Key points
- Executives said the delay reflects investor caution, subdued travel flows, and a need to reinforce the earnings of core hotel assets before entering the capital markets.
- Onyx is also adopting a new model with developers such as Sena Development, converting sections of condominium projects into Shama serviced apartments — a strategy that may also be replicated in Phuket.
- For the latest on the hotel market in Bangkok and the rest of Thailand, keep on logging to Bangkok Hotel News.
Bangkok Hotel News: Onyx Delays REIT Ambitions as Thai Tourism Struggles Onyx Hospitality Group is recalibrating its financial and development roadmap as Thailand’s tourism sector continues to deliver softer-than-expected performance. The company confirmed that its long-anticipated Onyx Leasehold REIT will be postponed from its initial 2025 target to mid-2026. Executives said the delay reflects investor caution, subdued travel flows, and a need to reinforce the earnings of core hotel assets before entering the capital markets
Onyx delays its REIT launch as Thai tourism recovery remains uneven.
Image Credit: Onyx Hospitality
Chief executive Yuthachai Charanachitta said overall revenue per available room in Thailand has remained flat, largely due to inconsistent foreign arrivals and weaker short-haul markets. However, he noted early signs of improvement as Chinese visitors begin returning after shifting their travel preferences to Japan and Vietnam. This gradual rebound should help stabilize occupancy across the group’s Thai portfolio, with this Bangkok Hotel News report highlighting how hotel operators are adjusting their strategies to cope with evolving travel patterns. Yuthachai added that the upcoming national election could further strengthen market sentiment and investor confidence.
Portfolio Refinement and REIT Strategy
Onyx confirmed that four major assets — Amari Bangkok, Amari Pattaya, Ozo Pattaya and Ozo Phuket — remain central to the REIT’s structure. The company aims to maximise income across these hotels to support a favourable valuation when the REIT eventually launches. Financial chief Wuthivet Vetchabutsakorn explained that the second and third quarters were challenging for Thai tourism, contributing to the stagnant RevPar numbers, though overseas properties in Malaysia, Hong Kong and Laos performed strongly.
Demand softness has been most visible in Bangkok and Pattaya, where short-haul markets typically dominate. Phuket continues to buck the trend, recording 3–4 percent RevPar growth year-on-year thanks to long-haul arrivals that have proven more resilient.
Bold Expansion Despite Market Pressures
Despite current headwinds, Onyx is pushing ahead with an ambitious expansion strategy. By 2030, the group aims to operate 75 properties, up from the current 49 across seven markets. Much of this growth will come from the Shama serviced apartment brand, which is increasingly popular among long-stay travellers seeking premium urban accommodation.
The company has set aside a THB 6 billion investment budget over the next five years. Key upcoming projects include the EQ Phuket luxury hotel, developed in partnership with Malaysia’s Equatorial Group and scheduled for a 2028 debut. Additional plans include a major renovation at Amari Phuket, expansion of Amari Koh Samui, and a new Shama Pattaya property. Onyx is also adopting a new model with developers such as Sena Development, converting sections of condominium projects into Shama serviced apartments — a strategy that may also be replicated in Phuket.
Yuthachai emphasised that Thailand’s tourism policy should shift to focus on visitor spending rather than volume. He urged the government to reconsider the visa-free access granted to certain markets where travellers reportedly exploit the policy to work illegally.
The overall outlook for Onyx remains cautiously optimistic, with the company balancing short-term challenges against long-term growth opportunities. Its strategic pivot, investment pipeline and shift toward premium long-stay accommodation reflect a broader transformation underway in Thailand’s hospitality sector, and industry watchers will be closely monitoring whether demand recovery accelerates in 2025.
For the latest on the hotel market in Bangkok and the rest of Thailand, keep on logging to Bangkok Hotel News.
