BANGKOK — A 4.5-billion-baht ($140 million) luxury hotel will open its doors this December on the former site of Peninsula Plaza, marking the end of an era for the iconic Ratchadamri Road shopping center that served Bangkok for over three decades before closing in 2022.
The 45-storey Grand Center Point Prestige Bangkok, featuring 509 rooms on a three-rai plot in Pathum Wan District, represents a major bet on Thailand’s tourism recovery as hotel operators report occupancy rates of 80-90% driven by surging demand from Asian, Chinese, European and Middle Eastern visitors.
Developer LH Mall & Hotel Co Ltd, a subsidiary of Land and Houses PCL, has accelerated the hotel’s opening from the first quarter of 2026 to December 1, 2025, citing strong booking momentum that has already filled 60-70% of December reservations at sister properties.
The project underscores Bangkok’s hotel market transformation, with room rates starting at 8,000-10,000 baht positioning the property in the luxury segment. Combined with the neighboring Grand Center Point Ratchadamri, the two hotels will offer over 1,000 rooms to capitalize on Thailand’s tourism boom.
“Q3 has significantly outperformed Q2 this year,” said Kitti Worabanphot, Managing Director of LH Mall & Hotel Co Ltd, pointing to increasingly independent Chinese travelers with higher purchasing power as a key growth driver.
Market Expansion & Supply Growth
Carlos Martinez, Director of Research and Real Estate Consulting at Knight Frank Chartered (Thailand) Co, Ltd, said seven new hotels with a total of 1,906 rooms have opened this year, ranging from luxury to upper midscale, such as the Grand Center Point Lumpini, Four Points by Sheraton, Aman Nai Lert, Queensland Hotel and The Quarter.
In addition, 12 more hotels with 3,283 rooms are scheduled to open in the second half of 2025, reflecting continued growth and increasing competition. Many of the new hotels are located in newly developed or revitalized urban areas, leading to greater geographical diversification of the Bangkok hotel market.
Domestic brands such as The Quarter and Queensland continue to expand aggressively in the mid to upscale segment, while international chains such as Radisson and Four Points are increasing their investments, a sign of long-term confidence in Bangkok’s market potential.
“The key question in the second half of the year is whether the market can absorb the more than 3,283 new rooms that will open by the end of the year. This will bring the total new supply to over 5,100 rooms in 2025, the fastest growth since COVID,” said Carlos.
Tourism Demand Challenges
“The biggest burden is the sharp decline in Chinese tourists, which have fallen by 35%. Although China remains the most important market for Thailand, the slowdown has hit mid-market hotels and those that rely on group travel the hardest.”
Carlos emphasized that in this context, the growth in revenue per available room is driven by occupancy, especially in peak months such as November and December, which benefit from the end-of-year holidays and demand from the MICE segment. However, midscale hotels are facing tough competition from new providers, which limits their pricing power.
In contrast, the luxury segment remains more resilient and is supported by long-haul travelers and high-income tourists from the region. Although price growth is modest and competition in the upscale market is increasing, Bangkok still offers a price advantage compared to Singapore, Hong Kong and Tokyo. This could attract experiential travelers seeking value at competitive prices.
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