Phuket hotels are softening, but that makes buyers filter better
Phuket’s hotel market sent a useful signal in the first half of 2026: occupancy, ADR and RevPAR weakened in the luxury and upscale segments while new supply kept coming. For property buyers, this is not a reason to leave the market. It is a reason to choose more carefully. Phuket is still strong, but selection matters more now.
What happened
In the first six months of 2026, Phuket saw fewer hotel guests, and upper-end hotel performance softened. At the same time, about 3,440 more rooms are in the pipeline through 2028, with much of the future supply concentrated in the north of the island.
So the market is not stopping. It is getting more competitive. That means location and product quality matter more than simple “beachfront and expensive” positioning.
Why it matters for property
When hotels compete harder on price and service, condo and villa buyers targeting rental income should focus on the real asset, not just Phuket’s overall popularity. Better performers tend to be projects with professional management, a clear brand, easy access to beaches, dining, schools and the airport.
The northwest and west of the island deserve extra attention because much of the new supply is being added there. Demand remains, but the project must be stronger.
What buyers should check
- Seasonal occupancy, not only headline pricing.
- Who manages the property and how income is calculated.
- Nearby competition: hotels, branded residences, short-term rentals.
- Exit liquidity, not just rental promise.
Bottom line
Phuket remains attractive for buying and investing. The winners now are the assets that pass a stricter test: location, legal clarity, management and real market demand.
