Thailand’s United Hospitality Group Betting Big on Bangkok Hotel Growth as Office Sector Stalls

Bangkok Hotel News: UHG Charts New Territory Amid Market Shifts

United Hospitality Group (UHG), a major name in Thailand’s midscale hotel sector, is set to pour 1.5 billion baht into an ambitious expansion of its hospitality footprint across Bangkok. The group is shifting its focus away from the oversaturated and underperforming office space market, transforming vacant floors into vibrant hotel properties. The strategic pivot is a direct response to mounting challenges in the commercial real estate sector, particularly as key office tenants begin to vacate longstanding contracts.

A prime example is UHG’s Ladprao Hills project, where its lone tenant, the Digital Economy Promotion Agency, is preparing to vacate after establishing its own headquarters. This Bangkok Hotel News report highlights how UHG sees greater value in repurposing the 7,000 square meters of office space—previously leased at 600 baht per square meter—into 200 hotel rooms. This redevelopment is expected to generate more than triple the current rental income, tapping into the city’s robust tourism rebound.

New Rooms Tailored for a Changing Market

With construction expected to wrap up in just three months, the new hotel rooms at Ladprao Hills will significantly expand UHG’s offerings under its Quarter brand. Inspired by the success of The Quarter Ladprao, which posted an impressive 90% occupancy rate in 2024 at an average room price of 2,500 baht, the company forecasts these new rooms will rake in around 160 million baht in annual revenue.

Notably, UHG is adapting its layouts to accommodate evolving traveler preferences. A portion of the new rooms will be transformed into two-bedroom family suites, achieved by connecting studio and one-bedroom units at each floor’s end. This approach targets an increasingly prominent guest segment—family groups from China, the Middle East, and Europe—whose travel patterns emphasize shared accommodations and longer stays.

Family Suites Lead the Way Across Multiple Properties

UHG’s expansion doesn’t stop at Ladprao. The company is planning to renovate nine of its existing 18 hotels, many of which operate under The Quarter brand. Properties in key locations like Phrom Phong, Ari, Ratchathewi, Sala Daeng, and Ruam Ruedee, as well as Alt Nana and Residences on Thonglor, are all scheduled to receive family suite upgrades.

https://www.uhgholdings.com/hotel.php

These revamped rooms are projected to command premium nightly rates ranging between 6,000 and 8,000 baht, a sharp increase from the 2,400 baht typically charged for standard units. The group expects this move to significantly boost per-room revenue while catering to the demands of increasingly diverse international clientele.

European Travelers Now Driving Momentum

An influx of European tourists is helping UHG navigate a slower-than-expected return of Chinese travelers. This demographic shift has brought longer stays—typically between four and seven nights—and a growing appetite for in-house dining and experiences. UHG responded by enhancing food and beverage services across several properties, aligning with these travelers’ preferences for quality, variety, and local flair.

One of the clearest indicators of this trend is the performance of The Quarter Saphankhwai, launched in February 2025 with 200 rooms. The hotel quickly became a favorite among visitors from Germany, the UK, France, Spain, the Netherlands, and Italy. While these tourists generally exhibit more conservative spending compared to Chinese guests, their extended stays and consistent travel behavior offer steady revenue potential.

Eyes on the City Fringe for Future Growth

In addition to reconfiguring existing assets, UHG is negotiating with landowners in fringe districts near Bangkok’s mass transit routes to lease space for three new hotels. These projects, part of the 1.5 billion baht investment plan, are strategically aimed at capturing underserved traveler demand while maintaining proximity to the city’s core attractions.

This strategy aligns well with UHG’s broader vision. Known for combining design-forward aesthetics with affordability, UHG’s hotels have become go-to choices for tech-savvy tourists and business travelers alike. Its emphasis on functional elegance, convenience, and seamless hospitality experiences has positioned the brand as a leader in Bangkok’s mid-tier hospitality market.

A Calculated Shift That Reflects Market Realities

As Bangkok continues its post-pandemic transformation, developers are increasingly looking beyond traditional real estate models. UHG’s calculated pivot from office leasing to hospitality underscores a keen understanding of current market dynamics. With remote work reducing demand for commercial space and tourism regaining momentum, hotels offer a much more attractive return on investment.

UHG’s plans reflect not just short-term profitability, but a long-term commitment to sustainable growth. By adapting existing properties, catering to emerging travel trends, and targeting high-potential neighborhoods, the group is fortifying its position as a forward-thinking industry player. The conversion of 7,000 square meters of stale office floors into dynamic, revenue-generating hotel rooms is emblematic of this evolution.

Moreover, their push to add more family-oriented accommodations demonstrates a sensitivity to global travel patterns, particularly as multi-generational and group travel sees a post-COVID boom. In prioritizing flexibility, diversity of offering, and location strategy, UHG is setting a blueprint that others in the industry may soon follow.

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