximately 75% in 2025. This represents a significant improvement over the previous years and marks a steady recovery as both domestic and international travel rebounds. The surge in domestic travelers is largely attributed to government initiatives aimed at stimulating the tourism sector, such as the “Thai Tourism Co-Payment” scheme, which runs from July to October 2025. This program encourages local travel by offering subsidies to Thai citizens, further boosting hotel demand across the country.

The increase in international tourist arrivals is also driving occupancy growth. Notably, markets like Russia are contributing to Thailand’s recovery, with tourists from these regions taking advantage of extended 90-day visa stays. This has translated into greater demand, particularly in key tourist cities such as Pattaya, where hotels are seeing both high occupancy and an increase in average booking rates.

Rising Room Rates Reflect Quality Upgrades and Market Dynamics

As the hotel market rebounds, average room prices across Thailand are expected to increase by 5% in 2025 compared to the previous year. The rise in room rates can be attributed to a variety of factors, including enhanced service offerings, renovations, and a general uplift in the quality of hotel accommodations. Hotels across the country, especially those in the four-star and above categories, are aligning with the latest travel trends such as wellness tourism, luxury experiences, and workations (work + vacation). These trends have prompted hotels to invest in upgrading their facilities and services, ensuring they meet the evolving needs of travelers seeking both relaxation and productivity.

Pattaya is no exception to this trend, where luxury properties are pushing the average room rates above 4,000 baht per night. The city’s hotel market continues to cater to a wide spectrum of tourists, from budget travelers to those seeking high-end experiences. Hotels in the city have also been introducing exclusive packages, wellness offerings, and premium experiences to attract more affluent travelers and diversify their customer base.

Pattaya: A Hotspot for Investment and Development

Pattaya’s hotel industry is seeing significant investment and expansion, as the city’s vibrant tourism scene continues to thrive. The total hotel supply in Thailand is expected to reach around 80,000 rooms in 2025, with a 7% increase from the previous year. This growth is driven by the influx of new luxury hotels and resorts entering the market, catering to both international tourists and affluent domestic travelers. Notable investments in Pattaya’s hospitality sector reflect confidence in the city’s tourism potential, with high-end properties and boutique hotels now offering more sophisticated and diversified options for visitors.

Real estate consultancy JLL forecasts that the hotel transaction volume in Thailand will exceed 13 billion baht in 2025, with Bangkok remaining the most attractive location for investors. However, Pattaya is positioning itself as a strong contender, with its ongoing infrastructure improvements, increased foreign investments, and a growing demand for diverse hotel offerings. This expansion is not only limited to luxury properties but also includes mid-range and budget hotels that are increasingly reflecting the preferences of a new generation of travelers who seek quality and affordability.

Government Policies and Infrastructure Boost Pattaya’s Potential

As Thailand continues to push forward with its tourism recovery, the government is playing a crucial role in driving further growth in cities like Pattaya. Various policy measures, including visa relaxations and promotions aimed at encouraging longer stays, are set to benefit the hotel and property sectors. These initiatives are expected to foster higher spending and greater length-of-stay, which will directly impact hotel revenues across the country.

In addition, Pattaya’s city infrastructure continues to evolve, with substantial investments in improving transport connectivity, leisure facilities, and cultural attractions. The expansion of local amenities, including dining, shopping, and entertainment options, makes Pattaya an even more attractive destination for tourists. This growing demand from international and domestic tourists, paired with strong government support, is set to propel Pattaya’s hotel market even further in the second half of 2025.

Sustainability and Innovation: A Key Focus for Hotel Operators

As the Thai hotel industry experiences growth, hoteliers are also focusing on innovation, service quality, and sustainability to stay competitive in an increasingly crowded market. New European Union regulations, set to take effect by 2026, will impact hotel operations and market access. These regulations, which emphasize sustainability practices, are already driving change in the industry as hotel operators in Thailand, including those in Pattaya, adjust their operations to align with global standards.

To meet the rising demand for eco-friendly travel options, many hotels are implementing green technologies, reducing their carbon footprints, and promoting sustainable tourism practices. This shift towards sustainability not only caters to a growing segment of environmentally conscious travelers but also positions hotels in Pattaya and across Thailand to maintain a competitive edge as the global tourism market evolves.

A Bright Future for Pattaya’s Hotel Industry

The outlook for Pattaya’s hotel industry remains strong as the city continues to recover and diversify its tourism offerings. With an expanding hotel supply, rising occupancy rates, and increasing room prices, Pattaya is on track to capitalize on Thailand’s growing tourism market. The ongoing efforts of hoteliers to enhance service quality, invest in sustainability, and adapt to traveler trends ensure that the city’s hospitality sector will remain dynamic and attractive to both domestic and international visitors.

Hotels in Thailand (2025) Thailand’s hospitality industry has thrived, and Pattaya has become the leader in terms of increased demand and investments. Rising occupancy, a higher number of domestic and international tourists and improved infrastructure has contributed to the growth, placing Pattaya at the forefront of Thailand’s tourism recovery and continued success in the hotel market.

As government policies further support the tourism sector, and infrastructure improvements continue to enhance the overall experience for tourists, Pattaya’s hotel market is poised for continued success. The combination of expanding investments, evolving traveler preferences, and a strong commitment to sustainability positions Pattaya as one of Thailand’s most promising destinations for the years to come.

Pattaya’s Role in Thailand’s Tourism Growth

PATTAYA is one of the main contributors to the Thai hospitality industry in 2025 as it bounces back and prospers following the downturn in the wake of the global economic crisis. With more and more demand creating new hotel properties and constant new tourism inovations, Pattaya is now more appealing than ever to a wide variety of travelers. Through value added services, sustainable development and adapting to the demands of the 21st century tourist, Pattaya is in prime position to do so and to be a positive contributor to Thailand’s continued prosperity. With the tourism industry on the rise, Pattaya is set to keep shaping up Thailand’s hotel industry.