Thailand can expect stronger demand from long-stay travellers as more visitors blend leisure with business trips, while Accor said the country posted the strongest performance among neighbouring countries hosting its hotels in the region last year.
Ianic Menard, vice-president of operations in Thailand, Laos, Cambodia and Myanmar, said the extended-stay market is a strategic pillar for Accor in Thailand this year as it sees opportunities to convert independent apartments into branded properties.
Mr Menard said hybrid lifestyles merging work and leisure have became more popular after the pandemic.
Travelling as a large family or multi-generation group also stood out as the fastest growing segment in Asia, particularly after the government's initiative to increase tourists' length of stays. This helped stimulate demand for long-stay properties.
Typically, these properties offer larger living spaces and more facilities than hotels, such as pantries and kitchens.
Because of long-term contracts, extended-stay properties also tend to gain a higher occupancy rate with slightly lower room prices.
He said rooms in extended-stay properties can also be offered at high rates for short-term stays during the high season to maximise revenue.
Likewise, owners can rely on long-term contracts, especially during the low season or difficult times like the pandemic, when extended stays outperformed the hotel market.
Of the 10 hotels signed last year in Thailand, two of them are in the extended-stay segment.
They are Pullman Living on Sukhumvit soi 16 slated for 2027 and Novotel Living near Don Mueang airport set for 2026.
Recently, it opened its first two extended-stay properties in Bangkok: Novotel Living Bangkok Sukhumvit Legacy in November last year, and TRIBE Living Bangkok Sukhumvit 39 in February.
At present, Accor operates 86 properties with over 19,000 rooms in Thailand.
Mr Menard said Thailand is a highly resilient market for Accor and posted the strongest performance last year among three neighbouring markets, namely Cambodia, Laos and Myanmar.
In 2023, hotels in prime locations in Bangkok and Phuket gained total revenue and gross operating profit exceeding the 2019 level.
In the first quarter of this year, the strongest markets for Thailand were Bangkok and Phuket, while those in Samui, Krabi, Pattaya and Hua Hin also posted a strong number of guests.
Mr Menard said despite higher airfares, rising living costs and elevated inflation around the globe, Thailand remains a preferred destination for foreign tourists based on quality experiences and reasonable costs.
To maintain the country in the top spot, all players in the industry need to work hand in hand to keep memorable experiences for tourists, while the government should provide attractive policies and develop infrastructure to help strengthen existing strong points like key attractions, nature and food, he said.