Luxury travel demand boosts hotels in Southeast Asia - Bangkok Post

Ms Bailly says global demand for luxury travel remains strong despite conflicts and rising travel costs. Southeast Asia remains a growth pillar for luxury travel amid the ongoing Middle East crisis as more travellers shift to the region, including Thailand, viewing it as a safe haven, according to global hospitality brand Accor.

Maud Bailly, chief executive of Sofitel, MGallery and Emblems at Accor, said that despite global conflicts and soaring travel expenses, the appetite for luxury travel remains positive around the world.

"Luxury goods may face some challenges, but luxury travel and experiences have not," said Ms Bailly.

The level of luxury travel is actually increasing, benefiting Southeast Asia because it is seen as a safe haven amid war in the Middle East.

Many travellers who used to visit the Middle East, particularly Dubai, are shifting to destinations such as Thailand and Vietnam, she noted.

The theme of luxury is about being inspirational, and is deeply rooted in local destinations and authenticity, making Thailand a perfect match in this regard, said Ms Bailly.

Luxury hotel performance in the region is expected to grow year-on-year, with Thailand and Vietnam leading the market, she said.

Despite Thailand's mature market, where Accor brands are already established, there is still potential for luxury property development on lesser-known islands and in emerging destinations, said Ms Bailly.

The company wants to convert existing properties or partner with newly built projects to bring three Accor brands -- Sofitel, MGallery and Emblems -- to the region.

In Southeast Asia, Accor operates 30 hotels under these three brands, with another 26 in the pipeline. In Thailand, it operates two Sofitel and seven MGallery hotels, with two new properties in Phuket expected to open by the end of this year.

Globally, Accor operates roughly 250 hotels under Sofitel and MGallery, as well as its newest brand Emblems with two properties, and 100 hotels in the pipeline.

During the first half of 2026, Accor's luxury hotel segment reported revenue per available room (RevPar) growth of 4.5% year-on-year.

In the second quarter, its luxury RevPar excluding the Middle East grew by 9.1%, while for the third quarter it posted an uptick of 10.6%.

This year, Accor expects total year-on-year RevPar growth of 2-2.5%.

As part of its development pipeline, the company plans to offer more facilities and room types suited to multigenerational travel, as luxury accommodation nowadays caters not only to adult couples but also to families, said Ms Bailly.

Sofitel hotels are launching campaigns and promotions targeting families with children. More than 40% of Sofitel hotels worldwide are undergoing renovations to modernise their facilities and elevate brand standards, including properties in Thailand. This has also helped to drive demand for new Sofitel hotels in the pipeline.

Meanwhile, boutique luxury brand MGallery is benefiting not only from leisure tourists but also from small business and meeting groups, a trend that has continued since the pandemic.

The brand has significant growth potential in the region, as each country offers a distinct culture that could help with hotel expansion.

Emblems remains a young brand within Accor, with only two operational properties in the UK and Canada. The brand favours tranquil, iconic destinations, making it well suited to Asia's extensive range of wellness retreats and sanctuaries, said Ms Bailly.