Phuket is moving from fast recovery to a more selective market. Thailand received 3% fewer foreign visitors in January–August 2026, and Phuket’s upscale hotels saw occupancy fall from 84% to 80%. At the same time, about 3,440 new hotel rooms are on the way. Property demand remains strong for rentals, but is concentrated in a few areas led by Choeng Thale.
What are the key numbers?
| Indicator | 2026 figure | Change | Period |
|---|---|---|---|
| Foreign arrivals to Thailand | 20.81 million | −3.0% | Jan–Aug 2026 |
| Phuket upscale & luxury hotel occupancy | 80% | from 84.1% | H1 2026 |
| Average daily room rate | THB 6,820 | −4% | H1 2026 |
| Revenue per available room | THB 5,456 | −8.7% | H1 2026 |
| Hotel rooms under construction | 3,440 | about +7% of supply | Opening 2026–2028 |
| Median monthly rent asked | THB 35,000 | from THB 33,000 | Dec 2025–May 2026 |
Why are hotel results weaker?
Phuket’s luxury and upscale hotels hosted 6.04 million guests in the first half of 2026, 2.7% fewer than a year earlier. Industry reports link this to fewer long-haul visitors from April, tension in the Middle East and higher airfares. Hotels have mostly protected their room rates and accepted lower occupancy instead.
Where is new supply coming?
Phuket has about 49,380 luxury and upscale rooms, 58% of them on the central and west coast (Surin, Kamala, Patong, Karon). Most of the 3,440 new rooms are upscale properties in the north: Bang Tao, Layan, Nai Thon and Mai Khao. More rooms and softer demand mean more competition for guests in 2027.
What is happening in property?
- Renters lead. 71% of 54,628 property enquiries between December 2025 and May 2026 were for rentals.
- One area dominates. Choeng Thale (Bang Tao, Laguna) had the most rental and sale enquiries and the highest condo asking prices, around THB 126,600 per m².
- International demand. 62% of enquiries came from outside Thailand, from 141 countries.
- Slower new supply. About 25,000 units launched in 2024–2025; Colliers expects 6,000–8,000 new condo units in 2026.
Enquiries show interest, not completed sales.
What does this mean for owners and investors?
| If you are… | Focus on |
|---|---|
| A hotel or villa owner | Cost base, staffing and supplier terms; a budget tested at lower occupancy |
| A property investor | Location, rental competition and a compliant ownership and rental structure |
| A new buyer | Better negotiating room, but full due diligence on title, licences and structure |
FAQ
- Is Phuket still a good place to invest? Demand remains broad and international, but returns now depend more on location, pricing and cost control than in 2023–2025.
- Which area has the strongest demand? Choeng Thale (Bang Tao and Laguna) led both rental and sale enquiries in the first half of 2026.
- Will hotel prices fall? Hotels have so far held rates and lost occupancy. New supply from 2026–2028 could increase pressure on rates.
Planning an investment or reviewing a hospitality business in Phuket? Kenzabay supports forecasting, due diligence and property management. Schedule a consultation.
This article is general information, not investment advice. Figures come from third-party sources and may be revised.
Sources: Khaosod English, 3 Sept 2026 – 20.8 million foreign tourists in 8 months · Nation Thailand, 28 July 2026 – Phuket luxury hotels (Cushman & Wakefield data) · Explera, 16 Sept 2026 – Phuket upscale room supply · The Thaiger, 13 June 2026 – Phuket property market (FazWaz data)