5-star hotel price pressure crushing Pattaya budget inns

Aggressive rate-cutting by Pattaya’s corporate-owned five-star resorts may put the city’s mid-range and budget inns out of business.

With corporate owners, Pattaya’s five-star resorts have managed to survive the coronavirus pandemic, but their aggressive rate-cutting may put the city’s mid- and budget inns out of business.

Budget hotels away from the beach, such as on Soi Khopai, have cut room rates to 400 baht a night and opened their beds to short-time visitors for just 230 baht. The customers are Thais but even they and their families may not be enough to keep the bargain-basement rooms in business.

On Jomtien Beach Road Soi 14, the 89-room Sarita Chalet and Spa Hotel, a three-star hotel previously popular with Chinese tour groups, is offering rooms for 2,500 baht a week, with monthly rates starting 3,990 baht, one month deposit, no kitchen, no sea views, walk-in only or call to book and deposit 038 233 952. Water 100 baht, electricity 7 baht per unit.
But even at those prices, occupancy remains low.

Hotel executives said price pressure from high-end resorts is crushing the mid-tier hotels in Pattaya, as rooms at luxury hotels nearly are the same price these days at three-star accommodations.
The hotel estimates things must turn around in two or three months if it is to survive.

Hotel execs estimate things must turn around in two or three months if they are to survive.